Computer Sector Ranks No. 5 in Job Cuts

Although the computer industry generated the fifth largest number of job cuts last year, it’s poised to post strong gains in certain slivers of the sector in the new year, according to a Challenger, Gray & Christmas report released Friday.

LayoffsThe computer sector lost 35,136 jobs last year, according to the report, as Hewlett-Packard cut tens of thousands of employees from its payroll and companies like Cisco and Intel also announced large cuts. In the month of December alone, the computer sector lost 5,578 jobs – up more than five times the amount lost the same period a year ago.

Despite the grim news, the computer sector managed to exit 2013 with fewer layoffs overall than 2012, notes Challenger Gray. In fact, job cuts were down 24 percent in the computer sector last year and the industry ranked third in terms of hiring announcements, with 26,000 employees added to the payroll.

 “Our hiring total represents a tiny fraction of the actual job creation, since most employers do not formally announce hiring plans. Computer science, information technology, electronics manufacturing and telecommunications will continue to be strong job generators in the 2014 economy,” says John Challenger, CEO of the Chicago outplacement firm Challenger, Gray & Christmas.

He added the computer sector will benefit as new companies form and existing companies expand their products and services related to Big Data, cloud computing, and security.

Everybody Else

For 2013, employers reported 509,051 cuts, down 3 percent from 2012 and the lowest yearly total since 1997, the Challenger data showed. “The recovery has been slow, but every year since the recession has been better than the previous one,” says Challenger.

New York-based firms slashed the most jobs in 2013, with cuts of 82,952. California firms came in second with 59,535 cuts.

The rate of layoffs at U.S. firms also improved for the month of December, with the number of planned cuts falling 32 percent when compared to November. Employers announced 30,623 layoffs in December, dropping from 45,314 in November, according to Challenger Gray. The last time employers reported a lower number of job cuts was June 2000, when they announced 17,241 planned layoffs.

On the other side of the employment spectrum, job growth is showing signs of a slow recovery. The U.S. Department of Labor indicated on Friday that total non-farm payroll employment inched up 74,000. The U.S. non-farm payrolls report was forecasted to add 196,000 jobs in December, according to Reuters. However, the unemployment rate declined to 6.7 percent in December from 7.0 in the previous month.

9 Responses to “Computer Sector Ranks No. 5 in Job Cuts”

      • Fred Bosick

        Yes we are. Some of my ancestors came through Ellis Island in the early 1900s. They paid their own way and they came to stay!. H1-B visaholders are shipped in at the behest of narrow business interests. Rather like the Dutch East India company staffing their plantations.

        At first, they were indentured servants who worked 7 years to pay off their transport and training, then allowed to become free men. Then the company and others decided that it was better to enslave.

        Do note, that the H-1B visa is controlled by the sponsoring company…….

  1. Tim carroll

    It’s no surprise with the influx of cheap foreign
    Labor at abysmal rates that companies get rid
    Of quality American talent. One day India will
    Have a blackout and the US will shutdown

  2. Friends,
    It seems there is a mis-conception that foreign labors are cheap, there may be days during which it was cheap. Nowadays its not cheap and not feasible for us to work here. We are not saving much and the cost of living have increased a lot. I am in USA since 2006.
    Then you may ask a question why do you stay here? One simple reason as my kids have grown and attending the High school and they will find very difficult to get college seats in our home country.
    Coming to the college expenses its still higher here.
    I am in this field as a consultant and found the number of locals who do quality programming is very less( I mean the number of people should increase), even now I get lot of FT positions and couldn’t get that becoz of H1B. The bottom line is if the local resources are available then I shouldn’t get calls itself.
    India wont get Blackout as you think, it has not even explored the potential growth for IT, its more than what it does to countries like USA, Europe etc. Yes we do have constraints like corruption etc which we will come out of it.
    This is my opinion whenever i see blogs that mentions about outsourcing or immigrations, the locals need to understand that they need to work on STEM and create lot of engineers and other relevant positions.
    History of us:
    25-30 years back we were not educated like this and we dint get chance to learn due to caste ism, but we over came that by changing law and giving opportunity to learn in school and college.

    Nothing offense, go to root cause.
    Do you guys support illegal immigrant reforms?

    • At least H-1Bs are following the law. Illegal aliens need to leave. It’s easy. Just make their lives miserable here (no rentals, bank accounts, utilities, cable TV, smartphones, SCHOOLS, etc.) and many will leave voluntarily. Their employers need to be in prison.

      • Fred Bosick

        If they leave, the jobs immediately become better paying.

        If H-1b, EB-2, and L1 visas are revoked, the America citizen who trained you before being laid off will get his job back. And you’ll have to go back and compete with 1.2 billion of your countrymen.