Despite Layoffs, Tech Industry Stays Healthy

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Technology companies have declared a combined 72,333 job cuts in the past twelve months, according to a new report from Challenger, Gray & Christmas. But don’t take that as a sign of trouble for the tech industry as a whole.

“It would be wrong to assume that increased job cuts are a sign of weakness in the tech sector,” John A. Challenger, CEO of the firm, wrote in a statement accompanying the data. “The simple fact is that the industry is going through a transformation and companies either have to shift their focus or risk extinction.”

Enterprises that have eliminated thousands of jobs over the past year include Hewlett-Packard, Dell, Intel, and Microsoft. Yahoo has also cut positions (tip for managers: don’t refer to layoffs as a ‘remix,’ unless you want to face a lot of negative press.)

Those firms, which represent the “old guard” of the tech world, have attempted to reinvent themselves as cloud-first, mobile-first companies supple enough to compete with even the most aggressive startups. The downside of such reinvention, of course, is that it demands the winnowing of legacy businesses.

Meanwhile, the unemployment rate for the tech industry as a whole remains low, and companies continue to hunt for tech pros with the right mixes of development and management skills. If you’re searching for a new gig, check out Dice’s summer job-search checklist.

Image Credit: YanLev/Shutterstock.com

Comments

2 Responses to “Despite Layoffs, Tech Industry Stays Healthy”

April 28, 2016 at 11:18 am, BC Shelby said:

…Intel just announced another huge round of layoffs (again). Where I live they are the largest tech employer .

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April 29, 2016 at 8:28 pm, Lawrence Weinzimer said:

You can never tell what’s happening in the corporate boardroom, or go by the valuation of their stock, or when they’ll get a tax credit for jobs going elsewhere.
Just keep evolving with the times such as they are..

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