Archive for Layoffs

| September 2, 2012
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Tech Labor Day

Tech recessionToday is Labor Day in the US. The US Department of Labor says Labor day is dedicated to the social and economic achievements of American workers, Outplacement firm Challenger, Gray & Christmas summed up the social and economic achievements of American tech workers recently. Their report stated that in the first half of 2012, layoffs in the technology sector hit their highest levels since 2009. There were more than 51,000 planned cuts announced by the end of June.

According to CRN, most of the layoffs came from the biggest firms. (rb- I kept a butchers toll of tech layoffs in 2009. The first half of 2012 seems just as grim.)

HPHP – Leads the body count in 2012 with its plan to layoff 27,000-plus layoffs. HP (HPQ) made the announcement in May, saying it would cut about 8 percent of its workforce over the next two years.

Nokia – The downward spiral continues for Nokia (NOK) with the announcement that it will slash 10,000 jobs, estimated to be around 19% of its worldwide workforce, by the end of 2013 according to a June 2012 report from the New York Times.

Sony In April Sony (SNE) said it would slash about 6 percent of its global workforce, about 10,000 employees, in an effort called “One Sony,” to refocus the company around its digital imaging, gaming and mobile businesses. Also the firm announced that Sony Mobile Communications its mobile handset division would be laying out 15% of its workforce or about 1,000 people. According to TechCrunch the process is due to complete by March 2014.

Google logoGoogle – In a long-expected move, Google (GOOG) earlier this month confirmed it would axe about 4,000 jobs from its Motorola Mobility subsidiary representing about 20 percent of Motorola’s 20,000-employee headcount. Google said that some 90 former Motorola facilities would be closed down.

Panasonic - In May, Panasonic (PC) announced it would cut another 7,000 staff after announcing in April 2011 plans to eliminate 17,000 jobs over two years.

Research In Motion – Former king of smartphones, Research In Motion (RIMM) has suffered setback after setback in the face of Apple and Android competition. RIM early this year warned of workforce reductions, and in mid-June, several reports held that those reductions had already begun, in small batches of 10-or-so employees. New reports in August stated that RIM will eliminate some 3,000 other jobs this month.

Olympus -  CNET reports that Olympus (OCPNY) will cut 2,700 employees from its global workforce between now and March 31, 2014.

Yahoo logoYahoo – Back in April Yahoo (YHOO) cut about 2,000 employees across all the major units of the company. CRN speculates that Yahoo’s job cutting will grow as new CEO Marissa Mayer gets her feet wet.

Lexmark - Lexmark (LXK), the printer maker is jettisoning its inkjet printers and laying off 1,700 workers as paper becomes increasingly passe in an age of online photo albums on Internet hangouts like Facebook and Pinterest according to the MercuryNews.com.

Cisco - In mid-July, Cisco (CSCO) confirmed 1,300 more job cuts, about 2 percent of its global workforce.

Activision - Activision (ATVI) subsidiary Blizzard Entertainment, maker of World of Warcraft announced that it will cut its global workforce by 600 employees Gamespot reported in February.

Best BuyBest Buy - CNET reports that the retail giant has decided to cut 650 Geek Squad workers. Best Buy (BBY) confirmed to Minneapolis-St. Paul news station KARE 11 the nationwide layoffs were effective August 1.

Logitech - the $2.3 billion peripherals king has had Logitech’s financial struggles. In June, Logitech (LOGI) said it would cut about 450 jobs, roughly 13 percent of its global workforce.


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Category: Layoffs | Tags: , , , , , , ,
| August 23, 2011
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Foxconn Replacing 1 Million Humans with Robots

GreedI recently noted from the Bach Seat that the manufacturer all things digital,  Foxconn was moving production to Brazil from China because of rampant wage inflation. Now it seems that the Taiwanese technology giant has decided that to drop people from production altogether.

Foxconn workersTechEye reports that Terry Gou, founder and chairman of Foxconn (2038), told Xinhuanet that the firm will replace up to 1 million people with robots over the next three years. Mr. Gou told Xinhuanet that Foxconn now has 10,000 robots and the number will be increased to 300,000 next year and 1 million in three years. The manufacturer now has over 1.2 million employees with one million of them based in China.

Mr. Gou told Xinhuanet the robots will replace humans who do simple and routine work such as spraying, welding and assembling of products for firms such as Apple (AAPL), HP (HPQ), Cisco (CSCO), Dell (DELL), ASUS (2357), Intel (INTC), Microsoft (MSFT), Nintendo (7978) and Sony (SNE).

Foxconn needs to automate more of its manufacturing processes in order to make up for labor shortages and stay ahead of its competitors, said Amy Teng, an analyst with research firm Gartner (IT), told PCWorld.

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Mr. Gou told employees that he wanted to move the company’s workers “higher up the value chain, beyond basic manufacturing work,” according to a company statement cited by PCWorld.

While no one will deny that robots are efficient and they also don’t commit suicide due to harsh working conditions. But as we painfully know here in Detroit, robots create job losses, thus generating unintended consequences throughout the world economy.What could be the unintended consequences of 1 million unemployed Foxconn worker in the Peoples Republic of China?

If political leaders like former Gateway Computers CEO and Michigan Governor Dick Snyder and President Obama were truly interested in creating jobs in Michigan, they would be welcoming this announcement and pushing hard for Foxconn to build its robot factory in Detroit, where land is cheap and skilled robotics technicians cast off by the auto-makers can tend to the Foxconn robots.

iPad4, made in Detroit

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Category: China, Layoffs, Out-sourcing | Tags: , , , , , , ,
| July 21, 2011
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Cisco to Cut 11,500 Workers

Cisco‘s (CSCO) two consecutive under-performing quarters finally prompted CEO John Chambers to take action. One of the first actions Cisco will undertake during reorganization is to sell a set-top box manufacturing plant in Juarez, Mexico. FierceEnterpriseCommunications reports that Cisco will sell the plant to Foxconn Technology Group, The plant has about 5,000 workers who likely will remain as employees of Terry Gou according to FierceEnterpriseCommunications.

CiscoIn addition the embattled CEO vowed $1 billion in cuts this year to Cisco’s expenses. Mr. Chambers announced plans to cut its workforce by 11,500. Cisco said about 975, or 15 percent, would be executives with job titles of vice president or above. A Cisco spokesperson said the employee reductions announced would be enough to reach the $1 billion cost-cutting target Chambers set in May.

FoxconnGleacher & Co. analyst Brian Marshall told FierceEnterpriseCommunications that the staff reductions were a good first step for Cisco, but he added that the remaining questions, e.g. how Cisco would fix the top line and drive revenue growth and product innovations, need answers.

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I wrote about Foxxcom’s expansion into the America’s here. This also looks like another step in the de-consumerization of the Cisco product line.

Category: Layoffs, Recession | Tags: , ,
| August 5, 2010
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Wall Street Up Jobs Down

The Economic Policy Institute (EPI) recently pointed out that while Wall Street  has already made up all of the profits lost in the depression, recession,economic slump, the job market remains stalled. The country’s labor market still has far fewer jobs than it did at the start of the recession in December 2007.

The chart from EPI shows trends in both corporate profits (both privately and publicly owned) and employment since the start of the recession. The chart indexes both to 100 at the start of the recession so the lines show how far profits and employment have recovered. Although corporate profits suffered in the early part of the recession, they have been steadily growing for more than a year and are now 5.7% greater than they were at the start of the recession.

Category: Layoffs, Politics |
| February 24, 2010
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Recession Over??

Federal Reserve Chairman Ben Bernanke told us in September 2009 that the recession was “very likely over.” Mark Zandi, chief economist at Moody’s Analytics, told CBS News on 01-30-10  “The Great Recession is over.” UPS CEO Scott Davis told the Atlanta Constitution Journal on 02-03-10 that the recession is over. So to celebrate UPS is going to cut 1,800 positions.

Andrew Bartels, a Forrester vice president and principal analyst, declared the tech recession over on 01-12-10. Despite these prognostications by pundits and politicians, global tech layoffs have soared to over 613,00 since the bottom fell out of the world economy in October 2008.  Layoffs in January 2010 reached nearly 37,000, a monthly magnitude total not seen since May 2009. The telecom firms lead the layoff  count in January 2010 with Verizon, Sprint and ATT accounting for nearly 65% of this month’s announced layoffs.

Tech Layoffs

The overall trend for the last 8 months has been upwards, hardly an indicator that the recession is over.

Category: Layoffs, Recession | Tags: ,
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