US tech sector job cuts highest since 2005: report

January 19, 2010
An computer processer. The number of job cuts in the US technology sector rose for the second year in a row last year hitting the highest level since 2005, according to a report.

The number of job cuts in the US technology sector rose for the second year in a row last year hitting the highest level since 2005, according to a report.

Chicago-based consultancy firm Challenger, Gray & Christmas, Inc. said, however, that a sharp downward trend in the number of job cuts in the second half of the year offers hope of a turnaround in 2010.

Challenger said the technology sector, which includes computer, electronics, and telecommunications firms, announced 174,629 planned job cuts last year.

The 2009 total was 12.3 percent higher than the 155,570 job cuts announced in 2008, it said, and the most since 2005, when tech sector employers announced 174,744 job cuts.

The firm said the pace of job cuts slowed as the year went on. There were 118,108 job cuts between January and June and 56,521 in the last six months of the year.

Challenger said the job cuts announced by the technology sector accounted for 13.2 percent of the 1.3 million job cuts announced across all industries last year.

It said electronics firms announced 65,300 layoffs, up 55 percent from the previous year, computer firms cut 65,261 jobs, about the same as in 2008, and the number of by telecoms firms fell 9.4 percent to 44,068.

"The recession's impact on the was inescapable," said Challenger chief executive John Challenger. "Even with the economy showing some nascent signs of recovery beginning the second half of year, many companies are holding off on investments in new technology.

"It's going to be a slow climb out of this recession, but computer and electronics firms should be among the first to see the turnaround, as companies try to postpone hiring by achieving productivity gains through technology."

Explore further: Deutsche Telekom to slash 19,000 jobs

Related Stories

Report finds turnaround in tech industry

April 19, 2006

A new report found that 61,000 net jobs were added to the hi-tech industry for a total of 5.6 million tech jobs in 2005, indicating a turnaround in the industry, according to a trade association.

High-tech layoffs climb in first quarter

April 6, 2009

During the first three months of 2009 the high-tech sector in the U.S. suffered its deepest layoffs in seven years, according to a firm that tracks the jobs market.

Nokia to ax 220 R&D jobs in Japan

November 24, 2009

(AP) -- Nokia Corp. said Tuesday it is axing 220 jobs at research and development units in Japan as the world's largest mobile phone maker continues to cut costs.

Recommended for you

Sydney makes its mark with electronic paper traffic signs

July 28, 2015

Visionect, which is in the business of helping companies build electronic paper display products, announced that Sydney has launched e-paper traffic signs. The traffic signage integrates displays from US manufacturer E Ink ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.