Latest News: Technology |  Celebrity |  Movies |  Apple |  Cars |  Business |  Sports |  TV Shows |  Geek

Trending

Filed under: News | Technology News

 

Tech Industry: Where Lay-offs is a Permanent Feature

Feb 6 2014, 8:40am CST | by

1 Updates
Tech Industry: Where Lay-offs is a Permanent Feature
 
 

YouTube Videos Comments

Full Story

Tech Industry: Where Lay-offs is a Permanent Feature

While much of the focus in the current news cycle seems to be on celebrity top executives and the minutia of selecting and deselecting them, there is an underlying trend receiving far less notice: layoffs of ordinary workers at tech companies.

The problem stems from the long-term malaise of the x86/Windows ecosystem, which has been largely upended by the iOS/Android/ARM ecosystem in the fast-growing high-mobility space.  Yes, hundreds of millions of PCs will continue to be sold year in and year out for the next decade or even longer.

Perhaps Jon Peddie nailed it best when he said, “A PC is a truck, and sometimes you need a truck.”  But all the growth is in high mobility, and PC companies are losing jobs.

An example is Sony.  Long one of the weakest players in the PC business, the mother ship is now ready to slough off the PC division and meanwhile is letting employees go.

Some of the personnel shedding is structural.  For weeks, rumors of massive layoffs had been swirling around Dell, which recently went private.  A couple of days ago, a company spokesperson came out and said, yes, there will be some layoffs, but far fewer than rumors had indicated, and the company will be hiring in high-growth areas.  Dell has a lot of discretion about how it manages profit growth, now that it is no longer under the glare of Wall Street’s scrutiny.

Hewlett-Packard, the former number-one PC maker, is working its way through cuts enumerated in tens of thousands.  IBM, with no exposure to PCs but a vulnerability to a hardware slowdown in an increasingly cloud-oriented market, is quietly trimming a few thousand people (and selling its x86 server business to Lenovo).  Other enterprise hardware companies sloughing jobs include Cisco, EMC, and Juniper.

Windows/x86 ecosystem underwriters Intel and Microsoft are also feeling the heat.  Lower profits or outlook have triggered trimming here and there.

Even in the high-mobility space, some of the weaker players are downsizing.  In this part of the landscape, layoffs are driven not by a slowing market, but by brutal competition.

Motorola Mobility was bleeding money and letting thousands of people go, even as Google was trying to get out from under it.  Assuming Lenovo’s acquisition of Moto goes through, expect a bit more reduction before it stabilizes.  HTC misstepped several times on the product front in the past couple of years, and that was all it took to begin the “streamlining” and “optimizing” with respect to workforce size.

BlackBerry pretty much missed the boat entirely as smartphones took off.  The company hemorrhaged money, leading to thousands of layoffs.

An exhaustive accounting of the details can be found in CNet’s “Layoffs” section.

What becomes apparent when one takes all these individual company decisions together is that important sectors of tech, which were previously fonts of job growth, are no longer the gold rush that they once were.  Yes, some companies are thriving, growing, and hiring.  Apple and Samsung, the two biggest winners in high mobility, are stable.  And Google, Facebook, Twitter, and others participating in the newer (and higher growth) markets, are doing fine.

But the rust belt of the industry, hardware manufacturing, is a tough place to be.  And it’s hard to see that situation changing in the foreseeable future.

Twitter: RogerKay

Source: Forbes

 

iPad Air Giveaway. Win a free iPad Air.

You Might Also Like

Updates


Sponsored Update


Advertisement


More From the Web

Shopping Deals

 
 
 

<a href="/latest_stories/all/all/31" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

 

Comments

blog comments powered by Disqus

Latest stories

Josh Gordon's 1-Year Suspension for Substance Abuse Upheld
Josh Gordon's 1-Year Suspension for Substance Abuse Upheld
The NFL upheld its one-year suspension for Cleveland Browns wide receiver Josh Gordon on Aug. 27 for violating the league's substance abuse policy.
 
 
EA Deals: Inquisition &amp; FIFA 15 at 23% Off
EA Deals: Inquisition & FIFA 15 at 23% Off
Dragon Age Inquisition & FIFA 15 on PC drop 23% with a rare preorder coupon for two AAA titles out this fall.
 
 
Celebrity Couple Kelli Garner and Johnny Galecki Call it Quits
Celebrity Couple Kelli Garner and Johnny Galecki Call it Quits
The pair have decided to split after more than two years together.
 
 
Leaked iPhone 6 manual shows brand new design
Leaked iPhone 6 manual shows brand new design
The card shows a diagram of all buttons on the Apple iPhone 6
 
 
 

About the Geek Mind

The “geek mind” is concerned with more than just the latest iPhone rumors, or which company will win the gaming console wars. I4U is concerned with more than just the latest photo shoot or other celebrity gossip.

The “geek mind” is concerned with life, in all its different forms and facets. The geek mind wants to know about societal and financial issues, both abroad and at home. If a Fortune 500 decides to raise their minimum wage, or any high priority news, the geek mind wants to know. The geek mind wants to know the top teams in the National Football League, or who’s likely to win the NBA Finals this coming year. The geek mind wants to know who the hottest new models are, or whether the newest blockbuster movie is worth seeing. The geek mind wants to know. The geek mind wants—needs—knowledge.

Read more about The Geek Mind.