Job Cuts For Dell, Motorola, and Circuit City

maeveth writes "Talk about not a good time to be working in the tech sector. Layoffs all over the industry have been announced, in a variety of different areas. Last week Dell announced they were partnering with Wal-Mart; this week they are planning a ten-percent reduction in their global workforce. Motorola was already going to cut some 3500 jobs by the end of June; they're now adding another 4000 pink slips to that number (and hoping that next month's RAZR2 launch will boost profits). To top it all off Circuit City is acting in a decidedly schizophrenic manner. The are going to axe about 850 employees, on top of the 70 stores they closed last month ... while also planning to open 165 new stores."

Comments

the sky's not falling

[softwaredoug]

Meanwhile, every tech place I know can't hire fast enough. The good candidates are getting soaked up by the market fast. Wasn't there a stat recently that computer people are in higher demand than during the tech boom? But maybe its just a localized phenomena where I live.

Re:the sky's not falling

[ushering05401]

An old tech veteran I know made a good point. The industry does not need to be healthier for there to be more positions than back in the boom. We are just years down the line and the integration of technology into our society has continued apace... becoming more prevelant in everyday life... less visible and more taken for granted (except for when, say, your cell phone erases your car key).

The industry is larger but not necessarily healthier, more profitable, or better-off in general.

Regards.

Schizofrenia?

[hibiki_r]

What's so strange about closing 70 locations and opening 165? Anyone that has had anything to do with corporate retail planning can see that it can make perfect sense: The company wants to grow, so they add more stores, at the same time, some stores have been performing so badly that they think the location will never be profitable enough, so they are closed.

The only surprising part is that we are talking about all that many stores at the same time: It either means that the former management was ignoring all the indicators, or that the new management has just gone overboard to make a point.

Either way, it's something that seems perfectly healthy for a retail chain to do.

Tech sector?

[TimeTrav]

FTFA:

"This time around, the company [Circuit City] axed roughly one manager from each of its 654 stores along with nearly 200 positions at its Richmond, VA headquarters."

How does sacking a bunch of retail managers and back office support staff spell doom for tech sector employees? I understand that job cuts are bad things, but I don't think this one should be lumped in with the tech sector.

Circuit City != tech sector

[Gadgit]

Perhaps someone can inform me how people getting laid off at Circuit City is any indicator of the status of the tech sector. Now I have never bought anything from a Circuit City but they weren't the most technically adept people I have ever talked to...just a bunch of dullards spouting numbers off of a tag and having no clue what they actually mean. I can see Motorola and Dell, but lumping Circuit City in there is just grasping for straws

Sorry, this is to please Wall Street only

[postbigbang]

During growth cycles in the stock markets, like the record-breaking S&P 500, it's very typical for companies to shed employees. It has nothing to do with Tech as an industry segment, has nothing to do with outsourcing, has nothing to do with EducationInAmericaToday, has nothing to do with anything but pleasing Wall Street. This allows stockholders to fatten up the stock price, lower DE ratios, and at the end of the day, inject new blood.

Does it suck? Of course it does. Wall Street is a nasty bitch.

Schizo?

[RickOfTheHillPeople]

"decidedly schizophrenic manner"

Schizophrenia != Split Personality

Tech Industry?

[TheOldSchooler]

I don't know if I'd really consider working for Circuit City to be part of the "tech industry". More like retail sales.

Re:This'd be a feature of printing money.

[megaditto]

Bad times? What are you smoking.

Here is today's article from NY Times Dell Reports Better-Than-Expected Profit http://www.nytimes.com/2007/06/01/technology/01del l.html

The reason these people are laid off is because the companies want even more profits, not because they are losing money during "bad times."