As the ongoing global economic crisis continues to impact the technology sector, many employees who once thought their jobs were secure are being given pink slips and shown the door.
Giants like Microsoft, IBM and Sun Microsystems have cut tens of thousands of jobs in just the first quarter of 2009, according to a recent report from Challenger, Gray and Christmas, a Chicago-based outplacement firm.
That is the highest number of quarterly layoffs recorded since the days of the Internet bust in 2002. The number of employee cuts rose 45% in 2008, according to the firm. The new numbers represent a 27% increase in cuts over the fourth quarter of 2008. Compared to the same period one year ago, job cuts have multiplied fivefold. More than 67,100 jobs were slashed by the end of February.
Companies attempting to alleviate the pressure on the bottom line have sometimes turned to outsourcing and offshoring - the process of outsourcing jobs overseas - to reduce payroll costs and other expenses such as health insurance, pensions, 401k matches, etc.
Not all layoffs, however, are actively publicized. To avoid the glare of the spotlight and a potential backlash, organizations sometimes let workers go quietly.
Recessions naturally benefit some businesses - liquidators, debt collectors and junk removers, for example, generally have their work cut out for them in times like these. What about outsourcers - are they raking in the bucks?
