Intel slashing adds to past year’s 72,000 tech job cuts

The huge cutbacks announced by Intel Tuesday underscore trends that have already caused the industry to shed tens of thousands of jobs in the past 12 months, according to a new report.

In the 12-month period between March 31, 2015 and March 31, 2016 cutbacks have totaled 72,333 job cuts — 17,002 of them lost this year — a 148 percent increase from 6,860 cuts in the first quarter of 2015, according to a report by outplacement company Challenger, Gray and Christmas.

Intel is cutting 12,000 jobs, or 11 percent of its workforce, in response to trends that are shaking up many tech giants, the report noted.

Many old-line tech leaders are responding to dramatic market changes caused by a migration to the cloud and away from the closed-off corporate data center, and away from desktop computers to mobile devices. Mergers and cutbacks are becoming common in Silicon Valley and tech centers elsewhere in the U.S.

Dell Computer announced a cutback of 10,000 jobs earlier this year. The Texas PC maker is merging with storage giant EMC. Last year Hewlett-Packard Enterprise trimmed 30,000 jobs and Microsoft eliminated 7,800 jobs, according to Challenger.

HP’s response to market challenges was to split in two, with its PC and printer division and its enterprise computing division becoming separate companies.

Yahoo has pledged to cut 1,600 jobs by the end of the year, 15 percent of its workforce. It has cut 1,200 so far, CEO Marissa Mayer said Tuesday.

Change is constant in the tech sector, said Challenger, Gray and Christmas CEO John A. Challenger.

“It would be wrong to assume that increased job cuts are a sign of weakness in the tech sector,” he said in releasing the report. “The simple fact is that the industry is going through a transformation and companies either have to shift their focus or risk extinction,” he said.

Analyst Trip Chowdhry of Global Equities Research predicts the layoffs will continue with a vengeance.

“The old world is going to disappear much faster any of us can imagine,” he said. “You are seeing it in the numbers of so many companies laying off.”

Photo: Intel headquarters (Len Lahman, Mercury News)

 

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  • SmallGovtGuy

    The world is a cruel place. But if a business has to survive, it has to make these tough decisions.

  • ImperatorMachinarum

    I also agree that this isn’t a case of mismanagement or greed. We really are seeing a sea change in the computing landscape. Social, mobile, IOT, and cloud computing continues to mandate hard changes.

    Unfortunately, as always, this is tough on labor. I feel for people losing their jobs. Especially in the bay area, which isn’t cheap.

    There seems to be no easy solution. The market is what it is. With that said, not to be too cynical, yes, INTC is proving to be a good investment. I believe they’ll survive and prosper.

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