Job Cuts in Tech Sector Soar, Report Finds

Mon Oct 18,10:47 AM ET   U.S. National - Reuters

NEW YORK (Reuters) - The U.S. technology sector suffered another round of
widespread layoffs during the third quarter, with computer firms slashing
jobs most aggressively, a report said on Monday.

"High-tech job cuts are on the way up as the end of the year approaches,"
said John A. Challenger, chief executive officer of Challenger, Gray &
Christmas. "Behind this trend is the fact that technology companies have
virtually no pricing power,"

Job cuts in technology jumped 60 percent between July and September to
54,701, compared with 34,213 layoffs in the second quarter. Computer
companies alone saw job cuts jump 127 percent, to 30,624.

Manufacturers in the sector are having trouble making money since they have
been forced to lower prices in order to attract consumers, Challenger said.
So they end up firing workers in order to maintain healthy profit margins.

Worse yet, the growing number of layoffs is not being countered by any move
to hire, Challenger added.

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