NEW YORK-Telecommunications companies had the highest number of job cuts during the first quarter within the technology sector, according to a quarterly survey conducted by outsourcing company Challenger, Gray & Christmas.
“The biggest factor pushing tech job cuts to a five-quarter high was a surge in corporate combinations in the telecom sector, which resulted in over 30,000 job cuts in February,” said John A. Challenger, chief executive officer of the firm. “In fact, 92 percent of the first-quarter telecom job cuts resulted from mergers.”
Of nearly 60,000 technology jobs cut during the quarter, telecom firms cut 35,079 jobs, followed by the computer industry with more than 16,168 job cuts during the first three months of this year. Technology job cuts reached their highest level since the fourth quarter of 2003 when more than 80,000 tech jobs were lost.
In all industries, 287,134 jobs were eliminated during the first quarter, with tech job losses accounting for about 20.7 percent of the total.
“The tech sector is in a state of volatility as companies try to identify and get a jump on the next big thing,” said Challenger. “They are shifting resources around at a breakneck pace trying to keep up with rapidly changing trends.”
