Tech sector job cuts in USA slow in second quarter: Survey

Computer technology job cuts declined 60 percent in the second quarter, ending June 30, compared with the first quarter, according to a survey released Monday.

Planned layoffs announced by computer, electronics and telecommunications companies totaled 33,890 in the second quarter, according to Chicago-based Challenger, Gray & Christmas Inc., an consultation firm.

That was down 60 percent from the previous quarter when tech-sector job cuts reached 84,220, the highest level since the fourth quarter of 2002.

The second-quarter figure is nearly equal to the 33,650 job cuts announced during the same period a year ago.

Despite the second-quarter decline, tech-sector job cuts for the first half of the year reached about 118,100, which is the largest six-month total in seven years.

The second quarter improvement may be signaling a turnaround for an industry that has been impacted heavily by the recession, according to Challenger, Gray & Christmas.

However, Ann Gallaher, chief operating officer at Dayton-based industry group Technology First, said it also could be that companies have aligned expenses with income, thus reducing new layoffs.

“I think people were told to cut by ‘X’ percent, and now they have done that, and they are living within the budget that they were allocated,” Gallaher said. “Things will have to get worse before there will be a second round (of layoffs).”