By Tess Stynes
Layoffs announced by U.S. employees in the technology sector
more than doubled in the second quarter, reaching the highest level
in a year, according to new data from consulting firm Challenger
Gray & Christmas Inc.
During the period, the computer, electronics and
telecommunications industries announced plans to cut a combined
20,491 positions, up from 8,392 during the first quarter, but down
from 39,164 a year earlier.
The second quarter included layoff plans from tech giant
International Business Machines Corp. (IBM), which is expected to
cut as many as 8,000 workers after the company posted disappointing
first-quarter earnings, according to Challenger.
Computer firms reported the highest number of planned job
cuts--at 16,404--up sharply from 3,526 during the first quarter.
Cuts by electronics firms surged 68% to 2,344 from the previous
quarter. However, planned telecom cuts were down by half at
1,743.
Still, for the first half of 2013 the pace of job cuts has
slowed from the year-earlier period, down 44% at 28,883 announced
job cuts.
"The uptick in tech job cuts we saw in the first half of the
year appeared to be due primarily to shifting trends in the
computer and information technology industries, which are making it
necessary for companies to alter business strategies, streamline
operations and restructure their organizations," Challenger Chief
Executive John A. Challenger said.
For example, a shift toward cloud computing and big data
factored in workforce reductions announced during the quarter by
information-technology company CA Inc. (CA) and data-storage
provider EMC Corp. (EMC).
"The second half of the year could see even more job cuts in the
technology sector, as at least one forecaster cut its forecast for
global IT spending this year in half due to slowing PC sales," Mr.
Challenger said.
"If sales of equipment, software and services do slow, expect
more companies to react with planned layoffs," he added.
Write to Tess Stynes at Tess.Stynes@dowjones.com