calculate, isn't it?
By Jennifer Hazen
question seems to be the most asked question today in the ESD world.
Anyone who has been watching the news section of the ESD Journal
has seen several of our ranks either go away or suffer severe cutbacks.
From JIT to Sterling to UTP to Lucent the story looks bleak for
our industry. The companies whose stocks were so desired a few months
ago are trash today. Is there light at the end of this tunnel or
is that the oncoming train?
Most companies do not wish to be quoted but the ranges we are hearing
for business slow down is from 30% to 70% on the average. Of course
this is devastating for many even to the point of bankruptcy. Many
of the large companies in our industry have laid-off more than 20,000
people each. How long will this last? Will it cause the Symposium
attendance this year to be down?
Send us your comments on the outlook
for business for our industry. We will post them as they are received.
There does seem to be some hope in
the latest numbers but one has to look hard.
According to a report by Linda Rosencrance,
Computerworld online, ----- While Dot-com layoffs are at their
lowest level since last November, Challenger, Gray & Christmas
Inc.(a recruiting firm) says overall job cuts in the U.S. are up
According to the Chicago-based firm,
which tracks job-cut announcements daily, layoffs at Internet-related
companies fell for the second consecutive month in June, to 9,216,
a decrease of 31 percent from May's 13,419 cuts. Layoffs in May
fell 24 percent from April's record high of 17,554. June's cuts
are the lowest since last November's 8,789.
Despite this decline, the staff reductions
this June are significantly higher than the 1,652 recorded in June
a year ago, the company noted.
June's numbers brought the six-month
job-cut total to 74,199, more than 14 times higher than the 5,097
cuts recorded during the same period a year ago.
For the fourth consecutive month, Internet
technology firms led all other dot-com categories, with 5,817 jobs
eliminated. Dot-coms offering professional services such as advertising,
marketing and consulting had 1,185 cuts in June, while consumer
service firms reported 1,130.
"We are seeing more job cuts from well-known
companies vs. the mom-and-pop category that seemed to dominate the
earlier waves of dot-com cuts," said John Challenger, the outplacement
firm's CEO, in a statement. "It would appear that many of the smaller,
independent dot-com firms have been swallowed up by their larger
competitors or have fallen into bankruptcy and eventual closure."
Meanwhile, in a report released today,
Challenger said overall job-cut announcements by U.S. companies
rose 56 percent in June, to 124,852, up from 80,140 in May, bringing
the six-month total to more than 770,000. Challenger said this is
the sixth time in seven months that layoffs exceeded 100,000.
According to Challenger, this June's
job-cut numbers increased 624 percent compared with June of last
year, when job cuts totaled 17,241 -- a three-year record low. Job
cuts in the first half of 2001 totaled 777,362, 27 percent higher
than the 613,960 layoffs reported in all of 2000.
Challenger said the telecommunications
industry led other business sectors with 27,446 cuts in June, bringing
its six-month total to 130,442. The number was 49 percent higher
than the second-ranked automotive industry, which reported 87,613
job cuts this year. The computer industry reported 74,723 job cuts
for the year, while industrial goods had 59,496 and electronics
The jobs eliminated in June include
4,006 in the automotive industry, 8,950 in the computer industry,
22,698 in the industrial goods area and 7,515 in electronics.
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