Seattle Bubble Forum Archive

Not sure how many have seen this nifty little resource over at the PI.

http://seattlepi.nwsource.com/venture/layoff.asp

It tracks layoff announcements in the high tech sector

Interesting roll up of stats:

Year /# announced/# jobs
2004 23 967
2005 29 2350
2006 25 1250
2007 26 1214
2008 13 480

Half as many layoff announcements already this year (in Feb) as there were in all of 2005 or 2006

Hmmm,

Hey Tim, how about (can't believe I'm actually suggesting this) a poll to see how many SB readers are concerned about being included in a layoff or are concerned about the stability/security of their job, in the next year.

Just speaking for myself, I am concerned that my job could disappear (the whole company of 25 people, really) within the next year. I don't like it.

Looks like Biotech and Pharm are bearing the brunt of the cuts thus far, with venture funded software and telecom rounding out the rest.

I saw a short news segment a few nights ago that talked about the possibility of recession. Basically they had some local "economist" on that said that the rest of the country might go into a recession but Seattle would be okay because of tech. So what is it that inspires people to have such confidence in the tech sector? Does it have a track record of doing fine during downturns?

Many tech companies can thrive in a downturn because well-executed IT improvements can save companies the money they need to survive the downturn. When companies look to cut costs, they often consider IT improvements, esp. ones that can eliminate staff elsewhere.

Who cares about High Tech.... I would be more concerned about the 3 1/2 hour morale boosting exercise at Starbucks today.

This reminds me a lot of when I worked for Egghead in Issaquah, right when Terry Strom came in to "save" the company.

But hey, Seattle will always have things like the Craigslist Missed Connections where you can tell your cute Starbucks barista that you are the double tall soy chai latte or whatever and you think she/he is hot.

Hehehe!

I just read the link. I was RIF'ed (i.e., laid-off) by Amgen in Oct 07. Those Oct layoffs are not reflected in the tracker unless there is some sort of reporting delay. BTW, there are more lay-offs coming (inside info) that may or may not include Amgen WA. These lay-offs will either occur in the Mar/Apr timeframe.

Not a bad theory redmondjp. But how about we try this on for size. MS had major releases for its two most profitable lines last year. Under normal circumstances, this would probably cause a lot of upgrades (via your upgrade wave). But combine that with DJO's theory of reduced tech spending and you see something a little more benign over all.

[quote=Markor]An example of an IT improvement: Remember when the check-in clerk at the airport took your ID & ticket and then typed what seemed like hundreds of keystrokes? Now on Southwest I check in by simply inserting into a slot the credit card I bought the ticket with. I read that those old paper tickets used to cost $8 apiece including processing costs.[/quote]

I agree completely that companies will continue to make these kind of moves. But I don't care what kind of market we are in, if a company can save 2% per transaction with a little hardware (is a $400 airline ticket for domestic flights about average?), they will make the move. I don't disagree with the assertion that tech can cut costs. I only assert that not all tech cuts costs, and that any tech that does significantly cut costs while not harming customer satisfaction will be adopted rapidly in any market. I don't see the modern or historical trend that tech is a hedge against recession.