Issue of the Day: TECHNOLOGY LAYOFFS

Today’s announcement that CA Inc., the second largest software maker for mainframe computers, will be reducing its workforce by 1,000 may cause some to speculate that more tech-sector job cuts are on the horizon. The cuts, however, may not be indicative of a wider trend, as the company relied heavily on the devastated financial sector for its business. Overall, planned job cuts in the technology sector, including telecommunications, computer and electronics firms, are down 73 percent from a year ago. Through the first quarter, tech firms announced 22,338 job cuts, compared to 84,217 in the same quarter of 2009.

Unfortunately, fewer job cuts do not necessarily mean a tech jobs turnaround. Hiring has been slow to recover. Additionally, many of the tech-sector workers who remain employed are working harder for less pay. The 2010 Salary Survey just released by trade publication Computerworld found that bonuses and benefits are down significantly, while workloads and work hours have increased. Meanwhile, the survey discovered salaries are stuck in the mud, having risen by just 0.7 percent on average.

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