Workers at some of the biggest tech companies may have a reason to be nervous, according to an analyst report that predicts 261,800 positions at those organizations may be collectively cut in 2016. With that number of projected layoffs, it would be on par with doling out pink slips to approximately a quarter of the residents of San Jose, Calif.
Global Equities Research Analyst Trip Chowdhry said he pulled together layoff predictions, in part, to send a message to New York Federal Reserve Bank CEO William Dudley that his desire to see interest rates raised on the back of strong labor demand this year was unfounded.
According to Chowdhry, 10 tech companies are likely to take the largest swipe of the ax to their workforce, based on one or more of these four factors:
Although Chowdhry is predicting 261,800 layoffs at tech companies this year, Toni Sacconaghi, a senior research analyst with Sanford C. Bernstein, doubts the depth of the layoffs at IBM will reach the levels that Chowdhry is projecting. Chowdhry's estimate is nearly seven times larger than Sacconaghi's estimate, for example.
Additionally, while these tech titans are expected to lay off thousands of workers this year, they are also hiring. IBM, for example, has 877 information technology jobs posted on its site, and Hewlett Packard Enterprise lists 270 information technology jobs. In corporate America, it is a fairly common practice that as a company slashes its staff, it will hire new workers to focus on areas of growth.
In developing his layoff estimates, Chowdhry acknowledged he had to revise his overall layoff estimates lower because his employment figures for HP Enterprise and HP did not initially account for the company's split. (The numbers in this story reflect his revisions.)
Regardless of the HP and HP Enterprise snafu, Chowdhry established a methodology to put each company into one, some, or all of four buckets that explain how tech titans can find themselves in a conundrum. Here are the top 10 tech companies that Chowdhry expects will see massive layoffs this year. Take a look and let us know what you think. Does this list make you nervous about your own job security?Dawn Kawamoto is an Associate Editor for Dark Reading, where she covers cybersecurity news and trends. She is an award-winning journalist who has written and edited technology, management, leadership, career, finance, and innovation stories for such publications as CNET's ... View Full Bio