NEW YORK (Reuters) – Cisco announcement on Wednesday (17) that plans to lay off 5,500 employees probably will not be the last of the kind facing a scenario where hardware companies face difficulties to adapt to rapid changes in the technology market, say analysts and human resources specialists.
Companies that traditionally obtained most of its money selling computers, chips, servers, routers and other equipment are especially vulnerable, analysts say, as mobile applications and cloud computing services become increasingly important.
the announcement of layoffs at Cisco came after Intel announced plans in April to 12 dismissal thousand workers. Before that, Dell said in January that cut 10,000 employees and hoped to make further reductions after completing the acquisition of EMC data storage company for $ 67 billion.
So far this year, technology companies in the United States eliminated about 63,000 jobs, according to Challenger consulting, Gray & amp; Christmas.
Deconstruction
“The technology industry is going through a serious deconstruction,” said Trip Chowdhry, Global Equities Research analyst. “There is more to come.”
Chowdhry said it expects the layoffs to increase sharply as more companies opt for cloud computing services provided by companies such as Amazon.com and Microsoft. These services are specialized in management of hardware, software, networks and databases and eliminate the need for workers responsible for managing each of these levels, he said.
In January, Chowdhry estimated that layoffs in the industry technology will add 330,000 this year. On Wednesday, he raised the estimate to 370,000. Some other analysts say this forecast is too pessimistic.
IBM, Hewlett-Packard Enterprise, Oracle and Dell may be the next to make announcements of layoffs, analysts say.
Representatives Hewlett-Packard Enterprise, Dell and Oracle declined to comment. Contacts with IBM could not be answered immediately.
“No one wants to hardware designers and engineers,” said Andy Price, the executive search SPMB company. “There was a time when the hardware was on top and GoPro (manufacturer of sports cameras) left everyone excited about devices, but many of these companies died along the way,” he said.
Currently, says Price, ” hardware engineers are probably the least attractive career in the Valley (Silicon), “he added.
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