Global Equities Research
KEY MESSAGE: Over the Next 12 months Technology Sector alone will layoff or let go about 333,000 employees
REASONS: For potential 333,000 layoffs in technology sector alone
- Technology shift to Cloud Native and Mobile Native applications
- Improving IT Efficiency by Micro-services, On-Demand and Spot Pricing
- Value Migration from Technology Integration to Domain Specific Expertise
- Consumer behavioral Shift
The following figure comprehensively illustrates the Industry shift that is going to cause about 333,000 layoffs in the Tech Sector alone and NY Fed Bill Dudley is totally clueless:
- 70% of the current work which requires Back Expertise, Products and Services is going to get reduced to 30%, and will result in massive 333,000 layoffs in the tech sector
- Sadly, the new jobs in Functional/Customer Domain will not be immediately filled, as those skills are scarce and the educational system is behind the curve
DETAILS OF COMPANY SPECIFIC LAYOFFS:
We estimate the following companies would layoff a total of 333,000 employees over the next 12 months or so:
- EMC (EMC): Total Employees: 70,000: Between 15% to 20% layoffs = between 10,000 and 14,000
- VMWare (VMW): Total Employees:17,000: Between 10% and 15% layoffs = between 1,700 and 2,500
- HP Enterprise (HPE): Total Employees 240,000: about 30% layoffs = about 72,000
- HP Inc (HPQ): Total Employees 287,000: about 30% layoffs = about 86,000
- IBM (IBM): Total Employees 379,000: about 25% layoffs = about 95,000
- Cisco (CSCO): Total Employees 72,000: about 20% layoffs = about 14,000
- Juniper (JNPR): Total Employees 8,800: about 15% layoffs = about 1,300
- Oracle (ORCL): Total Employees 132,000: about 20% layoffs = about 26,000
- Microsoft (MSFT): Total Employees 118,000: about 15% layoffs = about 18,000 (Microsoft is letting go about 200 to 250 people every week, and none of these are ever announced)
- Network Appliance (NTAP): Total Employees: 12,800: about 15% layoffs= about 1,800
- Symantec (SYMC): Total Employees: 19,000: about 15% layoffs = about 2,800
- F5 Networks (FFIV):Total Employees: 4,500: about 10% layoffs = about 450
- Yahoo: Total Employees 12,500: about 30% layoffs = about 3,500
