Study finds big rise in job cuts planned at IT shops

But the numbers could have been even worse, according to Computer Economics

Forty-six percent of North American IT shops are planning to cut positions this year, up from 24 percent last year, with one-quarter planning to slash staff by 10 percent or more, according to a newly released study by Computer Economics.

The findings indicate widespread doubt among IT executives that the recession will end soon.

Only 27 percent intend to increase headcount, and another 27 percent plan to keep staffing levels flat, the study also found.

The Irvine, California, research firm also found that the majority of IT budgets are either flat (17 percent) or decreasing this year (38 percent). Forty-five percent of respondents reported their budgets will grow this year.

Although dire, the numbers do not necessarily set a precedent.

In 2002, following the 2001 recession, only 36 percent of IT shops said budgets would increase, according to Computer Economics.

"This indicates that the current recession, though reportedly more severe than any since the Great Depression, is actually not as acute in terms of IT spending as the 2001 recession," the report states.

The difference is likely because the years prior to the 2001 recession were marked by rampant IT spending driven by the dot-com bubble and other factors, making the sector vulnerable to cuts, Computer Economics said.

Meanwhile, current economic woes are spread across other areas, such as real estate and banking.

IT cuts could also be worse if IT executives, apparently learning a lesson from the previous recession, had not held down spending growth in recent years, the firm added.

Computer Economics polled 202 North American IT executives in the first quarter of this year.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags jobsresearchjob cutsIT jobssurveysComputer Economics

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Chris Kanaracus

IDG News Service
Show Comments

Brand Post

Bitdefender 2019

Shop safely with our award-winning security solution. Protect yourself this Black Friday and get the exclusive Black Friday discount for Bitdefender 2019!

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?