IT jobs cuts will not help ‘loosen skills bottleneck’On 24 Apr 2001 in Personnel Today Previous Article Next Article Job cuts in the technologysector will not tackle its severe skill shortages, a recruitment company haswarned.IT staffing companyPlexian claims that the current round of job cuts, by companies such as Philips,Ericsson and Cisco, will not release new talent into the job market. Roy O’Brien, directorof Plexian, said, “The majority of staff being shed is at more juniorlevels such as the relatively unskilled helpdesk staff or junior programmers.The biggest shortage of skills is at the higher end of the skills market.”Restructuring atPhilips, Ericsson and Cisco could make more than 12,000 staff redundant. Manyof these will be staff with outdated skills or low skill levels.O’Brien said, “Alot of the redundancies can be seen as cutting back corporate fat. We’ll onlysee a significant loosening of the skills bottleneck once companies are forcedto cut more aggressively into healthy bone and muscle.”We are seeingsome senior staff being released, but not nearly enough to put a dent incurrent demand.”Consumer electronicsmanufacturer Philips reported a slump in profits of 82 per cent for the firstquarter of 2001. The company warned that the hard times could continue in thenext quarter following the economic slowdown in the US.There is speculationthat Ericsson could cut 6,000 jobs to tackle profitability, and Cisco issued aprofit warning last week along with plans to lay off 8,500 people.Other cutbacks in theTMT sector this year include Intel cutting 5,000 jobs, Nortel announcing 15,000job cuts and Motorola deciding shed a further 4,000.O’Brien says the cutsare unlikely to last long. Research published this month by the IT Associationof America estimates that 900,000 new IT jobs would be created in the US thisyear, compared to 1.6 million last year. By Richard Staines Comments are closed. Related posts:No related photos.