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Thursday, October 11, 2007
Tech job cuts ahead?
Most techies had a little more job security this year than they did a year ago - but the outlook isn’t too rosy for all.
Computer, electronics and telecom companies announced plans to cut about 26,200 jobs in the third quarter of this year, down 19 percent from the comparable quarter last year, according to a survey released Thursday by outplacement firm Challenger, Gray & Christmas Inc.
Through the first nine months of this year, tech industry job cuts were down about 24 percent from a year ago.
Some areas were harder hit than others, and there are some signs of trouble ahead, though, according to the Chicago outplacement firm.
Semiconductor companies and other nuts-and-bolts electronics manufacturers announced 21,200 job cuts in the third quarter of this year - up 127 percent from a year earlier.
“The worry is that the job cuts in the electronics industry represent the canary in the coalmine warning us of bigger problems ahead,” John Challenger, CEO of the outplacement firm said in a news release. “After all, this (sector) provides many of the materials and components that go into computers, cell phones and other technology products.”
Furthermore, Challenger said, economic uncertainty and credit issues are causing some companies to postpone or consider postponing purchases of equipment such as computers. As a result, “conditions seem ripe” for more job cuts in the tech sector.
“The third-quarter decline in computer cuts may be the calm before the storm,” said Challenger.
Just in time, perhaps, for the holidays.
Is Microsoft headed toward a virtual world?
Microsoft Corp. has been exploring the business of virtual worlds and social networking for months, and could launch its own entry into the realm of “Second Life” or “Ultima Online” within a year, a top Microsoft executive said.
“By next year, you’ll probably know more about why I’m up here,” Daniel Schiappa, general manager of strategy for Microsoft’s entertainment and devices division told attendees at a virtual worlds conference in San Diego.
In an interview later, Schiappa expounded a little. He hinted that Microsoft is considering launching some sort of virtual world offering that would span across its gaming, PC and mobile device offerings. Most likely, any foray by Microsoft into the world of avatars or social networking would begin with PCs, then move across its Xbox gaming business and finally into its mobile phone business, Schiappa said.
Don’t think that Microsoft, the purveyor of lowly Word and Excel can compete against the super-hip companies behind virtual worlds like Second Life and Kaneva?
Remember that many thought that Microsoft didn’t stand a chance in the video game business - back before its Xbox 360 and titles like Halo 3 became top-sellers.
Schiappa declined to give more specifics about Microsoft’s virtual world plans, but hinted that anything Microsoft does will likely involve its Virtual Earth mapping platform and probably its robust video game business.
Microsoft rival Google Inc. is also inching closer to virtual worlds, most recently by letting virtual world creators tap into its Google Maps and Google Earth programs. Many who watch the industry say Google may jump in with a bigger virtual worlds offering in coming months.
Schiappa acknowledges that Microsoft might be late to business, which today is dominated by the likes of Second Life and Atlanta-based Kaneva and massively multiplayer games like World of Warcraft, Ultima Online and Lineage.
“It’s definitely a concern,” he said.
“But I think we’ve got a good understanding now of the landscape, we have a strategic plan in mind … now we have to decide how we follow-through,” Schiappa said.
“If a year from now we don’t have anything, then we probably won’t have anything,” in the virtual worlds space, he added.
