13,000 tech jobs disappear in one day

Tech jobs are disappearing in their thousands as shares continue to fall

Around 13,000 jobs in the technology industry were cut on Thursday 4 December alone, and industry forecasts suggest that the near future is not looking bright.

Online video software firm Real yesterday announced that it will cut 7.5 per cent of its employment base, which amounts to around 130 staff.

"The layoffs, in addition to other cost-cutting measures, are part of a budgeting process intended to bring expenses in line with current and prospective economic realities," said Bill Hankes, corporate communications vice president at Real, in a blog posting on the company site.

"While our business has not been affected as much as others, we are not immune to what's going on in the broader economy."

Digital media firm Viacom said in a statement on Thursday that it will reduce its headcount by approximately seven per cent, or 850 positions, and will suspend senior level management salary increases for 2009.

"The changes we are making in our organisation and processes will better position Viacom to navigate the economic slowdown," said chief executive Philippe Dauman.

But the biggest cuts by far came from telecoms giant AT&T, which announced that it will cut roughly 12,000 employees from its ranks. The reduction accounts for some four per cent of the company's staff, and could cost $600m (£407m) in severance expenses.

On the same day, Nokia announced cost-cutting measures and lowered its estimates of fourth-quarter market share of mobile devices, which it said was unlikely to meet its third-quarter share of 38 per cent.

"The industry continues to be impacted by the effects of a global consumer pull-back in spending, currency volatility and decreased availability of credit, " said a Nokia statement.

But the phone company has plans to increase its market share in 2009, including its share in smartphone devices, which analyst firm Gartner said yesterday had reached their weakest year-on-year sales growth since it began tracking the industry.

"The current economic climate is negatively impacting sales of higher-end devices," said Roberta Cozza, principal analyst at Gartner.

"Although leading mobile operators are subsidising more smartphones to reach lower prices, they tie the device to two-year contracts with monthly data plan rates which remain too expensive for the mainstream user."