Image via CrunchBaseBarons, Computer World and an IBM specific blog are all abuzz about possible layoff rumors at IBM this morning. While Microsoft layoff rumors persist, an additional 16,000 possible layoffs at IBM would mean another 28 to 31 thousand layoffs in the technology industry that are in the rumor mill.
Layoffs are hard to work through, but adding uncertainty with rumors (even if the Microsoft one is not true, or the IBM one is not true) what this does is lead people who can leave to leave first. No sense in being fired, uncertainty in the future of your job is going to make people leave anyways. There are some reports that when you cut 10% of your work force, the company will actually lose more than the 10%, on order of 15 to 20 percent of the work force in total will take a hike. Often those that go are the best and brightest, leaving the companies struggling to maintain some form of continuity in their operations.
IBM is a huge employer and a layoff there will send shudders through the IT Industry as a whole, meaning other companies are going to also get involved in rumor mills, or actual layoffs as 2009 progresses. This is not going to be a good year for employees anywhere. The good part is that many of the startups have already pruned, and might be able to pick up extraordinarily talented people to help them with their products at low wage scales if there is room to hire.
This also means that come the end of 2009, going into 2010 all the potential that these employees represent could mean that there will be a resurgence in startups with some excellent ideas, and the time to devote to them. 2010 could be an excellent year for startups if the Angel and VC funds can start funding, or if what people are making off state unemployment insurance can pay the bills while the startup is getting going.
2010 could be an excellent year for some awesome new ideas to hit the internet. In the mean time, casual games, IPhone Applications, and other pay to download software might also be a good thing to be moving towards right now.
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I would like to see IBM startup with a Sam Palmisano layoff, this Turd Ferguson has done little but line his pockets and use the excuse of his poor performance to fire people.
Hope he has the colon cancer gene.