Information technology personnel layoffs in US organizations: An exploratory investigation

Authors:
C. Ranganathan;Kedar Samant
Affiliations:
Department of Information & Decision Sciences, Liautaud Graduate School of Business (MC 294), University of Illinois at Chicago, 601 S Morgan St., Chicago, IL 60607, USA;Department of Information & Decision Sciences, Liautaud Graduate School of Business (MC 294), University of Illinois at Chicago, 601 S Morgan St., Chicago, IL 60607, USA
Venue:
Information and Management
Year:
2006

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Abstract

The new century has been marked by an unprecedented number of layoffs of IT personnel. But despite the increasing industry concerns over IT worker downsizing, the knowledge base and scholarly literature on IT personnel layoffs has been sparse. This paper suggests some exploratory, descriptive insights into such downsizing efforts. Data on 569 layoff events in the US for years 2000 and 2001 were gathered and analyzed to help gain an understanding of the phenomenon. We examined the trends in IT personnel layoffs over time, across different industries, their nature and extent, the stated reasons given for downsizing and the financial environment of firms laying off IT workers. The findings and their implications are discussed.