IT jobs will be affected by Lehman Brothers' bankruptcy, says firm

by Editor 9/18/2008 2:54:00 PM
IT professionals will be affected by the Lehman Brothers' bankruptcy and Bank of America's buyout of Merrill Lynch in more ways than one, say the analysts at Janco Associates.

The turmoil in the banking sector and the news that Hewlett-Packard will cut 24,600 jobs over the next three years will “glut the IT job market,” according to Janco officials. Their sources within Merrill Lynch and Lehman Brothers have confirmed to them that a significant number of IT professionals in both companies will be left without a job by the end of the year. More accurately, over 230 IT staff at Lehman Brothers and 180 IT professionals at Merrill Lynch with annual earnings over $250,000 will lose their jobs by the end of 2008.

Janko Associates CEO Victor Janulaitis says: “Hiring was up across the nation as companies begin to focus on business expansion with a cautious eye toward the economy. However, with the recent events that outlook has changed drastically.”

Furthermore, Janco estimates that out of the 24,600 employees Hewlett-Packard will let go of in the next three years, following the company’s acquisition of EDS, about 12,300 will be U.S.-based staff, so the total number of IT jobs that will be cut is closer to 13,000.

Janulaitis explains: “High-paying jobs within the IT function are targeted when companies go bankrupt or are acquired. High-paying middle-layer jobs are viewed as sources of immediate cost savings.”

Find the latest IT consulting vacancies on the TopITconsultant job board.

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