Posts Tagged layoffs

How low will IT go?

As a reaction to the world’s financial crisis ,China’s IT market suffers from recession as well. The main reason is that the number and scale of incoming orders sharply decreased during the past 12 months, forcing IT companies to cut-down salaries, employees, development plans and social benefits. There has been an acute increase in the job seekers number. Only in the IT industry of Pearl river delta region, the number of job seekers increased sharply and is reported to be 20% more than the market demand. Therefore, it is extremely hard for job seekers in this field to find a new job, and most of the time, even when they do find a job that fits their skills and profession, the salary is much lower.

The enterprises try to find alternative solutions to avoid frequent layoffs through steps like extended holidays, shorten the working hours, reducing salary level etc. These solutions are meant to keep the workers in the company, and to preserve their skills and knowledge, with the lowest salary level possible until the crisis will be over, new orders will arrive and business level will increase again

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