Cisco Systems, the world’s largest networking company, announced on Wednesday its fourth-quarter earnings report. The company posted strong revenue and profits but said it was cutting 5,500 jobs or 7% of its global workforce.
Cisco becomes the latest company to join the list of tech businesses to cut a massive number of jobs in 2015-2016:
- Hewlett-Packard Enterprise 30,000 jobs cut
- Intel 12,000
- Dell 10,000
- Microsoft 7,800
- Seagate Technology 6,500
- Cisco 5,500
The job cuts are necessary to shed some staff in order to bring on new employees with the skillset needed in today’s market. The networking skills needed in 2016 is drastically different from the skills that were needed just five years ago in 2011.
Microsoft (MSFT), Hewlett-Packard (HPQ) and Intel (INTC) have already slashed more than 100,000 jobs over the past 12 to 14 months, according to data from Challenger, Gray & Christmas, and that number is rising.
What’s even more troubling is the U.S. is nearing full employment, yet it is not being fueled by quality jobs and innovative sectors. Last month, private sector employers added 288,000 jobs however a small fraction of those, 8,000 or so, were computer related.
So the question becomes, why is the United States handing out high-tech H1B visas to foreign workers by the tens of thousands each year? Many of the same tech companies who are dropping American workers are paying millions of dollars to lobbyists who push D.C. politicians to increase the number H1B visas.
According to a recent report on Bloomberg News, 2/3 of human resource managers at tech companies claim they cannot find American workers to fill job openings in science, technology, engineering and mathematics (STEM). But how can this be true with so many IT workers being laid off? Furthermore, American universities are pushing out more STEM graduates each year than jobs available in the U.S.
Dennis Michael Lynch, who owned and operated a tech business for more than a decade, argues that companies can find American STEM workers but they prefer to recruit cheap labor from overseas. In the video below, DML gives details about how Donald Trump will curb H1B programs that deny Americans the jobs they deserve.
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