Australia’s tech companies are preparing to lay off more staff to cut costs as they prepare for a tough global economic outlook.
The cuts are being announced as the global economy looks to recover after a period of near stagnation.
In response to a survey by Gartner that found Australian tech firms are facing a $1.2 trillion cost reduction over the next five years, some of the largest tech companies in the country are making plans to slash their workforce to cut cost.
Gartner Research analyst Dan O’Sullivan said the trend of companies cutting jobs is “a growing trend”.
“For the first time in more than a decade, a third of the tech companies surveyed expect to shrink their workforce over the coming five years,” Mr O’Sullys research found.
“This is the second consecutive quarter of job cuts, with a record number of companies considering the decision.
More than half of the companies surveyed by Gertin-Kodec reported they had reduced their workforce by at least one-third since their most recent survey in May.
CEOs are facing pressure from the Government to deliver on its election promises, and are increasingly focused on reducing costs and cutting costs in other areas.
Companies will now have to make the tough decisions of cutting their workforce or cutting costs.
This includes: The closure of the Australian Research Council’s research arm, the Australian Centre for Advanced Computing, the Centre for Digital Entrepreneurship and the Centre of Excellence in Information Technology.
As a result of the closure, the Government is cutting $100 million from the ARC and the National Centre for Research Infrastructure.
It is also expected that the National Energy Market Authority, the body responsible for administering the Australian Energy Market, will have to close the Centre on Demand, which provides electricity supply to remote communities.
There are also plans to close three major data centres.
According to the report, many companies are now also considering laying off staff and reducing investment in new infrastructure, such as the $1 billion National Broadband Network, the $7 billion national broadband network, and the $10 billion Regional Connectivity Plan.
These decisions have a knock-on effect on other industries in the industry.
Mr O’ Sullivan said that if Australian companies don’t act quickly, the outlook for Australia’s economy could deteriorate.
He said the global economic slowdown is “the biggest risk facing Australia” and the “most serious economic threat facing our economy in decades”.
Greens and Labor both say they support reducing workforce numbers and that it is time to tackle the problem head-on.
Topics:technology,jobs,government-and-politics,business-economics-and_finance,industry,internet-technology,education,internet,internet+communications,technology-and.technology,internetaustraliaFirst posted January 09, 2020 07:50:15Contact Emily Stott on Twitter: E.Stott