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Monday, November 5, 2007

Corporate Layoff: a Convergence of IT & Real Estate

Last week, I received news that a former client (Bluelinx Corporation) had laid off many from their staff. I’ve heard that their target goal was pretty significant, but I don’t know exactly how many people have been let go.

This former division of Georgia Pacific is the US’ largest distributor of building supply products; the layoffs are no doubt tied directly to the problems in the US housing market and the slow down in new home starts.

I have several friends in the IT department there, and some of them are now contacting me as they start to network. Of course I wish them the best, and am diligently trying to help them with their search for new jobs.

My two points with this article are that:
1. No job is secure. Many of these folks had been with GP/Bluelinx for years, and were quite comfortable in their positions.
2. It is not a home builder’s or seller’s market, but one can infer that it is a buyer’s market.

Also, after years of observing companies like this who cut back to improve the bottom line, I know that all things are cyclical. One day, someone will realize that there is a ton of work to do and no one to do it, and resources will be hired. Contractors initially, then “permanent” employees. Of course we know that no one is truly permanent…

JMK, The IT Entrepreneur

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