LONDON -- While European technology companies aren't announcing layoffs
on anything like the scale of their U.S. counterparts, there are a few
early signs that Europe's buoyant high-tech job market could begin to
slow.
Recruitment agencies say that demand for skilled technology staff is
still very strong, but the weakening U.S. economy has created an element of
uncertainty.
"There is a little bit of nervousness around at the moment," said Carole
Hepburn, commercial director at Computer People, a pan-European recruitment
agency owned by Adecco SA of Switzerland. Ms.
Hepburn said that U.S. tech companies in Europe are starting to hold off
from recruiting. "It is the first time we have sensed it. We haven't seen
it in the figures yet, but it would take a few months to come through," she
added. Computer People is currently filling 50% more vacancies than this
time last year.
So far, high-tech job cuts in Europe have been on a modest scale
compared with the U.S. Bookham
Technology PLC, a U.K.-based maker of fiber-optic components, said
earlier this month that it may cut 150 jobs or 15% of its work force. The cuts are
in response to Canadian company Nortel
Networks Corp.'s decision to reduce orders for Bookham's Mini-DIL
receivers, which are used in optical networks to direct digital data.
Bookham's announcement came hard on the heels of news from British
computer company Psion PLC that it will cut its
work force by approximately 100 employees. Psion blamed the cuts on the
termination of a project to build a hand-held computer with a built-in
mobile phone.
In November, struggling French technology firm Groupe Bull SA announced another
round of job cuts that will see its headcount fall by 1,800, or 10% of its
work force over 18 months.
Some technology recruitment consultants in the U.K. said it could be
some time before the U.S. economic slowdown has a noticeable impact on the
job market here. "A lot of these companies are not fully staffed up, so
even if they are worried about the economy, they are still recruiting,"
says Geoffrey King, managing director of Cambridge Recruitment Consultants
of Cambridge, England. For example, Mr. King said that in Europe there is
still a chronic shortage of people with skills in designing semiconductors.
"Even though [mobile] handset makers are cutting back, they will work
fiendishly hard to keep these people," he added.
Mr. King said that even if technology companies stop recruiting,
companies in other sectors will snap up skilled staff. His firm is
currently recruiting 800 information-technology staff for the aerospace
industry.