SageCircle

IDC experiences layoffs – likely more than 20 analysts affected

logo-idc.gifSageCircle has received credible intelligence that IDC has  initiated a job action resulting in analyst lay offs. We will continue to provide updates as we learn new information.

  • Update: 4/17/09 11:18 am PT -Initial post. Sent request for confirmation to IDC’s press office
  • Update: 4/17/09 11:22 am PT – First names added name to analyst list
  • Update: 4/17/09 11:54 am PT – Reports coming in that layoffs will be significant and include both analysts and backoffice personnel
  • Update 4/17/09 12:51 pm PT – Multiple reports that the layoffs will impact 80+ staff, of which 20+ are analysts
  • Update 4/17/09 1:26 pm PT – Name added to the analyst list
  • Update 4/17/09 2:01 pm PT – Name added to list; reports coming in that IDC is holding All-Hands meeting
  • Update 4/17/09 3:22 pm PT – Two names added to list
  • Update 4/20/09 5:03 am PT – Added IDC official statement
  • Update 4/20/09 7:04 am PT – Added name to list
  • Update 4/20/09 7:42 am PT – Added two names to list
  • Update 4/20/09 9:43 am PT – Added name
  • Update 4/20/09 11:50 am PT – Added four analyts to list
  • Update 4/20/09 12:42 pm PT – Added name
  • Update 4/20/09 1:30 pm PT — Added name
  • Update 4/20/09 4:00 pm PT — Added two names
  • Update 4/22/09 12:20 pm PT — Added three names
  • Update 4/23/09 8:19 am PT – Added one name
  • Update 4/28/09 1:57 pm PT – Added one name
  • Update 5/27/09 2:17 pm PT – Added two names

Of course, layoffs impact real people with families and obligations. Often AR people are genuinely friendly with the analysts they work with and this sort of news can be a shock. Unfortunately for AR professionals, analyst firm layoffs also raise important issues that need to be addressed ASAP no matter how much sympathy they feel for the analysts caught in the layoffs.

IDC Official Statement

In an e-mail exchange with SageCircle, IDC Corporate Communications Director Michael Shirer released the following statement:
– Due to the impact of the economic recession, IDC on April 17 reduced its U.S. staff by 82 employees, which represents 5% of IDC’s 1,650 employees worldwide.
– 26 research analyst positions were included in the reduction in employees. This research analyst decrease represents 2% of IDC’s research analysts worldwide. There will be a few, limited changes in research coverage as a result. IDC will communicate with its clients about the changes. IDC is committed to offering the most comprehensive and detailed technology market intelligence available.

– IDC will continue to have more than 1,000 research analysts worldwide which is more than any other technology market intelligence & advisory company. In fact, IDC still will have more research analysts than it did one year ago. For details on recent hiring, please see IDC press release issued on December 8, 2008 indicating that more than 50 new research analysts were hired during the previous six months.

– IDC is focused on providing its clients with the best customer service in the industry. IDC will continue to have the highest ratio of research analysts to client companies in the technology industry.

Background

For background on why firms like IDC are experiencing layoffs please read  Are the vendor-centric analyst firms heading for tough times? Will end-user centric analyst firms do fine? 

This is the third analyst reduction in force at IDC in less than a year. Others were May 2008 and December 2008. 

On March 31, 2009 we reported that Martin Hingley, IDC Chief Research Officer EMEA, was made “redundant” (Martin’s word). That job action appears to be independent of the announcements on Friday, April 17, 2009.

Analyst List

  1. Arcilla, Aileen  – networking semiconductors
  2. Baker, James – storage software
  3. Bakhshi, Shiv – mobile devices trends and technology
  4. Blackmore, Karen – customer operations startegies, Energy Insights
  5. Corbo, Tracy – enterprise communications infrastructure
  6. Giusto, Randy – managed the Consumer, New Media, Computing (PC), Consumer Telecom, and Pricing groups
  7. Gould, Dana – Financial Insights
  8. Hanson, Andrew – security
  9. Hedin, Marianne – services
  10. Holland, Marc – Health Industry Insights
  11. Joslin, Steve – hight end servers
  12. Levitt, Mark – collaboration and enterprise 2.0 strategies
  13. McGinnis, Patricia – corporate banking
  14. Quirk, Kathy – collaboration
  15. Pidgeon, Billy – Consumer Markets: Gaming
  16. Rabkin, Barry – insurance
  17. Rogers, Sandra – Web Services & Integration Software
  18. Sandler, Merle – smb
  19. Schlichting, Wolfgang – storage and enabling technologies
  20. Shiang, David – infrastructure software
  21. Strom, Terrance – IT & Cloud
  22. Wilhide, Kathleen- compliance and business performance management solutions
  23. Haruki, Eric – TV Markets and Technologies
  24. Singh, Meera – worldwide telecommunications

SageCircle is your hotline for breaking analyst newsWhat should you do if one your top ranked analysts is caught in a job action?

This is becoming an all-too-common post these days with frequent job actions — unannounced — by one analyst firm or another. A SageFlash has been sent to clients with recommendations on next steps AR should do. It is further recommended that you set up an inquiry to discuss how to apply these steps to your particular situation. We can do individual calls as well as a teleconference for your entire team.
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Non-clients can quickly and easily sign up for a two-hour Advisory Hour Block for only $495. Please give SageCircle a call at 503-636-1500 if you want to discuss the implications of this layoff.
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16 comments

  1. I can’t comment on the curent situation at IDC. I’ve actually been off for some months unwell and the process started back in the Summer. It would certainly be wrong to imply that this is part of some current campaign. In any case I’m doing well and looking forward to getting some work done. Look me up on Linkedin or email me at Martin_Hingley@yahoo.co.uk.

    Cheers
    Martin

  2. As many people no doubt know, there are significant process differences involved in job actions in Europe that make it difficult to announce departures in the same way as they take place in the US. Some firms have stumbled very badly over these and caused difficulties for themselves. So I would not be surprised if there is more action that won’t be apparent in the first announcements.

    AR folks should check in with their contacts next week and see what effect any changes are having, as Carter suggests.

  3. No doubt these decisions were made purely on which analysts missed their P&L targets. Randy Giusti and Mark Levitt are two of their very best, and most respected, analysts. They will surely find new roles in IDC’s competitiors. Most analyst firms seek to keep their best analyst talent and layoff the poor quality performers in a down market. Not IDC though… no doubt the layers of VPs who spend their days staring at a P&L spreadsheet and not doing any actual research, or taking care of clients, survived.

  4. Well said Steve. I believe IDC is doing the same in Asia/Pacific. Lay offs in AP started last year and VPs have already come up with a list of staff from AP who will most likely get chopped if things don’t shape up.

  5. I think it is a rather unpleasant invasion of these folks’ privacy to post their names like this – perhaps they don’t want their employment status broadcast to the world. What purpose does it serve? Couldn’t you accomplish your objective without the names?

  6. Hi Cheryl, Thanks for the comment.

    This is something we struggled with last year when we first reported on analyst firm layoffs. Initially we did not list names. However, we changed this policy for the following reasons:

    * Analysts want to get the word out that they are available — Most analysts who get caught in a WFR immediately start using social media (e.g., LinkedIn, Twitter and their personal blogs) to start networking. Often analysts will contact SageCircle asking to be put on the “Analysts in Transit” list because we are just another way for them to advertise their availability. In fact, some laid off analysts have been hired because of the visibility in these articles (we get contacted by firms looking to hire asking if we have email addresses for these newly available analysts)

    * Analyst firms will rarely admit they cut analyst headcount – The only thing that analyst firms really sell is access to really smart people. Because of that they are loathe to admit that they have reduced their workforce. However, this is crucial information for enterprise clients and vendors covered by the analysts. These stakeholders need to know if criticial analysts are being let go. I cannot tell you the number of times enterprise clients and vendors have been blindsided after signing a contract or given a sensitive briefing by the departure of key analysts.

    * There is no stigma in this economic environment to being laid off

    In fact, we have never received a complaint from an analyst listed. We do get notes to correct some factual error and sometimes we even get thank you notes.

  10. IDC seems to be making these announcements much after their competitors. Is there any information on the job actions for their units in EU or AP?

  11. Lay offs for the Asia Pacific region have started. The exact number of people being laid off is not yet known but every country and every division will be affected I suspect. I trust an official press release on this matter will be issued soon.

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