Layoffs Up in May

US employers announced 71,115 layoffs in May, up 32 percent from the same month a year ago. While the pace of job cutting is less than last year, the gap is closing, according to outplacement consultants Challenger, Gray & Christmas. The 337,773 job cuts announced by employers so far are 8.5 percent lower than for the same time in 2006. Heavy downsizing in the computer industry (-13,631 jobs) dominated May job cuts, followed by the automotive sector (-7161). The financial sector (-4804 jobs) has suffered the most cuts for the year, due in large part to the housing market slowdown and the collapse of the sub-prime lending market. Other industries cutting back include pharmaceutical, healthcare and media.

On the Job Front

NATIONWIDE – Wachovia Corp plans to hire nearly 300 private bankers to cater to affluent customers. Staff will be added in Florida, Texas, California and New York.

STATEWIDE – Wells Fargo Bank hopes to retain all 650 workers employed by Placer Sierra Bancshares following consolidation of the banks this summer.

BAY AREA – Jobs for accounting and finance professionals will grow 7 percent in the third quarter, according to a survey by Robert Half Financial, a staffing firm.

DAVIS – Should 500 food-service workers at UC Davis become university employees or remain working for an independent contractor? Students and workers have staged protests to convince the administration that workers need better play and benefits, which UCD would provide.

EL DORADO HILLS – Amdocs, a developer of business software, is laying off up to 50 workers at its local office and in Charlotte, NC, after business orders fell short of expectations.

FOSTER CITY – Sony Corp announced it is cutting an estimated 50 to 100 jobs in its US games division, which employs 1600 workers. Cuts follow disappointing sales for the company’s newest model, PlayStation 3.

REDWOOD CITY – Openwave Systems, producer of telecom software, is cutting 20 percent of its staff as it fends off a buyout offer from a minority stockholder.

SACRAMENTO – 18 percent of chief IT officers say they plan to hire in the third quarter, according to Robert Half Technology. Only 3 percent plan to reduce staff. The staffing firm says many local companies are expanding and intensifying the competition for top talent by "devoting greater resources to attracting and retaining employees."

SAN FRANCISCO – A new sick-leave law took effect last week, giving employees one hour of sick leave for every 30 hours worked. Workers get the benefit no matter their immigration status or if they only work part time.

SAN JOSE – 60 newsroom positions will be axed at the San Jose Mercury News this summer, a 24-percent cutback.

SANTA CLARA – Macrovision Corp, developer of electronic copy prevention, is laying off 54 employees, about 7 percent of its workforce, as it restructures its business.

SILICON VALLEY – Proposed legislation that would overhaul US immigration laws includes a provision that high-tech leaders blasted as Soviet-like. Under the new proposal, tech employers would not have the freedom to choose any immigrant they like, but would pick from a pre-selected applicant pool. The new law would also increase the paperwork and costs surrounding the use of H-1B visas, the temporary work permits granted some high-tech workers.