The next threat to your job is already looming on the horizon. It could come into play as early as the second half of 2007 -- even if the economy as a whole stays relatively strong.That would be a huge reversal of recent good news on job losses in the U.S. Layoffs announced in 2006 fell by 22%, according to a survey by outplacement specialist Challenger, Gray & Christmas. The number of layoffs in the Challenger survey was down 57% from the peak in the current layoff cycle that began in 2001. The Challenger survey isn't especially comprehensive, since the company surveys only a fraction of the companies that might be announcing layoffs, but it is a good indicator of the trend in the labor market. And that trend is definitely positive. As I've
We all know the answer to that. It fires workers to achieve the "cost savings" that were touted as a key reason for doing the deal in the first place. Wall Street demands them, and CEOs, with their compensation frequently tied to achieving these cost-cutting targets, are only too "incentivized" to comply.So the huge boom in mergers and acquisitions in 2006 is likely to be very, very bad news for workers in 2007. How big was this boom? Record-breaking. The total value of deals in which one company acquired another soared to almost $4 trillion globally in 2006, according to Dealogic, up about $500 billion from the record set in 2000, the peak year of the technology stock frenzy. The private equity market -- where investors use a pool of money raised from private investors to buy a public company, delist its shares from a public stock market and take it private -- saw an even faster rise, to a global total of $750 billion, up 103% from 2005. Private equity deals accounted for 19% of all global acquisitions, up from 12% in 2005.