Kent Haynes never imagined he would work for free. But last week
the 58-year-old former technical program manager for Compaq Corp.,
with more than 30 years of experience in the high-tech industry,
took a job as an unpaid volunteer at a struggling start-up in
Newark.
"At least it keeps me off the street," said Haynes, laid off from
his $90,000-a-year white-collar job in March.
From the executive suite to the assembly line, the high-tech
industry's collapse has taken a huge toll on the bottom lines of Bay
Area tech workers.
Tech industry employment has declined every month since March
2001. The number of U.S. tech jobs fell by 113,000 in the first six
months of 2002, according to a report released last week by the
American Electronics Association. Private-sector employment inched
up 1 percent in the same period. The Department of Labor reports
that 1.6 million have been out of work for more than six months, the
highest level since 1994.
National outplacement firm Challenger, Gray & Christmas will
report Monday that the average length of a job search for discharged
managers and executives surged 26 percent during the past 12 months
and now stands at nearly four months, a 16-year high. Outplacement
firms say a typical tech job search takes six months, up
dramatically from a year ago.
"This is my third recession, and it's the worst one," said
Silicon Valley career counselor Patti
Wilson. "It's a tech
depression, and I don't see any light at the end of the tunnel."
Facing the worst hiring slump in recent memory, out-of-work
techies are struggling to stay afloat. Everyone from the young
dot-commers weathering their first recession to older workers who
have never seen the tech industry hit this hard spend their days
scouring job boards, working their Rolodexes, speed-dialing
recruiters, and sending out reams of resumes. The resumes disappear
into a black hole, they say.
"There are no jobs," said Matt Heminger, a senior educational
engineer laid off from PeopleSoft Inc. in August.
With the stagnating economy and unrelenting layoffs at tech
companies, prospects for the unemployed seem to get bleaker by the
day. Even though the rate of job loss appears to be slowing, landing
a job sometimes seems as speculative as the Internet bubble itself.
Job searches are taking longer and are much tougher even after
people downsize expectations and apply for lesser jobs for lower
pay.
"I made $132,000 last year. If I could make $40,000 at a job, I
would take it," Heminger said. He already sold the 2,400-square-foot
Tracy home where his ex-wife and son lived. His ex-wife moved to a
more affordable 1,000-square-foot apartment in San Ramon closer to
her job. His 8-year-old son, Tyler, had to leave his best friend and
is having trouble adjusting to his new school. "It's tougher on
Tyler than anyone else," Heminger said.
Native New Yorker Susan Casella, 35, moved to Oakland in 1997 for
the plentiful sunshine and high-tech jobs. She found her second home
at PeopleSoft, where she worked as a senior marketing communications
manager. Laid off last month, Casella already has grown nervous. She
has spent fruitless hours chatting up recruiters and working her way
through her Rolodex as her three cats curl up at her feet.
"I've always had a very easy time finding a new job either
through my contacts or headhunters, but this time the jobs just
aren't out there," she said. "I don't lack for people to hire me. I
lack for open positions."
The stark contrast between before and after the tech crash took
many techies by surprise. On weekday mornings when Michael Galpin,
28, emerged from BART and walked 10 downtown San Francisco blocks to
his job as a software engineer at an Internet startup, he was always
struck by the palpable energy on the packed streets. "I recently had
an interview downtown, and the streets were a lot emptier. There
really wasn't the same kind of buzz that was in the air back then,"
he said. "Everyone is in hunkered-down mode. Everyone has just got
to survive right now."
Galpin's company, Concord-based RetailersMarketXchange Inc.,
shuts down at the end of the month. He used to expect a pay raise
when changing jobs. Now he hopes he won't have to take a pay cut to
land a job as a Java programmer. He is considering jobs in San Jose,
a long commute from his Walnut Creek home. He and his wife, a nurse,
have even thought about relocating to Los Angeles, where tech jobs
are more abundant. He looks at his out-of-work friends, many with
fancy degrees and credentials, and he worries. "If I think about
that stuff, I get a little panicky," he said.
Andrew Perfetto once hired a record 54 people in one quarter for
Commerce One Inc. at the height of the tech boom. Now he's pounding
on doors, looking for a job. He was one of the last recruiters laid
off from the troubled software maker in April, a day after his 40th
birthday. "It was a birthday present: two months of severance."
With a resume full of big jobs at big companies like PeopleSoft
and Microsoft, he has finagled interviews but no offers yet. Plenty
of people want to hire him; there just aren't any jobs.
"One company told me during an interview, 'We received 800
applications for this job, so you should feel good about being
interviewed.' That tells me what's going on out there. The thing
that I've heard the most is, 'We want to hire you. We're going to
have a meeting next week about the budget.' Then I get an e-mail
that says, 'Sorry, we didn't get the funding. Hopefully, we will at
some point in the future.'"
In the meantime, out-of-work techies scrape by on unemployment
checks, personal savings and credit cards. These days Heminger is
eating in and doing less laundry. He's still driving his old Ford
Taurus. He and his roommate don't run the air conditioner even on
the hottest Pleasanton days. He has put off indefinitely the kinds
of purchases that never used to be a big deal, like a PlayStation 2
for Tyler.
Heminger also has begun to contemplate the unthinkable: leaving
his son and taking a temporary job elsewhere. He has a line on a
six-month contract job in Riverside. "I don't even think about
career opportunities. The things I thought of before are immaterial
now," Heminger said. "I just have to put bread on the table."
Haynes gets by on $330 of unemployment a week. His wife, a
seamstress, makes $11 an hour. Their stock portfolio has lost 40
percent of its value. Haynes doesn't even open the statements
anymore.
The Haynes moved from Idaho to California in 1965 to avoid
working on the farm. Now they wish they were back in Idaho. "That's
where all the high-tech jobs are," Haynes said wryly. This, he says,
is the worst downturn in the tech industry he has ever
experienced.
For the first time in decades, the Hayneses are talking about
selling their Dublin home and moving to Nevada or Oregon, where
there are more jobs and life is less expensive. That conversation
takes on more urgency with each passing week. Kent Haynes estimates
they can hold out another three months.
Haynes sends out 30 resumes a day, many for entry-level tech
jobs. "They don't understand why an older guy with a history of high
income would be content taking an entry-level job," Haynes said.
"They fear that I would jump ship when the economy turned around,
and that's not necessarily true." He even applied for retail jobs
and says he wouldn't mind working for Radio Shack or Wal-Mart. He
just needs to find a job that wouldn't require him to stand all day.
"I've been a white-collar worker most of my life, and I have spent
most of it riding a chair," he said. "I'm not sure I'm in the
physical shape to stand on my feet like a 20-year-old."
Many techies' optimism is sinking faster than the Nasdaq. They
cope with depression, boredom and self-doubt. Heminger has never had
a problem finding a job. In early September, he turned 40. "It was
uncomfortable turning 40 and not having work," he said. "Work was
the center of my life."
Perfetto is open to all kinds of jobs, working construction,
waiting tables. He even applied for a job selling Mercedes Benzes at
the local dealership. Perfetto has worked nonstop since taking a job
as a bus boy when he was 16 and isn't used to having so much time on
his hands. Playing electric bass in an AC/DC tribute band helps.
"It's not so much the money at this point," he said. "It's the
boredom."
Rich Young, 41, a software tester laid off a year ago, used to
live well "for a single guy." He indulged his hobby, buying up
computer equipment on eBay. He went to loads of rock concerts. With
only one eight-week contract job to help pay the bills, Young's
carefree lifestyle is as distant a memory as the tech boom itself.
He has drained his savings, and estimates he can hold out until
January. Then he'd have to cash in his 401(k).
"Living on unemployment isn't easy," he said. He can't afford to
do much other than look for a job, which can get pretty lonely. He
watches football and baseball games at a local pub in Walnut Creek.
"It keeps my evenings occupied without costing me a ton of money,"
he said. The only indulgence he has clung to: his Raiders season
tickets.
With a rebound unlikely before sometime next year or 2004, many
techies have developed a deep ambivalence about the tech industry.
They are changing careers, pursuing jobs in other industries, or
applying for jobs just for the income and benefits -- and to get out
of the house.
Worst of all for Young is that nagging little cyst of fear in his
stomach. It has been a year since Young has had a check-up. That's
not a big deal for most people, but Young is a cancer survivor. He's
supposed to have a check-up every six months. "That's kind of the
worst part," he said, "not having the security blanket of medical
insurance."
Heminger wants to offer his son a sense of security. But even
Tyler knows times are tight. The other day Heminger offered Tyler
$10 at the mall. "He said, 'No, that's OK. Just give me five,'"
Heminger said. "He's been sweet about stuff like that. He even
bought me a bobble head dog. If I ever get a job, I will put it on
my computer."
Diane Battilana, 51, already went through the hardest experience
of her life. Her fiance died suddenly of a heart attack two years
ago. The only thing that could make this software engineer's Castro
Valley two-bedroom condo seem a little emptier happened in March
when she was laid off from Giga-tronics Inc. in San Ramon.
But Battilana kept busy. She worked to finish a master's degree
in computer science at Cal State Hayward and teaches a programming
class at the College of Alameda. She joined ProSearch, a self-help
group for job seekers. To keep her spirits up and her body in shape,
she takes inexpensive physical education classes at Chabot
College.
"It's scary to be faced with an unknown employment future and be
at my age and wonder, 'Is anyone going to want to hire me?'" she
said a few weeks ago. Most of all she missed her work as a software
engineer. "I love figuring out how to either solve a programming
problem or debugging things that don't work."
Last week, Battilana became one of the lucky few. She landed a
job with BridgePoint Systems, an Oakland company that has developed
a secure access control system using smart card readers.
"I'm still kind of shocked," she said. "My friends at ProSearch
are so glad somebody finally got a job in high tech."