There's nothing like a precise figure. And according to Plimsoll Analysis, up to 24,073 jobs could be lost as the UK computer software industry consolidates during the next 12 months - which, if nothing else, is an exercise in precision.

Plimsoll has analysed each of the UK’s leading 2,000 companies, assessing each firm’s chances of survival. As well as the job losses:

• As many as three quarters of the firms analysed will need to reduced their head count
• One of the largest firms could see up to 985 jobs lost
• More than a quarter of the companies surveyed are already running at a loss
• Companies need to aim for at least £115,000 sales per employee in order to stay competitive

The figures demonstrate the potential problems ahead, both for the UK software industry and IT professionals. As David Pattison, senior analyst at Plimsoll Analysis, says of the challenge:

“The 165 companies we have identified as in danger need to act now if they are to survive. It's very important they review their entire business cost base and take action now to significantly reduce their outgoings. Whilst job losses are undoubtedly bad news for any company, such decisive action may be called for to guarantee the ultimate survival of the business - even if this means the business is 30 or 50 per cent smaller than it was.”

Are job losses bad news for a company? Yeah, maybe. But if the organisation cuts employees and then turns business performance round, are the cuts still bad news? No, I guess not. But they are still bad news for employees that loses their jobs...

Further reading

• 'Gentleman's hours' are key to flexible working
• Would you recommend a career in IT to your child?
• Forget dreams of working abroad, or in Cobol
• Be proud of being a technology nerd
• Modernise to beat IT and skills obsolesence

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Want to contact the writer? Email Mark Samuels