How Will FCC Proposed Merger Requirements Impact IT Job Market
Employees impacted by merger will have a say in the process
With AI, blockchain, and a looming recession, many enterprises are looking to control costs while operational transformations are taking place. Companies that want to grow by merger or acquisition often do so with the idea they can consolidate operations and eliminate redundant staff. Many of those positions are in the Information Technology groups. These mergers can lead to the elimination of some redundant jobs in IT.
The proposed changes to merger filings - which are required by a 1976 law, the Hart-Scott-Rodino Act - would require companies to provide details about their employees’ job categories and geographical data on where workers may overlap post-merger. Federal antitrust enforcers would use HSR filings to determine whether they will further probe, and if necessary, challenge anticompetitive deals.
The rule changes will require enterprises to consider labor markets and companies’ treatment of their employees. This in turn will open a new front in merger challenges brought by the FTC and the Justice Department. Broader disclosures would allow the enforcers to more easily examine how a merger could eliminate workers’ choice of employers, which can harm wages and benefits.
Some pundits feel this will not impact the IT Profession as there are more job openings than qualified candidates. However with a recession looming over the horizon that may not be the case.
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