Job Layoffs: IT companies fired 78,000 employees after the pandemic, know the reason
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Durham (USA): The world’s leading IT companies (Information and Technology) are always in headlines for one thing or the other. Usually she keeps telling about the next big thing. However, in recent times, instead of discussing any new gadget or innovation in the tech news circles, news of huge layoffs in big tech companies has remained in the headlines. More than 70,000 people were laid off globally by Big Tech companies last year, and this does not include companies (and other organizations) who are losing business due to tight budgets and laying off employees. are deleting. What exactly caused this massive movement and what does it mean for the industry and for you?
IT companies fired 78000 after the epidemic
Alphabet (12,000 employees), Amazon (18,000), Facebook’s parent company Meta (11,000), Twitter (4,000), Microsoft (10,000) and Salesforce (8,000) have lost their jobs since the end of the pandemic, according to a report in the news agency Bhasha. Including a large number of employees were fired from major technology companies. In addition, other household names including Tesla, Netflix, Robin Hood, Snap, Coinbase, and Spotify also figure in this list, but their layoffs are significantly lower than the numbers mentioned above.
Companies adopting artificial intelligence
Importantly, these figures do not include layoffs due to reduced business, such as ad agencies laying off staff because advertising spending falls or tech product orders falling at manufacturers, according to the report. size is reduced. Also, don’t forget about those who quit voluntarily, as they don’t have to come to the office. Hate your managers or are not happy with the way Elon Musk works. The direct effects of all the above will be felt in the consulting, marketing, advertising and manufacturing sectors, as companies reduce spending and invest it in innovation in AI (Artificial Intelligence).
What is the reason for layoff?
Due to reduced advertising expenses and revenue, there is an additional burden on the companies. Many tech companies get money through advertisements. So, as long as this channel of money was open (which it was especially in the pre-Covid years), employees were lavishly spent. Advertising revenue declined last year, partly due to fears of a global recession triggered by the pandemic. It was an inevitable layoff. Apple is an exception. It has refrained from increasing its workforce in recent years and as a result has not had to reduce workforce.
What does this mean for consumers?
While the headlines may be shocking, the layoffs won’t actually mean much to consumers. Overall the work on technology products and services is still growing. Even as Twitter was predicted by many to end, it is now trying to diversify its sources of revenue. This means that some projects, such as Mark Zuckerberg’s Metaverse, will not develop at the pace that business giants had initially hoped. Low interest rates as well as high Covid-related consumption over the past few years have given business leaders the confidence to invest in innovative products. Apart from AI, that investment is now slowing or has ended.
What about those who lost their jobs?
The question that arises is that layoffs can be devastating for the individuals affected, but who is affected in this case? In most of the cases the people who lost their jobs are educated and highly qualified employment professionals. They are being offered severance packages and support, which often exceed the minimum legal requirements. For example, Amazon has specifically indicated that its losses will be among technical workers and those who support them, not warehouses. Having the name of a large tech employer on your CV will be a real advantage, as these individuals move into a more competitive job market. It may not look like it, but it will be as hot as many had feared.
What does it mean for the industry?
The report states that experienced technical professionals are once again looking for work. Pay is likely to be low and a higher level of experience and education will be required to secure employment. These improvements in the industry are likely a sign that it is falling in line with other more established parts of the market. The recent layoffs are being watched, but they will not affect the overall economy much. In fact, even if Big Tech laid off 100,000 workers, it would still be a fraction of the tech workforce.
Mass Hiring During Pandemic
The reported numbers may seem large, but they are often not reported as a proportion of overall salary expenses or indeed as a proportion of the overall workforce. For some tech companies, they are just a fraction of the massive amount of new hires they initially secured during the pandemic. Big Tech is still a big employer and its big products will continue to influence many aspects of our lives.
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