Since the second half of 2022, massive layoffs at tech giants have been making headlines, and it appears that things are only just beginning to get worse. In response to Elon Musk’s decision to eliminate almost half of Twitter’s worldwide personnel, Meta and Amazon both announced employment cuts that led to the loss of thousands of positions just in time for the holidays.
The computer sector has a reputation for aggressively terminating employees. This most recent round of layoffs reminds me of the dot-com bubble when thousands of people lost their jobs. Why were so many tech workers recently let go? These are three of them.
-1. Many companies went online as a result of the epidemic as they adjusted to lockdowns. You may have attended Zoom meetings while lounging about in pajamas and clothes more acceptable for the workplace. The new way of life included Netflix, online shopping, and remote employment. You might have assumed that things would always be this way, with IT companies constantly hiring for IT positions.
-2. Threats of layoffs increase as investors press for employment cutbacks to save costs. Venture capitalists are worried that businesses would be less lucrative this year following a tech boom in 2021. The parent company of Google, Alphabet, as well as Meta, are some businesses that are under pressure from investors. According to CNBC, a shareholder in Alphabet named TCI Fund Management urged the company to “take aggressive action” and cut staff.
-3. Do tech layoffs just reflect a business’s organic expansion? According to Yorlin Ng of Channel News Asia, yes. After its first growth stages, an industry “matures” or becomes more stable. It seems to sense that a tech business would not be adding any new clients at this time. It could think about expanding to other nations or broadening its product line. However, if these tactics don’t succeed, it will be forced to fire employees.
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