Over the past year, the tech giants have said goodbye to a huge number of their employees. For what reason did this occur and for what reason is it actually working out? Let's figure it out.
Harbingers
The IT industry is very popular all over the world. Almost all specialties in it are highly paid, which attracts young people to master professions and bear the proud title of “IT specialist”. At the same time, the market still needs qualified workers, and competition is growing every day. But the unprecedented actions of Big Tech companies like Amazon, Twitter, Meta, and Google make one wonder.
According to Layoffs research for 2022, about 146,000 workers lost their jobs in technology industry corporations and start-up IT startups. The harbingers of this phenomenon appeared at the end of 2021, when many giant companies announced a drop in profits. For example, Meta's quarterly earnings fell by 21%, and Netflix's shares by 30%, which is associated with the outflow of a huge number of subscribers. Amazon also managed to alienate investors due to a significant decrease in profits.
According to Big Tech companies, the second quarter of 2022 was the worst in the last 20 years. All this led to the fact that in October and November, many cut the budget, fired employees and stopped recruiting new ones.
Why is this happening?
Global economic problems could not but affect the IT sector. Rising interest rates, inflation and other problems have shattered even the most promising area.
But another reason can be considered the end of the pandemic. Yes, the coronavirus has led to a tremendous growth in digital commerce. This made the representatives of the techno giants rich, which triggered them to constant growth and expansion. And when interest in the “remote format” began to subside, a huge number of employees became an unaffordable luxury.
Some numbers
Twitter has become the leader in the number of reductions. The organization laid off portion of its representatives or employees.. 7,500 people said goodbye to their workplace at once.
Meta has reduced 13% of its staff, which is about 11,000 employees.
Amazon, although preparing to lay off only 1% of its specialists, is about 10,000 people. Such a massive reduction will be the first time in the history of the company.
Google is also keeping up with other companies and plans to say goodbye to 10,000 specialists in 2023. At the same time, they will arrange a whole competition where the 6% of the most inefficient employees will say goodbye to Google.
Microsoft said goodbye to only 1,000 professionals, less than 1% of all employees.
Zuckerberg's words
According to Mark Zuckerberg, this trend was not expected. Due to the growth of the pandemic, there was a sharp surge in development in the field of IT, which forced a significant expansion of the staff. It was supposed to be permanent, but this did not happen. Meta's shares were down 24% and total earnings in the 3rd quarter fell by half.
Zuckerberg took full responsibility for what was happening and expressed regret to all the employees who had to be laid off.
Yes, experts also believe that Mark was the culprit of all the cataclysms in the company. a huge amount of money has been invested in the metaverse. But this obsession has only led to huge monthly losses, estimated in the billions of dollars.
Comments
Post a Comment