Tech firms are frequently featured in the news, usually promoting the newest innovation. The latest invention or device, though, hasn't recently taken center stage in the tech news cycle. Instead, news stories focus on layoffs.
Big Tech businesses have let off more than 70,000 people worldwide in the past year, and that doesn't include the knock-on effect of contractors (and other organizations) losing business as budgets get tighter.
Numerous individuals have lost their jobs at big internet firms since the epidemic recruiting frenzy ended, including Alphabet (12,000 employees), Amazon (18,000), Meta (11,000), Twitter (4,000), Microsoft (10,000), and Salesforce (8,000).
Other well-known brands like Tesla, Netflix, Robin Hood, Snap, Coinbase, and Spotify also receive attention, but their layoffs pale compared to those of the companies above.
Less money spent and earned on advertising was the canary in the mine. Advertising is a significant source of funding for tech businesses. Therefore, spending on staffing was healthy as long as that income stream was as well (which was particularly true in the years before COVID). Layoffs were a foregone conclusion when advertising revenue dropped last year, partly because of worries about a pandemic-induced worldwide slump.
The one exception is Apple. It has resisted hiring more people recently, so it doesn't need to reduce employee sizes. Due to the resurgence of the job market for experienced computer experts, earnings are anticipated to decline, and higher levels of education and experience will be necessary to get employment. These fluctuations in the market could be an indication that it is catching up to other, more established segments.
The recent layoffs are noteworthy, but they won't significantly impact the economy as a whole. Even if Big Tech fired 100,000 employees, that would represent a small portion of the industry's workforce.
The published figures could appear substantial, but they're frequently not expressed as a percentage of total salary expenditure or staffing levels. For other tech companies, they represent just a tiny portion of the enormous number of new personnel made during the pandemic.
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