Welcome to all our readers who are worried about the recent layoff by Tech giants and want to know more about them. It has been an absolute carnage in terms of layoff by tech giants as 1000s of employees find themselves job hunting in a turbulent economic situation.
We are here to help you find more information on the topic of Why Tech giants are laying off globally.
We understand you or your loved ones might be employed in an IT workforce and hence it’s imperative to be worried about the ongoing layoff by global tech companies.
. Product-based companies were thought to be safe from such huge layoffs but strangely we have witnessed many being fired off incessantly in the current scenario. So here we are to help you find answers about what are the reasons Tech giants are laying off globally.
Know the Companies: Tech Giants are Laying off Globally.
The job cuts began in late 2022 after the great surge in wages of IT employees for a period of roughly 1 year post-pandemic when the demand for digital transformation boomed and work-from-home enabled IT personnel to engage in upskilling activities.
Some of the major Tech giants are laying off globally and if you or your loved ones are an employee of an IT company you must know the companies which pose a danger to your employment
Known to be one of the biggest Tech companies in the world for e-commerce, cloud-based services, and OTT platforms it has laid off 2300 employees in Seattle and Bellevue while further announcing a layoff of 18000 employees from the USA.
It has also terminated another 10000 employees in a short period of 1 week. A dream job for many is turning into a nightmare with firing done without any mistakes as employees get laid off.
Just like the Mad king burns off people in Game of Thrones, Twitter’s new CEO has been a frontrunner in firing employees post takeover, his ideology is simple he wants profitability and anything coming its way will be tackled.
Nearly 3700 employees were served off the social media platform company for cost-cutting and furthermore, employees were terminated for expressing their issues about existing management in Twitter.
Facebook’s parent company Meta made the biggest layoff by firing 11000 employees at one go in November 2022 which was approximately 13% of their workforce and was the first time in history that it had gone for a mass layoff.
You might love using Apple products but even this tech giant has fired off employees in huge numbers lately citing budget cuts.
Some other major tech companies who are laying off employees include Intel, Lyft, Qualcomm, Salesforce, Upstart, Vimeo, HP, and the list continues.
8 Reasons why Tech Giant are Laying off Globally.
Yes we know it’s disturbing and difficult to understand why Tech Giants are laying off globally just after recruiting of so many employees at a high percentage of increments, it seems the pandemic-initiated govt. measures to kick off the economy have backfired and led to a turbulent situation that is impacting employment for the IT workforce, however instead of speculating, we would now provide the best reasons why Tech Giants are firing employees.
There are several reasons why tech giants may be laying off employees globally. Some possible reasons include:
- Restructuring: Companies may be undergoing a restructuring process, in which they are looking to streamline their operations and focus on certain areas of their business. This can result in job cuts.
- Automation: As technology advances, many tasks that were once performed by humans are now being automated. This can lead to job cuts as companies look to reduce labor costs.
- Economic downturn: The global economy may be facing a downturn, which can result in companies cutting costs, including reducing their workforce.
- Mergers and acquisitions: Companies may be merging or acquiring other companies, which can result in job cuts as the new company looks to eliminate duplicated positions.
- Remote work: With the pandemic, companies are increasingly moving to remote work, which may lead to job cuts as the companies will not need the same number of employees in the office.
- Investment in AI: ChatGPT’s increase in influence has put many companies make wonder whether they are investing in the correct AI assets and hence has led to many CEOs wondering whether to invest more in AI and get their company’s sales rolling which means they needed budget for increased allocation of investment in AI for which employees are being fired.
- High Employee Cost: Another issue has been the hike in payment has been so high that employee cost has risen drastically, in a bid to secure employees to provide services for the digital change fuelled by the pandemic many companies gave more than 100% hike to new employees and it has led to high employee cost affecting profits and hence the layoff is just an after measure.
It’s worth noting that many times the companies that are laying off employees also have a long-term strategy to focus on new areas of growth like AI, machine learning, and cloud computing, and these areas may require different types of workforces.
FREQUENTLY ASKED QUESTIONS(FAQs)
What is the best way to deal with a recession?
There are several ways to deal with a recession, but the best approach may depend on your individual financial situation. Here are a few strategies that may be helpful:
Maintain an emergency fund: Having a savings buffer can help you weather unexpected expenses during a recession.
Reduce debt: Paying off high-interest debt, such as credit card balances, can help you save money on interest payments.
Diversify your investments: Don’t put all your eggs in one basket. Diversifying your investments across different asset classes, such as stocks, bonds, and real estate, can help reduce risk.
Keep your expenses low: Try to keep your living expenses low and avoid unnecessary purchases.
Look for opportunities: Recessions can also bring opportunities, such as lower prices for assets like real estate or stocks.
Keep a long-term perspective:
We have finally come to a close on our discussion about why Tech giants are laying off globally and we believe that this article would have helped you figure out the answers you were looking for. We understand the layoff which began just before 2023 has dampened the mood of the IT workforce and hence we have brought out this article to help understand the reasons why Tech Giants are laying off globally and take countermeasures to ensure it doesn’t impact anyone.