Friday, April 21, 2023

Tech Layoffs Really Are Rising, And Heres Why

Tech Layoffs Really Are Rising, And Heres Why

Note: This story was originally published on December 1, 2022 and featured an interview with Layoffs founder Roger Lee. Updated April 17 with new information and technology industry releases.

Oppressors are making headlines again, but their main focus is on technology. Those numbers are rising, with seven times more layoffs in January than December, according to Layoffs.fyi, which tracks job cuts in the tech industry.

In fact, more technicians will be laid off in 2022 than in 2020 and 2021 combined.

These layoffs are a notable anomaly in an otherwise strong employment climate: the unemployment rate was between 3.4% and 3.7% in April 2022, according to bureau data. And inflation -- a reflection of worker confidence -- was at its highest level in more than 20 years this year, according to St. According to data from the Federal Reserve Bank of Louis.

The greatest technological pressure is on large companies. Here are some of the latest technology releases as of 2022.

  • On March 23, IT company Accenture said it would lay off 19,000 employees, or 2.5% of its workforce, over the next 18 months.

  • On March 20, Amazon announced plans for another round of layoffs, this time for a total of about 9,000 workers, or about 3% of its workforce. Previously, Amazon laid off almost 18,000 workers between November and January.

  • On March 14, Meta, the owner of Facebook and Instagram, announced it would lay off 10,000 workers. Earlier, on November 9, Meta laid off more than 11,000 workers, about 13% of the workforce at the time.

  • On February 8th, Zoom Video Communications Inc. announced. He announced that he would lay off 15% of his workforce, equivalent to about 1,300 workers.

  • On February 6, computer company Dell announced that it was laying off 5% of its workforce, equivalent to approximately 6,650 employees.

  • On Jan. 23, Spotify, one of the most popular audio streaming services, announced that it was laying off 6% of its workforce, which translates to about 600 employees.

  • On Jan. 20, Alphabet, Google's parent company, announced it was laying off 12,000 employees.

  • On Jan. 18, Microsoft, the biggest name in computer software, announced plans to lay off 10,000 employees.

  • About half of Twitter has been fired since Elon Musk took over as CEO in late October 2022. Then, on November 16, Musk gave his employees an ultimatum to create a new "awesome" Twitter account or be fired -- more than 1,200 employees. he chose the second.

Many large companies have laid off employees and launched tech offerings: crypto (Coinbase), e-commerce (Shopify), ridesharing (Lyft), online payments (Strip), management platform (Asana), and Lai real estate brokerage. Table.Internet (Redfin). The list grows.

But eleven isn't the right word — in 2022 it's 1,024. From April 19th to 2023 it was 597. This issue is from Roger Lee, the founder of Layoffs.fyi, who has been tracking tech layoffs since 2020. When startups start laying off employees, the pandemic begins.

The pandemic has allowed people to increasingly turn to the internet for work, shopping and socializing. In response, tech companies have launched a recruitment drive to meet consumer demand. The tech jobs boom began in late 2020 and continued into 2021, around the same time as the Fed's policy in 2018. Lower interest rates in 2021 allowed tech companies to raise capital and invest in growth.

But both trends reversed in early 2022.

According to Lee, most of the layoffs in early 2022 will come from startups. But in late 2022 and early 2023, it started slipping into big tech. Lee also said that "Big Tech's layoffs," as seen on Meta and Twitter, "represent a unique opportunity to hire talent that was previously impossible to attract."

He believes tech companies will scale back job cuts, Lee said, "as it becomes clearer when and if the Fed can curb inflation."

Amazon, Meta, Netflix: Why Big Tech Faces Big Discounts | The Wall Street Journal

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