This latest round of layoffs brings back memories of the dot-com era, which left thousands without jobs.
Why were many tech employees fired recently?
Here are six reasons.
Economic Uncertainty
Layoffs are a company’s emergency strategy when demand for its products and services dwindles.
Sadly, employees are among the first to go when you should probably cut costs.
Debates about whether the U.S. is in a recession escalated after data from theU.S.
Bureau of Economic Analysisin July 2022 showed a shrinking economy for the second straight quarter.
you’re free to’t confidently say that the future looks rosy.
you could conclude that layoffs are a company’s way to survive uncertain times.
Decrease in E-Commerce Activity
The pandemic drove many businesses online as they adapted to lockdowns.
Online shopping, Netflix, and remote work became the new way of life.
Some tech firms embraced online work, with a fewhigh-rated companies on Glassdoor offering fully remote or hybrid work.
But not everyone was eager for the Metaverse to happen so suddenly.
Consumers emerged from lockdowns as well, and online spending decreased.
The mass tech layoffs are partly the result of the world returning to pre-pandemic normalcy.
Companies might have hired rapidly during the pandemic, but they have no use for these workers now.
Pressure From Investors
Layoff threats become more real as investors push for job cuts to lessen expenses.
Some companies facing pressure from investors are Alphabet (Google’s parent company) and Meta.
According toMarketwatch, Alphabet plans to lay off approximately 10,000 poor-performing employees.
Meanwhile, Altimeter Capital CEO,Brad Gerstner, made similar calls to Meta.
It looks like the letter worked.
On November 9,Metaposted Zuckerberg’s decision to let go of 11,000 employees.
His rant came a day after he laid off thousands of employees following a $44 billion acquisition.
Clear skies seem far off for the blue bird as talks of more layoffs make the rounds.
Signs of a Mature Industry
Are tech layoffs just part of a company’s natural growth?
Yorlin Ng onChannel News Asiaseems to think so.
An industry “matures” or becomes more stable after its initial growth stages.
At this point, it’s only natural for a tech company not to have new customers.
It might consider diversifying its products or expanding to other countries.
But when these strategies fail, it has no choice but to lay off workers.
The reasons above support this.
In an uncertain economy, layoffs are the purported cure.
But even if the economy is doing well, companies still use layoffs as an excuse to improve profits.
While there seems to be no evidence that layoffs work, it has become the short-term, go-to strategy.
Sadly, employees have to take the fall.
you might stay productive if you’re one of those impacted by this layoff culture.
Consider taking time off or upskilling.
Plan and organize your next steps before you apply to your next company.
From Tech Boom to Tech Gloom?
External and internal economic factors play a part in ongoing layoffs.
One day, you might have your job.
The next day, you might receive a goodbye email from someone like Elon Musk.
However, the future doesn’t have to be gloomy for tech professionals.
If you have grit and skills and love tech, stay your course.
Even with tech layoffs happening simultaneously, the future of work is still connected to technology.
