So many laid off in the Tech World!! The obvious question that arises in mind is, Why??
It seems like the turn of the year has represented a completely unique turn of events for the world of technology. Companies that were previously known not to lay off people ever are now initiating layoffs of tens of thousands of people at once. Alongside that, new inventions in the world of artificial intelligence seem to threaten corporate giants in the field and are expected to change our lives completely.
You become what you surround yourself with and people who work in and have a know-how of the technology sector are usually accomplished people who have done well for themselves. This shift in the tech sector consists of an opportunity for you to demonstrate that you too are knowledgeable about what the sacred microchip is being used for these days. That is why it will serve you very well in case you gain more information about what has led to the mass layoffs in the tech sector. To help with the cause, we will be detailing exactly that for you.
Why So Many Got Laid Off in the Tech World? Possible reasons
We believe there are two main reasons to answer the question, Why So Many Got Laid Off in the Tech World in recent years?
Increased Focus on Artificial Intelligence
Upon laying off as many as six percent of his global workforce, the chief executive officer of Alphabet Inc., Sundar Pichai, stated that his company is aiming to have an increased focus on artificial intelligence. And the intent was similar in the cases of the other companies that initiated mass layoffs. Now, you may be wondering that artificial intelligence has been a phenomenon that people in general, and these big tech giants in specific, have been aware of for a while so why react to it now at the same time?
The answer to that is ChatGPT. ChatGPT, as an artificial intelligence tool, has proven to be massively effective and popular and is considered to overtake companies of the likes of Alphabet if the latter fail to compete. Thus, these companies are laying off people to increase their budget toward research on artificial intelligence.
Yet another reason for the mass layoffs in the technology sector has to be the global economic downturn we are experiencing right now. What experts were saying ever since the start of the War on Ukraine proved to be true after all. The war was not only going to impact the Republic of Ukraine and the countries that surround it; it was also going to affect the world as a whole considering how the entire global economy is connected, and Russia – a big party in the war – is responsible for a lot of the global oil production.
Signs of a recession are everywhere. Janet Yellen, the Secretary of the Treasury of the United States of America and former Governor of the United States Federal Reserve issued a warning to the country’s legislature that the federation was on the verge of hitting its debt ceiling.
You may be wondering how the economic recession is linked to the layoffs of tens of thousands of people. Well, users of technology service providers, like the ones that laid off massive amounts of people recently, reduce their consumption of the services of these providers. When that happens, the revenues of these companies go down. Upon that happening, these companies desperately try to reduce costs to retain their profits. Mass layoffs are part of these cost-cutting measures.
We are confident that this article will have given you a better picture of Why So Many Got Laid Off in the Tech World? As explained earlier, being well-read on the tech world pays off well; feel free to read more blogs like these for further information.