Tech Companies Cutting Jobs to Adapt Economic Uncertainty
Technology brands including Salesforce, Sophos, Meta, Apple, Intel, Lyft, Qualcomm, Upstart, Vimeo, Adobe and HP were already in this layoff wage. On Friday, Alphabet become the latest firm to join the list of IT giants to opt for job cuts.
HIGHLIGHTS:
- Uncertainty in the global market and economy pushed several teach firms to layoff workforce globally.
- Alphabet become the latest firm to join the layoff row.
- Amazon issues a job cut warning notice to around 2300 employees under the company’s WARN Act.
- Microsoft announced around 10000 job cuts.
- With this move companies trying to secure their position in the post-pandemic situation.
Tech Companies Cutting Jobs to Adapt Economic Uncertainty.
The present uncertainty in the global market, expected slowdown and economy brunches in 2022 has pushed several teach firms and other IT giants to layoff workforce globally which leads to the trends ‘Tech Companies Cutting Jobs’.
On Friday, Alphabet become the latest firm to join the layoff row after Microsoft, Twitter, Meta Amazon and other global tech giants to opt for job cuts.
Amazon issues a job cut warning notice to around 2300 employees under the company’s WARN (Worker Adjustment and Retaining Notification) Act on job cuts. Employees from the United States, Canada, Australia and Costa Rica are set to be let go, according to the Global News.
As per reports, this come after the company has reduced 2% of its workforce, laying off around 8,000 employees in the first week of January as a part of its over 18,000 job cut drive as announcement by CEO Andy Jassy earlier.
Tech layoffs continue and still going beyond. The job cuts started in 2022 and now accelerated across the technology sector. As per a report by consulting firm, Challengers, the job cuts counted 80, 978, monthly, which is the highest for the industry since 2020.
Tech companies are on an eliminations spree globally due to a possible worsening Global economy. Companies have become cautious regarding global economic slowdown with the fear of recession, weak consumer demand and rapid rate hike.
Microsoft is among the recent companies to announce around 10000 job cuts across it’s Engineering divisions.
This drive is a part of these companies efforts to secure their position in the pre-pandemic situation. The Tech companies justified their move, citing ‘macroeconomic conditions as the changing circumstances or customer priorities’.
Microsoft is in the way to layoff only 5% of its total workforce, as opposed to around the 36% of the employed expansion during the pandemic. However, Satya Nadella, CEO of Microsoft, assured the key hiring in strategic areas, especially in the artificial Intelligence and division.
Other IT and Technology brands including Salesforce, Sophos, Meta, Apple, Intel, Lyft, Qualcomm, Upstart, Vimeo, Adobe and HP have had made major cutbacks in recent months.
Salesforce earlier announced elimination of a total of 10% of its workforce in the coming weeks, in addition to the hundreds of employees being laid off in December last year.
Sophos, a UK based cybersecurity firm, laid off around 450 employees, and Meta Inc. laid off 11000 staffer.
This job cut trend in the tech sector is a sign as companies attempt to adapt to the changing market conditions and secure their position in an uncertain economic situation. That’s why companies are in a process of cost-cutting to cope with the abrupt situations.
