What Is Behind the Big Tech Companies’ Job Cuts?
Despite the importance of online ads, the advertising industry has been experiencing various challenges.
As the economy started to get worse, many companies in the tech industry started to reduce their online advertising budgets. Rising interest rates, and the play roulette online for money, also affected the financial technology sector. Paolo Pescatore, a technology analyst, noted that many tech firms had reported disappointing earnings.
Tim Cook, the chief executive of Apple, said that the company was still hiring, but only on a “very deliberate basis.” Amazon also noted that it was cutting jobs due to the uncertain economic environment. Kelly Nantel, a company spokesperson, said that the company’s annual operating planning process looked at all of its businesses and determined what changes should be made.
The first sign that Amazon was cutting jobs was the posts on LinkedIn, which were from employees who were laid off. In response to the slowing down of the tech industry, Amazon announced that it would be laying off about 10,000 employees, its biggest such reduction to date. Other tech firms such as Twitter, Meta, and Snap also noted that their workers were looking for new jobs.
Over 120,000 jobs have been lost in the tech industry worldwide. Many of these companies cut their workers due to various factors. However, executives of tech firms believed that the good times would continue.
In the first nine months of this year, Meta had taken in over 15,000 employees. After announcing the layoffs, Mark Zuckerberg, the company’s CEO, said that the company had miscalculated and noted that the company’s decision to increase its investments did not go as planned.
Cut the Bloat
In response to the slowing down of the tech industry, investors have started calling out for companies to reduce their costs. In an open letter to Alphabet, an activist investor, Sir Christopher Hohn urged the company to reduce its salary and jobs. He also noted that the company should stop its projects related to driverless cars.
Elon Musk, the founder and the CEO of Twitter, is reportedly open to the idea of cutting costs at the struggling social media company.
According to commentators, he paid a lot of money for the company, and the pressure is on him to make the investment worthwhile.
Half of Twitter’s employees were laid off, and the remaining employees were promised an “extreme” work ethic. According to reports, Mr. Musk told the employees that they had to follow a strict work culture.
Scott Kessler, an industry watcher, noted that there was a lack of tolerance for companies spending a lot of money on unproven technologies, such as driverless cars and virtual reality. He also announced that investors were starting to see the high salaries and perks that some in the tech industry were enjoying. The company’s move could also help launch new businesses by attracting talented individuals who previously worked for big firms. According to Mike Malone, a veteran tech development watcher, he still believes that everything would eventually recover.