The entire tech industry is still dealing with a slow year, and companies have to cut costs to remain relevant.
Microsoft plans to cut down on 10,000 of its employees, which is 4.5% of the tech giant’s over 220,000-strong workforce, this year. This round of layoffs will be completed by the third quarter of the year. The company says this decision is due to “macroeconomic conditions and changing customer priorities.” The employees were informed of this action by Microsoft CEO via a memo on the 17th of January.
Microsoft is not the only tech giant making massive layoffs; Google’s parent company Alphabet also announced that it would be laying off 12,000 positions, which comprise around 6% of its total workforce. This is Google’s biggest round of layoffs ever. Google CEO Sundar Pichai had this to say concerning the impending layoffs: “Google expanded too quickly during the pandemic and now must refocus its business.”
Big tech went on an aggressive hiring boom during the pandemic, hiring individuals by the tens of thousands, but it seems they cannot keep up the payroll for such a multitude.
Apart from Microsoft and Google, other big companies have also announced that they will be laying off employees. Amazon is laying off 20,000 employees, and Meta is laying off 11,000, making over 50,000 tech workers unemployed in 2023.
As far as the economy is concerned, there will always be economic instability, and it is the job of companies, especially Fortune 500 companies like these, to plan and plan well, but due to all these sudden layoffs, Did these companies plan for uncertain economic conditions? Because if they did, this layoff spree happening all over the world would not be occurring.
This will drastically reduce the number of available tech jobs worldwide, as over 70,000 IT professionals will be losing their jobs this year, sending them into an unstable economy to start all over.
If these industry giants are laying off workers by the thousands due to the economic downturn, who will hire all these professionals?
For the next few months, the tech employment and recruitment industry will become a battleground, and it is going to be survival of the fittest.
Join the conversation; follow us on Facebook, Instagram, and Twitter at GoSpeedHub.
Photo By Bryan Angelo
