Tech Companies are constantly in the news and often touting their next great product. However, the tech news cycle recently hasn’t been dominated by the latest gadget or innovation. Instead, layoffs These are headlines.

 the last yearGlobally, over 70,000 people have been laid off Big Tech companies—and that doesn’t count the downstream effect of contractors (and Other organizations may lose business due to tighter budgets.

Was there a reason for this huge shakeup? What does this mean for the industry? and you?

What’s the damage?

Many employees were fired by major tech companies since the end the panicky hiring wave. Alphabet (12,000 employees), Amazon (18,000), Meta (11,000), Twitter (4,000), Microsoft (10,000), and Salesforce (8,000).

The spotlight is also shared by other household names like Tesla, Robinhood and Snap. and Spotify – but their layoffs They are much lower than the ones mentioned above.

Importantly, these figures don’t include the downstream layoffs, such as advertising agencies laying off staff as ad spend reduces, or manufacturers downsizing as tech product orders shrink—or even potential layoffs There is more to come.

And let’s not forget the folks leaving voluntarily because they don’t want to come into the officehate their managers, or aren’t keen on Elon Musk’s “hardcore work” philosophy.

These are the effects of everything mentioned. will Feel at home in consulting, marketing and advertising and Companies reduce their spending by creating manufacturing areas and It can be redirected towards innovating in AI.

So what’s driving the layoffs?

Advertising spend was cut in the coal mine canary. and revenue. Advertising is a major source of funding for many tech businesses. As long as the income stream is healthy, which was the case especially in the period leading to COVID, so were expenditures on personnel. As advertising revenue decreased last year – in part due to fears over a global recession triggered by the pandemic – it was inevitable layoffs It would be a good idea to follow.

Apple is an exception. Apple is one exception. head count in recent years and as a result doesn’t have to shrink staff numbers (although it hasn’t been immune to staff losses due to work-from-home policy changes).

What does this mean for consumers?

Even though headlines are often shocking, layoffs won’t actually mean a whole lot for consumers. All in all, it’s important to work on tech products and Services are still growing.

Twitter even which many predicted to be dead by nowThe?, is searching to diversify its Various streams of income

That said, some pet projects such as Mark Zuckerberg’s Metaverse likely won’t be further developed the way their leaders had initially hoped. This is evident in the layoffsThese are all concentrated at Amazon or Microsoft and These big (Meta) innovation High-ranking leaders have taken risks.

Leaders have been able to make investments in innovation over the years thanks to low interest rates, high COVID related consumption and low interest rates. This investment, except in AI, is slowing down or dead.

What about those who have lost their job?

For those affected, layoffs could be very devastating. However, who are the people affected?

Most people who lose their job are educated. and Highly employable professionals You are given them severance packages and support These often go beyond the legal minimum requirements. Amazon is an example of this. losses would be in tech staff and They support those who are there for them, not warehouses.

It is important to have a Big Tech Employer in their CV will Please be a real advantage as these individuals move into a more competitive employment market, even if it doesn’t look like it will be quite as heated Many had feared the worst.

This is what it means for the industry.

Experiential tech workers looking for new work salaries Are likely to deflate and Higher levels of experience and Education will Please be required to secure employment. These corrections in the industry are potentially a sign it’s falling in line with other, more established parts of the market.

Most recent layoffs are eye-catching, but they won’t affect It has a significant impact on the economy overall. In fact, even if Big Tech Although 100,000 employees would have been laid off, this still represents a tiny fraction of the total tech workforce.

The numbers reported may seem large, but they’re often not reported as a proportion of overall wage spend, or indeed overall staffing. They are for some tech companies. just a fraction because of the large amount of hires made during the pandemic.

Big Tech It is still an important employer and These are its most popular products will Keep making an impact in many areas of your life.

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