Instead of being in the news for major innovation, tech companies are making headlines for laying off their employees in big chunks. More than 70,000 people have been laid off by tech giants in the past year.
Amazon sacked 18,0000 people, Alphabet Inc. fired 12,000 employees, Meta laid off 11,000 staff members, Microsoft discharged 10,000 of its workforce, Salesforce dismissed 8,000 people, and Twitter let go of 4,000 employees.
Other companies that fired their employees include Netflix, Tesla, Snap, Robin Hood, Spotify, and Coinbase but their numbers are significantly less.
However, there is no information about the downstream layoffs like manufacturers downsizing, or advertising agencies firing people. The knock-on effects would be experienced in the marketing, consulting, manufacturing, and advertising spaces as they would also lay off people and allocate their budget for AI innovations.
Most tech companies get most of their revenues from advertisements. Since companies have lowered their advertising budget, the tech companies in turn are suffering. Fear of a global recession played a major part in this mishap.
Effects on consumers
Consumers would feel no to little effect with everything going around as tech products and services are still expanding. However, certain things that emerged due to the pandemic may not sustain as the pandemic is not much of a threat anymore.
Effects on the affected employees
Most job cuts happened in the tech field. Fortunately, the people who were laid off are highly educated and experienced individuals. They are extremely employable professionals. When they lost their jobs, they were given good severance packages and support.
For being employed with big tech giants gives them the edge to get jobs in other companies or start-ups. Although, there may be struggles, competition, and less pay they would be able to survive hopefully.
Effects on the industry
There would be no to little effect on the industry as a whole. Even after major job cuts, it is still a fraction of the workforce in these big companies. The companies would continue to be big employers and shall go on impacting everybody’s lives in various aspects.