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A wave of layoffs in the tech industry. More than 200,000 people have lost their jobs since the beginning of the year

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Tech companies have laid off more than 200,000 jobs globally in the first five months of this year, according to layoffs.fyi. Most of the layoffs were at US companies such as Alphabet (Google and YouTube), Meta (Facebook, Instagram), Microsoft and Amazon.

Because of the risk of global recession caused inflation and declining advertising revenues, a total of 202,399 people from 749 technology companies lost their jobs, while in 2022 it was 164,000. people from 1057 companies. At the end of May, Meta announced the layoff of 6,000 jobs. people, and since November 2022, the company has laid off approx. 21,000 jobs. employees. The most recent layoffs involved Facebook, Instagram, WhatsApp, a Reality Labs research unit that develops VR Meta, and Quest, a virtual reality goggle developed by Reality Labs.

goalDerick P. Hudson / Shutterstock.com

Google laid off 12,000 jobs at the end of January people, i.e. 6 percent. all employees in the world. Also in January, Microsoft announced that by the end of September this year. will release 10,000 people, slightly less than 5 percent. employed. At the beginning of this year Amazon also started laying off 18,000 jobs. people, about 5 percent. from 350 thousand company employees around the world. The company’s total workforce doubled during the coronavirus pandemic due to high e-commerce demand during the quarantine. Reddit, Disney, 3M, Yahoo, PayPal, Zoom, Dell, IBM have also laid off thousands of workers in recent months. Almost all industries in the US have increased their number of layoffs this year, but tech companies are particularly affected. According to a new report by recruitment firm Challenger, Gray & Christmas, quoted by Fortune magazine, job losses in this industry have been the highest since the bursting of the dot-com bubble in 2001, when, after several years of overvaluing online companies, investors began to sell off en masse shares of these companies.

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They were hiring during the pandemic, now they are laying off

The wave of layoffs in the US tech sector stems from companies trying to adjust to new, tougher economic conditions after large-scale job expansions at the height of the COVID-19 pandemic, Reuters reported. After a good period, especially at the height of the pandemic and lockdowns, the tech industry is entering a difficult period marked by high inflation and rising interest rates – notes in turn AFP. The highest inflation in decades and the consequences war in Ukraine it has also forced companies across Europe to make redundancies. British telecommunications giant Vodafone announced on May 16 that it would eliminate 11,000 jobs. jobs in three years. The UK’s largest broadband and mobile services provider, BT, also announced in May that it would cut its total workforce by up to 55,000 by the end of the decade. jobs. Telecommunications equipment maker Ericsson plans to cut 8,500 jobs employees worldwide as part of a cost-cutting plan. The automotive concern Stellantis, which includes e.g. Chrysler, Fiat, Opel and Peugeot brands, agreed in February with unions to lay off up to 2,000 jobs. workers from its Italian factories. Sweden’s Volvo Group said in March it would restructure its European bus business, cutting 1,600 jobs. jobs, and in itself Sweden the automaker announced in May 1,300 additional redundancies. Philips, SAP and Telecom Italia have also announced layoffs of thousands of employees

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