Share this article
Latest news
With KB5043178 to Release Preview Channel, Microsoft advises Windows 11 users to plug in when the battery is low
Copilot in Outlook will generate personalized themes for you to customize the app
Microsoft will raise the price of its 365 Suite to include AI capabilities
Death Stranding Director’s Cut is now Xbox X|S at a huge discount
Outlook will let users create custom account icons so they can tell their accounts apart easier
Tech companies boost investments, record rise in revenue despite massive layoffs
A part of it is due to AI
3 min. read
Published onMay 22, 2024
published onMay 22, 2024
Share this article
Read our disclosure page to find out how can you help Windows Report sustain the editorial teamRead more
Whenever we hear about layoffs, our first thought is that the company must be under financial stress. However, that’s not always the case. Right now, layoffs at major tech companies aren’t a result of a financial crunch but have more to do with reassessment and realignment.
Microsoft, which recentlyshed 1900 jobs in the gaming divisionsoon after the Activision Blizzard acquisition, is registering record ROI. Similarly, layoffs at Meta, Google, and Amazon, amongst other tech giants, led to thousands losing their income source while these companies continue to pump billions in technologies likeArtificial IntelligenceandVirtual Reality.
According toLayoffs.fyi, approximately84,060employees lost their jobs across293tech companies in 2024 alone.
So, what do the two terms, reassessment and realignment, mean in this context? The moment you understand this, it all starts to make sense!
Massive layoffs are a result of over-hiring and changing priorities
When the Covid-19 pandemic first hit, everyone was forced into their homes. We used websites and apps to make the simplest of purchases, be it groceries, clothes, or household appliances because going out was practically impossible.
Suddenly, there was a dearth of workers in the tech sector, people who could keep the systems going, streamline the user experience, and come up with new ideas. As a result, all major tech corporations went on a hiring spree.
According to areport inCNN, in the period between 2019 and 2022, Amazon recorded a106%increase in workforce, Meta103%, Alphabet64%, Twitter63%, Microsoft53%, and Apple20%.
Everyone knew this bubble would eventually burst. And that happened as we neared 2023!
News of layoffs across the tech landscape became common, with roughly263,180employees losing jobs across1191tech companies in 2023, according toLayoffs.fyi. The same trend followed into 2024.
This happened because companiesreassessedthe demand, identified roles that were no longer critical, and proceeded with the layoffs.
That’s one factor. Another is the changing priorities or companies realigning their strategies according to the market demand, as has always been the case, even during the period of pandemic.
Companies are now looking for people well-versed inArtificial Intelligence, because, even in its infancy, AI is delivering results. Companies that integrated generative AI have reported positive results, and others will follow suit. And that needs employees who can help organizations adapt to the change!
Besides, even if we ignore the financial aspect,Artificial Intelligenceremains key to consumer-centric products. For instance, AI assistants likeCopilot in Windows 11andGoogle Gemini. So, that’s where most of the jobs are right now.
Nonetheless, it’s also a fact that AI is taking up jobs. EvenBill Gates has expressed reservationsabout this aspect of the latest technology. But there’s another side to it!
Adopting AI in the workplaceis no longer optional. Ultimately, recruiters want people with AI skills. So, the sooner you move, the better your chances of landing a suitable job or keeping the current one.
What’s your take on layoffs across tech companies in 2024? Share with our readers in the comments section.
More about the topics:Google,microsoft,Technology
Kazim Ali Alvi
Windows Hardware Expert
Kazim has always been fond of technology, be it scrolling through the settings on his iPhone, Android device, or Windows PC. He’s specialized in hardware devices, always ready to remove a screw or two to find out the real cause of a problem.
Long-time Windows user, Kazim is ready to provide a solution for your every software & hardware error on Windows 11, Windows 10 and any previous iteration. He’s also one of our experts in Networking & Security.
User forum
0 messages
Sort by:LatestOldestMost Votes
Comment*
Name*
Email*
Commenting as.Not you?
Save information for future comments
Comment
Δ
Kazim Ali Alvi
Windows Hardware Expert
Kazim is specialized in hardware devices, always ready to remove a screw or two to find out the real cause of a problem.
