Last year saw the highest yearly total of tech job cuts since the Great Recession, with companies cutting more than 720,000 jobs from their budgets.
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00:00 Layoffs are hitting the tech industry hard with companies cutting more than 720,000 jobs from
00:04 their budget last year. And companies like Google and Amazon have already announced more layoffs for
00:08 2024. Here are some trends causing these mass tech layoffs. During the pandemic, the industry
00:13 entered a wild hiring spree. Market research company Challenger Gray and Christmas told Fortune.
00:18 This resulted in overhiring and now companies are realizing they need to reduce their workforce. The
00:22 rise of AI has led companies to prioritize AI focused positions while downsizing and non AI
00:27 departments. Post pandemic companies are preparing for slower growth, higher interest rates and the
00:32 impact of falling inflation leading to layoffs. Companies are also searching for profitability
00:36 and therefore cutting costs in certain departments. For example, Amazon just cut hundreds of employees
00:41 from Twitch, Audible and Prime Video in an effort to reduce costs. A lot of these layoff announcements
00:46 also occur in January because it aligns with the corporate budget calendar. Job cuts tend to spike
00:50 in December and January as companies prepare for structural changes heading into a new year.