The economic crisis is hitting technology hard. More than 120,000 unemployed employees at Apple, Facebook or Microsoft (…)

JVTech News The economic crisis is hitting technology hard. More than 120,000 unemployed employees at Apple, Facebook or Microsoft (…)

The years follow each other, but they are never the same. And for that, the tech giants paid the price in 2022. After three years of growth, layoffs have flowed freely, be it on the side of Google, Amazon or Meta.

2022 was a turning point for the big tech industry. After years of growth and expansion, some of the world’s largest companies are faced with the classic problems that plague every small business in the world. Inflation, increase in the price of raw materials, balance that does not balance, projects that fail, but also and above all staff that must be reduced.

uh yes all good things must come to an end, even for tech giants who always seem to overlook problems. Today, large technology companies face a problem that other industries have faced in the past: normality, or rather, crisis. AND nothing better sums up the state of impasse the sector is in than the announced wave of layoffs of all major companies in the previous fiscal year. The latest to join this trend are Amazon and Microsoft. The e-commerce giant has announced a new wave of layoffs (18,000) during this first quarter of 2023. For its part, Satya Natella’s firm has to announce the loss of 11,000 jobs, which would then represent nearly 5% of its workforce.

120,000 is the estimated number of professionals who will lose their jobs in 2022 in the United States. And the beginning of 2023 does not seem to indicate a lull, aswe can already add nearly 30,000 layoffs (counting those of Amazon and Microsoft) to this already impressive number. As you no doubt know, most of these layoffs were announced in November, when Meta (11,000), Amazon (10,000) and Twitter (3,700, or about 50% of their workforce) went deep and honest in their teams . The reason? The pandemic. Many of the big tech companies have done massive hiring during this global health crisis. But almost three years later, the latter now has to face a global economic slowdown and therefore pay a severe backlash.

Photo: Visual Capitalist

The economic crisis is hitting technology hard.  More than 120,000 unemployed employees at Apple, Facebook or Microsoft (...)

Companies like Tesla and Apple have also had to rethink their strategies as they largely dominate their respective business sectors.. Elon Musk’s firm cut 3,500 jobs in June 2022, while Apple announced a hiring freeze in fiscal 2023. Google, for its part, has qualified 10,000 employees as “Poor Performer”. it Capitalist Visual Chart helps to understand the extent of the phenomenon.

Through the quotes in this infographic, therefore we partially understand the reasons for these multiple bloodsheds. An inefficient company that was never profitable and enjoyed great financial stability only thanks to the support of investors (Twitter) with rising interest rates and runaway inflation. A company entering a major transition in a shaky metaverse (Meta). Big tech companies wanted to do everything in a very short time (autonomous cars, virtual reality headsets, advertising, software, …) and the crisis ended up catching them. – at least for a moment.

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