Why Tech Giants Laid of Thousands of Employees in 2022 & intending to Fire more in 2023?
Did someone ever thought that the employees working at tech giants will ever face such a big job redundancy in 2022? After years of money flowing like a water and hiring splurges, Technology companies are now tightening its belt
It was somewhere clear in the minds of business analysts that sooner or later this moment would come. After numerous affluent eons of spending money without confines on recruiting expensive employees, renting offices in dreamy locations, refining conditions and luxury parties, technology companies were forced to suddenly bang on the brakes and quickly recalculate their route. The primary burden came from the ‘people with the money (Investors)’ some of whom are experts with lots of experience with crises, such as the giant American fund Sequoia, which demanded that companies start making immediate cuts and adjust to the crisis that was occurring. Technology companies in the US and Europe were quick to respond and fired about 20,000 workers in a very short time. Giant companies such as Robinhood and Coinbase, which are on the seam between high-tech and the capital market, fired thousands in one day. Giant companies such as Meta and Intel, whose stability is not feared, have also announced a freeze on recruitment considering the existing market scenario.
The layoffs in Europe and US were convoyed by lessening investment and growing investor concern. Even Alon Musk tweeted that the company he planned to acquire must cut its workforce quickly. Later, as usual, he rushed to calm everyone down, but the message of the crisis had already been received
Investors in Europe and US are putting pressure on the tech companies to maximize profit, reduce expenses, and the companies are showing their initiatives in the form of huge laying offs. Many businesses have amassed quite a bit of stout in recent years. The marketing departments were bursting with employees, consultants, associates, and social media people. Start-ups hired workers even when there was no immediate need for them, simply because the demand and competition for quality workers was silly. The development departments sensed they were in a clash with all the other tech companies, and hired as many employees as they possibly could
The consequence was that many companies grew from a few employees to hundreds, in a very short time. Some of them have as a result met difficulty in building an organizational environment or integrating orderly work processes among the employees of the magnified company.
Yoni Luxenberg, CEO of the company and one of the founders: “We made a difficult decision to say goodbye to some talented and good colleagues. The global situation is changing, and there is an increase in inflation and an economic slowdown. We have embarked on a process of organizational change to streamline some areas of the company, but at the same time continue to increase the supply of products to ensure success and growth for years to come."
Getir, the $12B instant delivery startup, plans to lay off 14% of staff globally and cut aggressive expansion plans. The Turkish company employs some 32,000 people in the nine markets where it operates, which would work out to 4,480 people impacted by the downsizing.
Klarna, Mfine , Carvana, Condenast, Peloton, Bytedance , Cazoo, Gorillas, Nuri, Hopins are among those companies who either planning or already laid of thousands of employees in 2022 and they are eying to cut more jobs in the first quarter of 2023
But that is not it, when high tech giants fire employees like that, it impacts on other Tech startups too those who are relying on the tech giants and most of their revenues are coming from there. Unfortunately, they left with no option other than firing already reduced resources to cut the cost and name it as 'Downsizing'