At a time when the whole world is facing a huge economic crisis, Big Tech giants are no exception and hence, we can see them cutting down jobs of many of their employees.
Google's parent firm Alphabet in mid-January announced plans to cut 12,000 or 6 per cent of its global workforce, via an email by its chief executive officer Sundar Pichai.
Similarly, Microsoft also informed of laying off 10,000 employees. And Yahoo, last week announced of cutting down 20 per cent of its workers.
The Corona Pandemic, followed by other health hazards and ongoing crisis including Russia’s Invasion of Ukraine-that will mark a year in last week of February- are the components responsible for the economic recession.
However, these components are not merely responsible for these Tech Giants bringing down number of employees.
Big tech companies slashing manpower is a complex issue that is driven by a variety of factors, including changing market conditions, new technologies, and shifting business strategies.
Nepal Khabar sheds light on primary reasons for this trend.
Automation
Automation and artificial intelligence are changing the way companies do business.
Many tasks that were previously performed by human workers can now be done more efficiently by machines.
As a result, companies are reducing their workforce and relying more on technology to improve their operations.
Competition
The tech industry is highly competitive, and companies are constantly seeking ways to cut costs and improve their bottom line.
By reducing their workforce, companies can reduce their expenses and remain competitive in a challenging market.
Mergers and Acquisitions
Mergers and acquisitions are a common occurrence in the tech industry, and when two companies come together, there is often overlap in their workforce.
To streamline operations and eliminate redundancies, companies may choose to lay off employees.
Shift in focus
Companies may also choose to reduce their workforce as they shift their focus to new products, services, or markets.
This can lead to job losses as companies look to streamline their operations and realign their resources with their new strategy.
Economic factors
Economic recessions and other financial challenges can also lead to companies cutting their workforce. In times of economic uncertainty, companies may choose to reduce their expenses and focus on their core business operations.
While layoffs can be difficult for employees and communities, companies must make decisions that are in the best interest of their long-term success.
