Massive, massive tech layoffs have been going on for so long that, on one level, they barely register as news. “Who’s next?” As many tech companies over-invested in staff to meet increased demand during the pandemic, then came the post-pandemic economic crisis, reduced investment and reduced customer spending. Layoffs were, in a way, inevitable. To weather the recession and shrinking tech sector.
But with every major large-scale technology layoff, at least the people in the small towns of town are hurting and making life difficult.
So firing two big techs in the space of 24 hours is a big double punch.
Alphabet, the owner of Google, has announced that it will lay off 12,000 employees, representing 6% of Alphabet’s workforce worldwide. CEO Sundar Pichai said he took “full responsibility” for the job cuts, but very notably, his job is unlikely to result in him being laid off, so this It remains unclear what “full responsibility” means in the context.
The retirement package has at least the sense that Alphabet is sorry to cut off 12,000 families around the world. It includes a weekly salary, paid vacation, and six months of health insurance payments. Layoffs aren’t ideal yet, but especially for workers who have been with the company for several years, this is a package that shakes Alphabet’s “talent qualifications” into the air, and many people in the tech industry. I’m trying to find an alternate role. Cut jobs like dandruff, or at least cause a hiring freeze for the rest of 2023.
For example, Microsoft laying off 10,000 staff, or Meta cutting 13,000 staff from their infrastructure, layoffs don’t work. And they’ll get laughed at by Amazon for pushing 18,000 homes to the curb.
Spotify joins the trend.
It also turned out that there were no vacancies at the inn on Spotify. The music streaming service followed Alphabet’s announcement just hours later with its own declaration that it would cut off 6% of its global workforce.
Admittedly, the number of real families looking for a way to keep the lights on is much smaller, with a total staff of around 10,000, despite the incredible visibility of audiences around the world. But percentile job cuts are pretty much in line with the tech industry’s biggest players.
Like Alphabet, Spotify president Daniel Ek said he “takes full responsibility for the moves that got us here” when announcing the layoffs on the company’s blog, but Ek said he would not let the company down. It is ambiguous what that responsibility means, as it seems to stay. The company is well placed as it will lose about 600 staff. However, Dawn Ostroff, chief executive of the content and advertising business, will be leaving the company “as part of a broader organizational restructuring.”
Spotify expects to pay approximately €35 million (approximately $38.7 million) in severance payments for its actions. Naturally, it’s not the world we actually live in, so the payoff will be gradual.
The company has yet to turn a net profit for the year, but has invested heavily since its launch. This is the main reason for its worldwide popularity.
An overly ambitious investment.
“In hindsight, I was too ambitious to invest in earnings growth ahead of time,” Ek admitted in response to the layoffs.
All sectors of the industry understand that they will have to resort to layoffs as a way to ensure a lean profile in tough economic times, but the boom across the tech sector in the pandemic era and subsequent recession And bust waves of hiring and firing that begin to look like the makings of “running around” talent in the industry – as jobs at some of the biggest tech companies on the planet are understood to be itinerant rather than permanent. Meanwhile, Alphabet’s billionaire shareholders say laying off 6% of their global workforce will never be enough, expanding layoffs to at least 20% of their workforce. I am requesting you to
Whether this practice of laying off staff during difficult times will affect the industry’s long-term hiring capacity Next We do not yet know when we will suddenly need an influx of staff. But for now, the direction of staff movement across the tech industry is firmly anchored in what looks like the rest of 2023, with standard downturn factors and special circumstances like Russia, for example. Depending on the combination, it can be significantly longer.The gas pipeline chokehold stays in place.
The direction is down and out as many large tech-based companies are enforcing a complete hiring freeze. The question of where experienced technical staff should work while maintaining their skill base until the next time the tech industry deems it necessary remains an open question.