Thursday, February 2, 2023

Massive layoffs in technology sector: 75,017 employees have been laid off so far in January

According to Ramon Martinez Flores, professor and expert in finance and economics at the School of Banking and Commercial, sales will decline in 2023 as customers in its two biggest markets, the United States and China, fight against an economic slowdown and less investment in companies. , due to investors’ interest in more ‘safe’ companies.

“Investment in technology is not going to stop, but it will be more thoughtful. Companies will also continue to develop, but their growth will be slower, they will have to create new models to attract attention,” says Martínez.

According to the professor, investors are placing fewer bets on prototyping, as many companies have had to shelve their plans for more experimental areas.

The clearest case on this issue was Meta, which laid off 11,000 employees, 13% of its workforce, and forecast a weak end to the fiscal year in October, where the decline in its shares has already accumulated 72% losses and For which the company has had to slow down its ambitious rush into the metaverse.

This decline in popularity has resulted in less capitalization of big tech when presenting their results. Amazon sees its market capitalization drop by about $130 billion after it reports its third quarter for 2022.

The e-commerce company has already reported layoffs of 18,000 people worldwide, apart from shutting down its charity program. AmazonSmile ,

How many tech companies have mass layoffs?

22,600 people lost their jobs in just one week. Microsoft announced staff cuts of 10 associates, while Google Announced that 12,000 people would stop working with the company. the last company that cutout was spotify Which will bite 600 people.

In short, according to true up , a system that monitors the balance between dismissals and hiring, only in January this year technology companies added 75,017 people who were dismissed. From February 2022 to now, the layoffs in the tech industry represent 315,584 people.

For his part, Brent Thill told Fortune that it The wave of layoffs will continue And this will affect small and big technology companies.

Martinez and Thill agree that investors will be very picky and, in terms of enthusiasm for Latin unicorns, expect a challenging 2023, where enterprises will have to seek funding from a variety of organizations and venture capital to be born.

Among the companies that reported outages, Netflix, Cisco, Amazon, HP, Twitter and Xiaomi all saw massive cuts.

Nation World News Desk
Nation World News Desk
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