After years of seemingly endless expansion, the US tech industry has hit a brick wall. The slowdown in active development inevitably led to a reduction in cash injections. A sudden pay cut can be devastating to anyone, but the recent wave of cuts has hit skilled workers the hardest.
Tech companies grabbed headlines in 2022, In addition to takeover lawsuits and endless data breaches, the industry is also seeing layoffs. Many of them. Crunchbase calculated that more than 90,000 workers in the US tech sector have been laid off in mass job cuts in 2022.
Amis Lab specialists tracked the most notable, here are just a few of them:
- Meta around 11,000 employee
- Amazon around 10,000 employee
- HP around 6,000 employee
- Cisco around 4,000 employee
- Twitter around 3,700 employee
Looks massive, doesn’t it?
Some companies have cut staff due to the impact of the COVID-19 pandemic, while others have pointed out over-employment during periods of rapid growth. But it’s not only about Tech giants.
Startups are also feeling the pressure, especially those that have benefited from the slowdown in the pandemic boom. Late-stage valuations, in particular, have started to decline, with startups saying it’s much harder to raise new funding in this environment.
State markets have been hit hard in 2022, and that has spilled over into private markets. Inflation fears, rising interest rates, and geopolitical issues all contribute to the stock market’s roller coaster.
What’s next after massive job cuts?
Tech layoffs will grow exponentially and rapidly in 2023, with experts predicting a global recession on the horizon, and unfortunately, further staff cuts are expected next year. It may not be as massive as this year, but given the frequency of political and economic upheavals in the world, the situation could turn for the worse.
How can companies avoid redundancy?
If you care about business performance, technology solutions can help streamline your workflow, maximize performance, and save you money every month. This can reduce the need for redundancy in some situations. The proven fact is that companies who outsource part of their operations save more than a third of the budget, while adding flexibility and scalability to solutions. In this case, you will not have to hire some of the employees, who then will need to be fired and left to fend for themselves.
Companies’ decisions to reduce staff were made based on the wrong approach and changes in the market. Now is the time to learn from the mistakes of others and make smart investments that will give you the greatest ROI.