Spotify announced the dismissal of 600 employees (6% the size of your team).
Amazon announces 18 thousand Layoffs!
Google confirms that it will be dismissed 12,000 employees.
Goal announces 11,000 layoffs In 2023!
Microsoft will cut 10 thousand employees!
Salesforce must turn off 7 thousand people from your company.
PagBank announces dismissal of 7% from its staff!
And the list goes on! 4.400 layoffs in Booking, 3.700 cuts in Uber, 1.900 node AirB&B… the year began confirming a trend already observed at the end of 2022: major staff cuts at tech giantsThe series of announcements is alarming and generating rumors of a "crisis" in the sector. Follow our article below and... Understand the mass layoffs at big tech companies.Possible reasons for this and the future prospects of this segment.
The setting! The reasons!
Some attribute the resignations to the national political situation (an election year with a change of leadership) and even the international situation (political instability), but curiously, the influence in this case is still less pronounced in those areas.
One of main reasons for layoffs, according to specialized analysts, is the Covid-19Yes, it's her again! But wait, why in a pandemic scenario that is theoretically already under control, the Big tech companies are suffering.Precisely because They were driven by an artificial and unique demand. stemming from social isolation.
Isolation spurred a boom in the use of digital technologies and tools.which consequently inflated technology companies through new hires and employees – all to cope with this unique scenario.
Life has “technically returned to normal” and demand decreasedAnd so, companies were forced to lay off employees!
There are other factors, of course. For example, the war between Russia and UkraineConflict generates Instabilities and uncertainties in the world economy...mainly due to its element of surprise: just as it began, it's difficult to predict the end of the confrontation or the next moves of either side. Now, faced with such uncertainty and unpredictability, Investors become more cautious.and the sector of big techs, heavily supported by financial contributions, suffers from a money drought!
The source of investment has also dried up because global inflation increaseIn order to mitigate losses and reductions in revenue, these Companies have been seeking to reorganize internally.And personnel restructuring (a nice name for layoffs) is one of the points that has the biggest impact and generates the most results in the short term.
And what about the future?
Does it belong to God? In truth, Analysts and scholars are able to project possible scenarios and their probabilities. For what's to come!
Optimism for the coming months is limited! The trend suggests that the scenario will not experience a significant recovery.There is even a probability that recession in the United States Estimates suggest a rise of 65% over the next 12 months. Economists agree, but disagree on the magnitude of this risk (some believe the risk is much smaller).
The layoff announcements from big tech companies may be a harbinger of difficult times ahead.It is a fact that the flood of investments and strong confidence in companies launched into the "unicorn" category (with a valuation exceeding US$$1 billion) is a thing of the past.
On the other hand, according to a survey by Gartner, A total of US$4.5 trillion in global investments in the technology sector are expected to be made in 2023..
There's still "money in the chamber," but both investments and spending in the technology sector will become more strategic, secure, and precise. Qualified and experienced professionals tend to excel and naturally secure better positions. Established companies, with their accounts in order, a good reputation, and a loyal customer base, have an advantage. Let's hope the future is kind to the sector! Time will tell!
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