Amazon cuts Twitter; This comes as a surprise to everyone working in the technology industry. Or we can say it is worrying for people working in big tech companies like Instagram and Facebook.
Twitter and Meta Now Amazon to lay off workers next week It reportedly has around 10,000 employees.
Now, this echoes; They are doing this because they follow in the footsteps of Twitter and Meta for company strategies. Let’s see our findings in detail;
Why Twitter and Amazon Cut Meta’s Choices
Amazon is joining the ranks of other tech companies that have struggled with some of their layoffs recently.
In response to “an especially competitive labor market,” the e-commerce giant doubled the cash salary threshold for its tech workers earlier this year.
Days after Twitter’s initial announcement of a major layoff that would affect half of the company’s workforce, Meta made a similar announcement.
Mark Zuckerberg, the CEO and creator, announced that he would lay off 13% of the company’s workforce, or more than 11,000 employees, after finding that his plan to increase investment was not producing the desired results.
Amazon and Disney had taken similar steps before the initial shocks.
Disney, whose quarterly earnings fell to a massive loss of $1.5 billion, unveiled strategies to review costs, cut costs and halt hiring in the wake of Amazon’s decision to lay off thousands of workers.
The fact is that these large multinational companies took the risk of growing too fast, even as industry experts hoped that the depression would change as economic conditions improved.
When did everyone let their employees go?
Not only Twitter and Meta, other digital titans have also hired the freeze and firing spree. It is the biggest wave of layoffs in the tech industry since 2001, reports Kobesi Letter, a website that analyzes global capital markets every week.
Companies such as Intel (20%), Snapchat (20%), Lyft (13%), and US-based video-sharing platform Cameo (25%) laid off employees in addition to Apple’s hiring freeze.
Education technology firm Baiju laid off 1,100 people in India earlier this year.
According to data compiled by tech layoff tracker, Take Up Tech, there have been 1,149 layoffs in the tech industry so far in 2022, affecting 183,832 employees.
Where did it go wrong?
Most companies have blamed layoffs in the wake of the Covid disaster. To paraphrase Zuckerberg:
“With the onset of the Covid era, the world has rapidly shifted online, and the resulting rise in e-commerce has led to a huge increase in revenue. Some speculated that the acceleration would be permanent after the pandemic ended. I felt the same way, so I increased my investment amount dramatically. As unfortunate as it may sound, it didn’t go according to my plan.”
Additionally, he has publicly announced that, with some exceptions, he is holding off on our appointments until the first quarter of the year.
Most businesses, including Meta, have had fun with the increase in activity and expect it to continue, as Zuckerberg acknowledged.
When the Covid wave subsided and employees went back to their desks, no one expected a peaceful resolution.
As competition increases, most techies aggressively recruit the best talent in the market by paying astronomical salaries in hopes that the boom will continue.
Even Twitter’s creator, Jack Dorsey, has acknowledged that the firm’s rapid expansion is partly responsible for the company’s current turmoil.
It’s no secret that in the wake of Russia’s invasion of Ukraine, many of the world’s biggest tech companies have begun laying off workers and otherwise preparing for the coming economic downturn. Retaining new employees is the first step to reducing staff size.
The problem has been exacerbated in recent times by rising borrowing rates, high fuel prices and supply chain disruptions.
Next step
The forecast suggests that the situation may not improve for some time, despite the expectations of many. According to experts, this is due to the impact of trends on the economy as a whole.
And many still need to learn how to strike the optimal growth-profit balance. This has become evident over the past few years as tech industry giants have invested a healthy portion of their investor returns into growth through recruitment and acquisitions.
“The incentive is to spend money quickly so you can scale fast enough to justify that kind of investment from VCs,” entrepreneur Eric Ruchlin told The New York Times.
However, there is hope as people are again starting to invest in cutting-edge hardware and software, leading to a revival in the tech sector.
