Tech Giants Are Laying Off Thousands Of Employees In 2022, But Why?

Laying Off Thousands Of Employees
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Every day news is flashing that in 2022 all of sudden several tech giants are laying off their employees. Giants like Facebook now Meta, and Amazon sent home thousands of people who were working for them for several years.

As per New York Times Amazon has laid off approximately 10,000 employees. Mark Zuckerberg a Meta CEO, posted an apology video after he let go of 11,000 employees from Meta as the Metaverse project turned out to be highly cash-burning and a headache for Mark Zuckerberg. Other major players who let thousands of workers are Microsoft, HP, Byjus, Morgan Stanley, and the list goes on.

Twitter has fired almost more than half of the staff after takeover.

Startups are also sending more and more people home.

You could be wondering why on the planet earth are they doing so. There are more than one reasons why this is happening.

First and foremost, the reason is the roaming clouds of recession which lead to a decrease in business and eventually profitability of companies.

Post to the COVID-19 pandemic several companies went on the verge of bankruptcy those who survived had to shut down many units for cost-cutting. Laying off is also part of cost-cutting.

Companies restructuring themselves and shutting down those units that are not profitable and those that have fewer chances of becoming profitable in recent times. Because they don’t afford to burn more cash until and unless business and earnings come back on track.

Furthermore, some companies are not willing to afford to keep low-performing employees as they do not contribute significantly to the productivity of the companies plus companies have to pay them. So it becomes feasible for the management to let them go. This can be helpful in two ways one is it is cost effective and it may not affect the productive potential of the company as they were reportedly low performing.

Google is to let go at least 10,000 ‘low performing employees’ which will start from the start of 2023 as per Livemint.

Also, some companies don’t have plans to expand for some time so they don’t want to keep excess employees. So better to let them go as you can always rehire them back when required.

Job losses may affect the finances of employees as they may have to stay out of the job for a little longer period of time because almost all the companies slowed or halted hiring.


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