On Wednesday, Microsoft (a tech giant) announced the layoffs of its 10,000 employees which covers 5% of its workforce. This decision of Microsoft comes after the fresh round of Amazon’s layoffs which includes 18,000 job cuts. After the pandemic, the tech industry went through difficult times that resulted in massive layoffs in companies like Meta, Twitter, Salesforce, etc.
Satya Nadella (CEO of Microsoft) on Wednesday said “Today, we are making changes that will result in a reduction of our overall workforce at the end of FY2023.” The decision of Microsoft creates a new wave of job insecurity in the tech industry.
According to the experts, the reason behind the increases in layoffs is reduced consumer demand. Recently, Amazon’s Worldwide Stores CEO David Herrington mailed his employees, “The cutbacks in the division are a difficult but necessary response to the upcoming economic realities the company is facing right now.”
SalesForce Inc. announced a total 10% reduction in the workforce at the start of this month. The other side of this situation which every big company ignores is the impact it creates on future job demand. However, both of the companies promised to continue hiring in sectors like Artificial Intelligence (AI) and management.
Reasons Behind The Massive Layoffs By Tech Giants
The biggest reason behind these massive layoffs are:
- Inflation in Global Market
- Russia-Ukraine war
- Reduction in customer demands
- Planning for economic recession
- Tumultuous stock market
The wave of layoffs is expected to continue in the upcoming months of 2023. There is a need for the employees to be prepared for the same and find new ways to secure their careers. What are your views on the layoffs decision of Microsoft & Amazon?