A common word being said across all sectors during this tumbling economic crisis is “firing”. From Google to Meta and from Amazon to Twitter all the tech giants are laying off their employees in thousands to set back their utilization of resources efficiently.
Why is it happening with layoffs?
Due to government restrictions, people were left at home during the Covid wave and lived solely online. Online content and social media became a part of people’s daily routines for the whole day. As per Statista reports the average time daily spent online has increased to 65 minutes from 54 and 56 minutes years before. TikTok, Pinterest, and Reddit saw a huge jump in the growth of usage. So, to full fill, the user needs and development of the application companies began hiring thousands of people by giving lucrative salaries within months of schedule. Lakhs of jobs were added in that period just to fulfill the usage.
But as covid restrictions got eased, people returned to their routine lifestyle leaving online adoption.
This was the main reason that affected the tech giants which is now showing as a result of firing.
What are the future prospects of layoffs?
Following the pandemic, many tech startups evolved, which resulted in a surge in funding from VCs. There has been a notable rise in salaries for mid and senior-level developers due rise in their demand. Giants also followed the same path so as startups. But this was only for a couple of months until the market got saturated. At present artificial Intelligence is a major threat to IT employees because it does all the work replacing a developer and that too at a cheaper cost. Chat GPT has the ability to code in different programming languages just in a few seconds without many difficulties.
Why you should be aware of layoffs
The situation may turn the sector single handily when technologies replace human beings. I’m clear that AI may not replace humans but it can decrease the number of humans through its automation. A 100 workforce company can be replaced with an AI-integrated 20 workforce with cost-effective and less time-consuming.
How to get ready to face challenges on Layoffs
It is clear that in the forthcoming days, there are tough challenges that can evolve in the tech sector but can spread into the entire market. Freezing and firing can even continue this year as well since the inflation effect has not been eased yet. There are fears that the Recession may arrive in 2023 from the experts.
- Always be prepared for tomorrow
- Upgrade with new skills
- Don’t expect too much about the salary
References
https://www.cnbc.com/2022/12/23/why-everyone-thinks-a-recession-is-coming-in-2023.html