Amazon layoffs Twitter; is a surprise for all the individuals working in the tech industry. Or we can say it’s alarming for individuals working in big tech companies like Instagram and Facebook.
Twitter and Meta now Amazon will fire its employees next week. According to reports, it has about 10,000 employees.
Now, this is the buzz; they are doing this because they follow in the footsteps of Twitter and Meta for company strategies. Let’s get to know the details according to our search;
Why Amazon layoffs like Twitter And Meta
Amazon is joining the ranks of other tech companies that have recently struggled to keep their employees by laying off some.
In response to “a particularly competitive labor market,” the e-commerce giant more than doubled the cash salary threshold for its tech employees earlier this year.
Just a few days after Twitter’s initial announcement of a massive layoff that would affect half of the company’s employees, Meta made a similar announcement.
Mark Zuckerberg, CEO and creator announced that he would be laying off 13% of the company’s staff, or more than 11,000 workers, after discovering that his plan to raise investments had not yielded the desired results.
Even before the initial surprise wore off, Amazon and Disney had taken the same step.
Disney, whose quarterly earnings plummeted to a massive $1.5 billion loss, has disclosed its strategy to evaluate expenditure at all divisions, slash costs, and freeze hiring in the wake of Amazon’s decision to lay off thousands of staff.
The fact remains that these large MNCs took the risk of growing too quickly, even if industry experts anticipate the gloom would change once the economic situation improves.
When did everyone let their employees go?
Other digital titans, not just Twitter and Meta, also went on hiring freezes and firing sprees. It is the largest wave of layoffs in the technology industry since 2001, reports The Kobeissi Letter, a website that analyses global capital markets each week.
Companies such as Intel (20%), Snapchat (20%), Lyft (13%), and US-based video-sharing platform Cameo (25%) have also laid off workers in addition to Apple’s hiring freeze.
The education technology firm Byju laid off 1,100 people in India at the beginning of the year.
So far, in 2022, there have been 1149 layoffs in the technology industry, affecting 183,832 employees, according to data compiled by Trueup Tech, a tech layoff tracker.
Where do things go wrong?
Most companies have blamed layoffs on the fallout from the Covid disaster. To paraphrase Zuckerberg:
“At the outset of the Covid era, the world shifted swiftly online, and the resulting increase in e-commerce fueled extraordinary revenue growth. Many speculated that this quickening would become permanent after the pandemic was over. I felt the same way, so I upped our investment volume dramatically. As unfortunate as it may seem, this did not go according to my plan.”
Moreover, he publicly announced that, with a few exceptions, he was extending our hiring freeze through the first quarter of the year.
Most businesses, including Meta, had fun with the surge in activity and hoped it would continue, as Zuckerberg admitted.
Nobody expected the quiet settling in when the Covid wave died, and workers returned to their desks.
As competition heated up, most tech behemoths aggressively hired the market’s best talent by offering them astronomical salaries in the hopes that the boom would continue.
Even Twitter’s creator, Jack Dorsey, has admitted that the firm expanded too rapidly and that he bears some of the blame for the company’s current state of disarray.
It is no secret that in the wake of Russia’s invasion of Ukraine, many of the world’s largest technology companies have begun laying off workers and otherwise preparing for the imminent economic downturn. Stopping new hires is the first step in reducing staff size.
The problem has been exacerbated by the recent rise in borrowing rates, the high price of fuel, and supply chain disruptions.
The Next Steps
The forecast suggests that the situation may not improve for some time, despite the hopes of many. According to the experts, this is due to the trend’s effect on the economy as a whole.
And many people still need to learn how to strike the best growth-profitability balance. It became clear during the past few years as the tech industry’s titans invested a healthy portion of their investor returns in growth through hiring and acquisitions.
Entrepreneur Eric Rachlin told The New York Times, “The incentive is to spend the money soon enough so you can expand fast enough to justify the kinds of investments V.C.s want to make.
However, there is hope, as people are again beginning to invest in cutting-edge hardware and software, leading to a revival of the tech sector.