Not a day goes by without a tech company announcing major job cuts. Today Paypal and Block (both payment service providers) have announced a total of 3500 job cuts, and recently Salesforce, Microsoft, SAP, Google, Ebay etc. have also done so. According to
https://layoffs.fyi, 25,000 documented tech jobs have already been cut this year.
What do you think? Is it just a shrinkage and normalization after the strong build-up of the workforce during Corona or a long-term trend that will accelerate through the use of AI?
Downsizing is something that is very necessary in every organization especially when it is recommended as a way to enable the company remain relevant and successful. Most times it happens naturally, but at times there are some unforeseen circumstances that globally induce downsizing such as the covid-19. But I have something to say, if a random company is downsizing we could see it as a normal thing but if a tech company is downsizing, it shouldn't be seen as a normal thing because something is definitely wrong somewhere.
It is not all about the advent of the AI and it is not also an indication that AI is taking over the position of man in the company. Even if anyone has to allege that, they might not be completely out of order. But when downsizing comes to take company I think something else is a major factor and not AI. What I consider as the major factor is the freelancing. While there are many people who are interested in working and earning without committing 100% to a particular company. It encourages the companies to dismiss their original staff such as to get rid of some certain expenses that is being attached to staff permanency. Hire a random person and get him paid than hire one person, pay him and still owe him other gratuities.