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?
Tech companies are not immune to having to adapt and survive. In fact they are often at the forefront of taking risks and trying new things, which may not pay off and need to be scrapped later down the line. What you will find however is that most of those people who were laid off will have a premium company listed on their CV, enabling them to have an advantage when trying to secure new employment elsewhere. I'd even say we're past the Covid effect, these are just regular expansion and tightening that takes place, these companies just have the largest workforces but it will be happening all throughout the economy. It's the sign of weak leadership if companies do not change over time and redundancies are often part of such change.