It's been over a year since the first wave of layoffs by tech companies first began, and the workers in the sector are still feeling the effects now. CEO of one of the tech giants, Mark Zuckerberg, explained why the job cuts are still happening.
Why Tech Companies are Resuming Layoffs
Working in the tech sector right now is not as secure as other jobs, especially since companies seem to be determined to conduct job cuts to make the business more profitable. Meta CEO Mark Zuckerberg explains that all this started with the pandemic.
People are stuck at home due to the social distancing and quarantine protocols set by the government, which means they have nothing else to do but browse online for shopping and content. This resulted in tech companies needing more manpower to accommodate the increase in use.
However, when the pandemic started to die down people began going back out. Tech companies have no choice but to adjust to the ad and active user rates by reducing the workforce. At first, this was a real concern for tech CEOs and what it means for the business.
"It was obviously really tough, we parted with a lot of talented people we cared about," Zuckerberg expressed. However, this provided businesses perspective into what a "leaner" workforce could mean. "But in some ways actually becoming leaner kind of makes the company more effective."
As mentioned in Business Insider, Zuckerberg said that tech companies are still thinking about ways to make operations more efficient, and that involves restructuring the company, eliminating management levels, and removing employees by the hundreds.
AI's Role in Recent Layoffs
It's undeniable that AI has had a role not only in job opportunities but in current employment as well. Artificial intelligence has become the fastest growing technology and many companies are joining the AI race. While this can be beneficial for consumers, employees are at the risk of being replaced.
When asked whether AI played a huge role in layoffs, Mark Zuckerberg said he thinks of was "more due to companies trying to navigate COVID," but many experts believe that job cuts were not only to replace human workers but also to allocate resources in the development of AI.
It's not exactly cheap to develop the emerging technology, and companies have to find ways to reduce costs to fund the project. Unfortunately, the impact falls on employment in various departments, affecting tens of thousands across businesses.
According to CNN, several companies have cited major investments into AI technology as their reason for layoffs. It's either that or the job cuts are closely followed by the announcement of new AI technology developments within a company.
In just the first two weeks of the year, over 5,500 employees were already laid off in the tech sector. Giants like Amazon and Google were among those who announced reductions. What's worse is that companies are still feeling the effects of overhiring due to the pandemic, and the AI factor is just in addition to that.
