Big Tech companies continue to sack employees. They have listed various reasons behind the move, over-hiring, uncertain global macroeconomic conditions, strong tailwinds from the Covid-19 pandemic and more. Meta Cuts 11000 jobs, Meta Spokesperson said, At the start of Covid, the world rapidly moved online, and the surge of e-commerce led to outsized revenue growth. Many people predicted this would be a permanent acceleration that would continue even after the pandemic ended. Meta did too, so Meta made the decision to significantly increase their investments. Meta Spokesperson further said, Unfortunately, this did not play out the way it expected. Not only has online commerce returned to prior trends, but the macroeconomic downturn, increased competition, and ads signal loss have caused their revenue to be much lower than They had expected.
CEOs of major Tech Companies defended their lay off.
Google CEO said, Over the past two years they have seen periods of dramatic growth. To match and fuel that growth, they hired for a different economic reality than the one they face today. They are confident about the huge opportunity in front of them thanks to the strength of their mission. The value of their products and services, and their early investments in AI. To fully capture it, they’ll need to make tough choices,” according to Alphabet and Google CEO Sundar Pichai.
Microsoft CEO cuts 10,000 jobs, CEO said, As they saw customers accelerate their digital spending during the pandemic, they are now seeing them optimize their digital spending to do more with less. Microsoft CEO also sees organizations in every industry and geography exercise caution as some parts of the world are in a recession and other parts are anticipating one,” says Microsoft Chairman and CEO Satya Nadella.
Spotify’s CEO said, like many other leaders, they hoped to sustain the strong tailwinds from the pandemic. They believed that their broad global business and lower risk of the impact of a slowdown in ads would insulate them. In hindsight, they were too ambitious in investing ahead of our revenue growth,” says Daniel Ek, Spotify’s CEO.
