Why Are Tech Giants Firing Employees?
Why Are Tech Giants Firing Employees?
Tech Giants Firing Employees. Depending on the needs of the business and your financial health, you may need to lay off employees. This is usually due to a change in company structure or overall company strategies rather than employee performance. However, it can be helpful to understand why an employer may terminate employees so that you are better ready for this eventuality.
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What is a dismissal?
A layoff is an action your employer can take to end your employment with the company. It is usually not a performance issue; Instead, there are other reasons an employer may decide to cut a job or remove an employee from the organization. An employer can choose to lay off an individual or a group of workers, which can be temporary or permanent.
causes of layoffs
- Organizational change Business closure
- cost-cutting techniques
- Mergers\Acquisitions
- reduction in operations
- Options for outsourcing
- losing money
- Seasonality
- growth in technological progress
- undertaking cancellation
- revisions to the position’s requirements
- Offshoring
Tech Giants Firing Employees
After acquiring Elon Musk, Twitter laid off nearly half of its workforce as part of cost-cutting measures. Interestingly, the company had to ask some terminated employees to return after realizing they had been aloof by mistake or were too critical of specific operations. But Twitter’s layoffs are part of a larger trend in the tech industry. Meta, the parent company of Facebook, has announced that it will lay off nearly 11,000 employees. As the global economy heads into recession, inflation spirals out of control, and central banks around the world raise interest rates, other tech companies are probable to follow suit. Here, we’ve rounded up some of the tech industry’s most significant layoffs and hiring freezes.
Musk’s acquisition began with the firing of Twitter CEO Parag Agrawal, CFO Ned Segal, and policy and legal chief Vijaya Gadde immediately after the purchase closed. Twitter then laid off almost half of its 7,500 employees on November 4. Employees were first notified of the layoffs by email the day before. In addition to raising questions about the company’s ability to deal with misinformation ahead of the US midterm elections, the releases have prompted a class action lawsuit by former company employees.
In India, the email arrived at 4 a.m., and the Indian Express reported that the layoffs affected almost all of Twitter India’s marketing, communications and technical teams. An employee told the Indian Express that “the whole process is like a game of Russian roulette”. Twitter had between 250 and 300 employees in India.
Meta
According to a Reuters report, meta, Facebook’s parent company, said it would lay off 13% of its workforce, or more than 11,000 employees, in one of the biggest tech layoffs of the year. The sweeping job cuts, the first in the company’s 18-year history, come from a sluggish advertising market and skyrocketing costs. In October, the company forecasted a weak holiday quarter this year and a significant cost increase next year. That wiped out about $67 billion from Meta’s stock market, adding to the nearly $500 billion in value it had already lost this year.
Snap
Snap, the company that develops and operates Snapchat, laid off about 20% of its 6,400 employees this August. The layoffs were announced as Snap’s stock price fell more than 80% over the past year. The layoffs affect some departments more than others, with developers making applets and games and employees at social mapping Zenly (which Snap acquired in 2017).
In an email to employees, Snap’s CEO and co-founder, Evan Spiegel, wrote, “Well, to continue our work to grow earnings, we don’t need to ensure Snap’s long-term success at any cost. I deeply regret that these changes are necessary to ensure the long-term success of our company.
Microsoft
Microsoft has laid off nearly 1,000 employees, according to an Axios report citing an unnamed source. The company has eliminated jobs at many levels in teams and regions worldwide. “Like all companies, we regularly review our business priorities and make structural adjustments accordingly. We will continue to invest in our business and hire in key growth areas over the next year,” Microsoft said in a statement to Axios.
Amazon
While Amazon hasn’t announced any layoffs yet, it has frozen hiring firms at its retail business for the rest of the year. This was reported by the New York Times, citing an internal company statement. The announcement came in an email to recruiters and said the company would suspend hiring for all company positions at its branch. Amazon’s brick-and-mortar business includes its physical and online retail operations, as well as its logistics operations. More than 10,000 job openings were posted in the department before the freeze, according to the NYT.
Apple
According to a Bloomberg report, Apple is suspending hiring for many non-R&D jobs. Apple predicted that growth would slow during the holiday season. iPhone 14 Pro and Pro Max shipments are also predictable to be affected due to China’s lockdown policy to deal with new Covid-19 infections.
Bloomberg adds that the pause will not apply to teams working on future devices and long-term projects but will affect standard hardware and software engineering roles and certain other company functions.
Byju’s
According to the Financial Express, Byjus was valued at $22 billion in an October funding round in which the company raised $250 million from existing investors. This makes the Bangalore-based company one of the largest IT companies in the world. But the valuation and new cash inflow haven’t stopped Byju’s from announcing the layoff of some 2,500 employees over “layoffs and duplication”.
Conclusion
Any company that engages in commercial banking operations in various aspects for the purpose of its operations to make profits and reduce losses. You also need to take sufficient care of your employees to work effectively on the development of the business. However, in order to survive in the market, these companies need to make accurate and quick decisions. Dismissing employees or workers through layoffs or layoffs can benefit the company as both methods follow certain protocols to ensure that employees or workers are not subjected to unfair conditions.
