Only this week, Alphabet – Google’s controller – Microsoft and Vox Media will announce their layoffs that they will affect more than 22 thousand employees. The movements accompany the cuts implemented by Amazon and Salesforce at the beginning of this year.
The big techs, which they aggressively hired during the pandemic, are now forced to restructure their operations. And the implementation of new technologies, mainly those that contain artificial intelligence, can make this reduction in the number of employees irreversible.
According to the CEO of StartSe, Junior Borneli, these new technologies have the potential to occupy the space left by these cuts.
“We are selling great new technologies that will appear and become popular. This is beginning to create a movement to replace job positions with activities that will be done by algorithms”, says the specialist.
“These algorithms trace a lot of productivity for some areas and some vague ones of employment can be eliminated so that the company becomes more efficient from a professional point of view, without taking into account the social factor of employment. This movement accelerates even more with the popularization of artificial intelligence”, avalia Borneli.
A survey of Ycharts prepared by Snaq shows the size of the loss of market value of big techs.
Between January 3, 2022 and January 3, 2023, Amazon raised from US$ 1.7 trilhão to US$ 872 billion (-49%), while Meta was from US$ 928 billion to US$ 331 billion (- 64%).
In the same period, Alfabet devalued from US$ 1.9 trilhão to US$ 1.1 trilhão (-39%); to Microsoft, from US$ 2.5 trilhões to US$ 1.7 trilhão (-29%). A big tech with the highest market value, Apple, went from US$ 2.9 trilhões to US$ 1.9 trilhão (-33%).
Together, the five companies will lose US$ 3.9 trillion in market value in the period.
These adjustments to demands and expectations reflect what has been euphoria throughout the pandemic, highlights Borneli.
“Meta has a crise installed, loses revenue, users, billing. Amazon is experiencing an adjustment due to the high demand for e-commerce that has occurred throughout the pandemic and is now returning to the normal paths. Microsoft and Google are making adjustments to recover profitability ”, she says.
“There are different problems for each company, more or less, they all have the same challenge: to become profitable again as never before. Global economic pressures make this challenge more difficult and the losers are the more direct adjustments they find to overcome it”.
Among the companies listed above, the one that was most challenged was Amazon, with 18,150 cuts already consolidated. Then we see Google (12,000), Meta (11,000) and Microsoft (10,000). Or highlight it with Apple, which, at the moment, has not announced reductions in the number of employees.
The company founded by Steve Jobs opted to reduce the salary of two more highly paid executives to readjust the accounts. Or CEO Tim Cook, for example, will stop earning close to $50 million this year.
Junior Borneli believes that this move to Apple can serve as an example for other big techs and break the mystification raised around two large billionaires who command the companies.
“Companies understand that the greatest asset they have is the talented people they manage to build over time. If they start to lose that time, they become less competitive. These companies say what will happen in the market, so this move by Apple was interesting because it could influence other companies.”
Source: CNN Espanol