There’s no doubt that the recent spate of layoffs across the tech industry has been a major setback for many. But, despite all the headlines that talk about mass reductions here and there, or constant warnings that AI will take away jobs, the truth is much more complicated.
The main reason for a rise in layoffs is that many technology companies over-hired during the initial pandemic boom. With so many people working remotely, shopping online, streaming movies and taking classes online, demand was high and hiring surged. But now, with the end of the pandemic in sight, many companies are correcting that imbalance by reducing staff numbers and recalibrating their business strategies.
This year, Intel has reportedly laid off 13% of its workforce; Salesforce has announced plans to cut 21,000 positions; Google is reportedly trimming around 200 roles at the end of this month; and Meta, the company behind the popular Meta VR platform, is cutting 600 workers from its Meta Superintelligence Labs team. These cuts are in addition to a number of other companies that have slashed staffing and made similar adjustments as the economy stalls and they seek to reposition themselves for the next stage of the digital revolution.
But, despite the fact that the number of tech jobs has fallen significantly this year, it is important to remember that most of those laid off workers won’t return to the industry and many will bring their skills to non-tech sectors that have been clamoring for years to close the gap between their needs for digital evolution and the talent they can attract. As a result, the tech layoffs of 2024 might actually be the biggest opportunity yet for non-tech businesses to get their hands on some of the most sought-after talent in the world.
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