- Big companies are laying off workers because they want to focus more on artificial intelligence (AI) instead of other technologies.
- There were a lot of people losing their jobs in 2022 and 2023, but now companies are getting rid of things that are not very important.
- Google, Amazon, and Microsoft are big tech companies changing their business for AI, and other companies are also reducing jobs.
The tech industry is going through big changes in how they hire people and what they focus on. More companies are focusing on artificial intelligence. Starting in 2024, many people have already lost their jobs in the industry. This is making people wonder what will happen in the future.
Last year, Meta called it the “year of efficiency” and tech companies laid off workers. During the pandemic, companies had to deal with the results of growing quickly when many people started working from home and using the internet more. Now, experts think that there may be fewer big job cuts in the future.
Wedbush expert Dan Ives says most of the big job cuts are finished. Instead, businesses are changing their focus and putting more effort into using AI. They are also taking another look at projects that are not important to their overall strategy. So, everyone is paying attention to big companies like Microsoft, Meta, Google, and Amazon as they get ready to share their financial results, with a focus on AI.
In 2023, the tech industry had 260,000 job losses, according to data from layoffs. fyi, a California website that tracks industry layoffs. It’s only been four weeks since 2024 started, but 24,584 people have already lost their jobs in 93 companies. The big companies in Silicon Valley are on the list, except for Apple, which hasn’t been hurt much by the pandemic.
Big technology companies are making changes to their plans
Google, a top company in technology, has made big changes to focus on different things. Sundar Pichai, who is the boss of Google, told his workers on January 18th that some people might lose their jobs because the company is changing its main goals, especially focusing on AI.
Pichai talked about the company’s big goals and the need to spend money on important things. He said, “We have to make hard decisions to have enough money for these investments. ” After this, Google started laying off people from different parts of the company, including ad sales, search, shopping, maps, policy, core engineering, and YouTube. However, these cuts are not as bad as when Google cut 12,000 jobs after Christmas last year.
Amazon, a big tech company, is still working to make job cuts they said they would make last year. The recent layoffs have affected the company’s entertainment and streaming division. This shows that the company is trying to change and focus on different things.
After buying Activision Blizzard, Microsoft said it will lay off about 2,000 workers from its gaming division. This move shows how hard it is to combine a big new purchase with keeping the company’s main goals in line.
Impact on many industries
In addition to big Silicon Valley companies, other tech companies like eBay, Salesforce, Duolingo, and new businesses are also laying off employees. New businesses that are having a hard time may find it difficult to keep their employees when interest rates are high and they can’t get loans easily.
Investors are carefully watching these changes and liking how well tech companies are managing their money. Dan Ives from Wedbush says that investors want to see careful spending decisions, which usually make them happy.
Layoffsfyi thinks that around 20 percent of job cuts are because of AI and changes in how companies are organized. This means that companies are laying off some people because they are using more artificial intelligence in their work. They are doing this to make their operations more efficient and to put more money into researching and developing AI.
Warning: This is not advice on buying or selling stocks.