There have been a number of layoffs in large companies lately, especially in the tech sector. Organizations like Meta, Twitter, and Amazon have shed considerable numbers from their workforce. This has presented many challenges to those losing jobs or those onboarding at the recently-trimmed companies. We will talk about some of the reasons behind these shocking moves, what it means for workers, and how staffing firms fit into the equation.
Many companies in the tech industry saw strong growth throughout the pandemic, as the world required swift and effective digital alternatives to many facets of life. With such lofty demands, lots of companies had to massively scale their workforce and investment. This led to uncharted territories and novel approaches to hiring and enterprising. This year’s feathering out of Covid-19 decreased demand, and many national and global events led to poor overall economic conditions. Mixing in the ever-inventive nature of the tech industry, company leaders chose to protect or grow certain enterprises of the organizations. This pushed such companies to lay off a good deal of their headcount, and it has been intensified recently by the already executed or planned layoffs of Meta, Twitter, and Amazon.
Meta, which owns the social platform Facebook, was one of the latest tech giants to announce layoffs. With over 10,000 job cuts, Meta has reduced a significant portion of the team, citing lack of employment foresight and enterprise shifts toward the metaverse. Mark Zuckerberg, CEO of Meta, explained that the cuts are not the result of poor performance by laid off staff, but rather the inability to retain the talented workers among slacking demand in Facebook and resistance in its metaverse endeavors. He noted that his choice to enact such a sweep of headcount was in hopes it would be the last one of its kind for the company.
More than 10,000 workers are now looking for work, adding a lot to the tech hiring pool. The job cuts were neither performance- nor conduct-related; Meta has attempted to support those laid off by offering severance and help job-seeking. While a more amicable example of recent layoffs, it is still very unfortunate for the many workers who felt shocked by the news. Confidence in big tech has also begun to sway, as effects of the pandemic fully set in.
Tesla CEO Elon Musk has recently bought Twitter, who took the social media company private. Since his first bid to acquire Twitter months back, he has been explaining his goals for the social network – improving productivity, shifting culture, and generating profit. He also asserted bots were a major issue of the platform, trying at one point to duck the purchase citing this concern. After taking control, Musk made a number of moves to clear house and restructure the Twitter workforce, leading to thousands of layoffs and firings. Amid aggressive policy change and culture shifts, the company also saw droves of resignations.
This development pushed thousands of skilled workers back into the hiring pool. Changes to protocol, work conditions, and the public representation of staff by Musk left many team members angered, unsupported, and abandoned by the company. This means that many of the affected workers are urgently looking for new roles and may likely be scrutinizing the culture of their next job very seriously.
Amazon’s prominent layoffs compare better to Meta than to Twitter. The Covid-19 pandemic strongly catalyzed the eCommerce industry, and Amazon has the lion’s share of that market. It saw lots of growth in its traditional eCommerce role, product development, and web services over the pandemic. As demand for these products and services grew, so too did the workforces at Amazon that managed them. These extra personnel were critical to dealing with the high demand of the pandemic. When eCommerce slowed as the world normalized, the lower revenue was not able to support the large workforce.
This led to a decision cutting 10,000 workers from the organization, mostly in the devices and human resources teams. The company believes that certain areas of the business focus, like their Alexa devices, should be divested amid unprofitability. The layoffs were also motivated, as with Meta, by the huge headcounts amassed as a result of the pandemic. They hope that these measures can provide health for their business as economic worries remain strong.
What This Means for Workers
Many of the layoffs in tech come somewhat unexpected for the tens of thousands now out of a job. Especially given the timing with holidays and a worsening economy, many of those laid off are in dire need of another role. And for those on a work visa, there is little time to secure another position after losing your job.
While companies like Facebook and Amazon are doing widespread hiring freezes, many tech companies are still hiring for either other focuses or replacing resigned team members. This mean that many workers will be starting at companies that have just experienced significant layoffs, which may come with a shift in culture, performance, or goals. These may take time to get used to or serve as non-negotiable factors that allow you to find a role more suited for you.
How Staffing Firms Help Laid Off Workers and Businesses Trying to Avoid Layoffs
Staffing firms can help workers find positions very quickly, due to their expansive networks. They also make contract work more accessible and simple for job seekers, meaning that those laid off from full-time positions can seek a series of contract roles while looking for a permanent role. If you’ve lost your job, contact a staffing firm and explain your situation. Chances are, a recruiter will be able to place you into another role that meets your needs.
These kinds of layoffs also speak to the importance of contract work in business. Contracting the larger workforce needed for special projects, intense demand, and short-term solutions can decrease the number of layoffs from permanent roles. They give companies more opportunities to assess employment needs, build a network of consultants to fill permanent roles, and assist permanent hires in tackling much needed operations.
blueStone Staffing is a Certified Woman-Owned IT Staffing Company. We were founded in 2002. One of North America’s premier staffing firms, we assist mid-tier to Fortune 500 clients. We find talented candidates that can help complete your project on time and within budget. Our company is transforming the staffing industry. blueStone has excelled over the last 19 years, becoming the vendor of choice for many of the Fortune 1000 companies located in the United States. We hope to be the consultant that you trust your professional IT project needs to! We will surround you with meaningful attention. Our team creates long-term relationships with our clients, candidates, and associates. In brief, we help great people execute their vision.
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