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The Amazon Prime Video logo is displayed as the UNLV “Star of Nevada” marching band performs at the Amazon Prime Video booth during TwitchCon 2023 Las Vegas at the Las Vegas Convention Center in Las Vegas, October 20, 2023. Is displayed. Gabe Ginsberg — Getty Images
A new year in the technology industry has begun, with several companies announcing significant layoffs. This is reminiscent of his start in 2023, ahead of the sharpest industry exit in more than a decade.
Amazon.com is cutting hundreds of jobs across its content production divisions, including Prime Video and live streaming site Twitch. Alphabet Inc.’s Google is also cutting hundreds of positions in its hardware and assistant divisions. Unity Software Inc. develops the technology that powers popular mobile games, including: Pokemon GOannounced that it will reduce its workforce by 25%, cutting approximately 1,800 jobs.
Although smaller than the layoffs by Meta Platforms and Salesforce a year ago, the move signals that the tech industry has yet to return to the rapid growth seen for much of the past decade. ing. Rising interest rates have caused many companies to pivot to focus on profits rather than revenue growth.
Bloomberg Intelligence analyst Poonam Goyal said Amazon’s job cuts are “likely just a move to further streamline costs, improve efficiency and increase profits.” For Google, the move is an extension of a reorganization that began last year and will give employees the opportunity to apply for other open positions within the company, a spokesperson said.
Anxiety about AI in Big Tech
Worker anxiety is particularly acute in creative jobs, which could be affected by the proliferation of generative artificial intelligence, which could reduce the amount of labor required to write or produce videos. Duolingo Inc., which develops the widely used mobile language learning app, has cut its number of contractors such as translators by 10%, in part due to its expanded use of AI.
After a sleepy 2023 for dealmakers, some on Wall Street are predicting a wave of mergers in 2024. Historically, large acquisitions have resulted in a surplus of employees. Hewlett Packard Enterprise CEO Antonio Neri said Wednesday in an interview with Bloomberg Television after announcing a $14 billion merger with Juniper Networks that automation will help reduce Juniper’s costs. He said it could be reduced.
Outlook for the technical job market in 2024
Despite the bleak signs, the data suggests the job market is stabilizing. The number of technology layoffs peaked in the first quarter of 2023 and has steadily declined since then, according to Layoffs.fyi, which tracks layoffs across the industry. The website calculates that 1,186 technology companies cut a total of more than 262,600 jobs last year. According to the website, 18 tech companies have laid off 2,945 employees since January 1.
“I would say the situation is coming to an end. Companies are starting to prepare and think the worst is behind us,” said Bart Bean, CEO of Insight Global, a staffing firm.
Even if layoffs stabilize, many employers are still focused on profits. Bean added that companies are still cautious in hiring and it is less common for job seekers to receive multiple offers.
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