This year, technology companies have doubled approximately 34 thousand jobs, reorganizing their employees to take advantage of new fields such as generative artificial intelligence, to drive future growth.
Microsoft, Snap, eBay, and PayPal have cut thousands of jobs since the beginning of January, according to Layoffs.fyi.
Around 138 technology companies have laid off employees this year. The losses were minimal compared to the beginning of 2023 when major technology companies decided to eliminate jobs after a period of excessive investment during the pandemic, including companies like Facebook, Amazon, and Microsoft.
According to information from Layoffs.fyi, approximately 263,000 jobs have been cut in the technology sector during 2023.
The recent wave of employee layoffs indicates that companies are reallocating their resources for investment in new areas, such as generative artificial intelligence, as well as showing shareholders a continued focus on cost control.
Companies are reassessing priority areas for investment, reducing presence in costly and non-core departments, such as Amazon’s live streaming platform Twitch, which cut hundreds of jobs this year.
Companies like Amazon, Microsoft, Meta, Alphabet, and Spotify have announced their plans to achieve balance this year.
Costs were widely reduced last year due to the realization that the shift to digital lifestyles did not end with the pandemic, as technology companies implemented a significant wave of hiring at that time.
Anyone working in the technology or gaming industry currently feels some level of concern due to the high potential for job layoffs, whether this concern is for themselves or someone they know.
Meta has cut over 20 thousand jobs since the end of 2022, confirming this month that adding new employees for this year will be limited even with significant investments towards smart technology.
Meanwhile, enterprise software company SAP has revealed a major restructuring in January, where approximately 8,000 jobs may be cut, with the company focusing on developing artificial intelligence and retraining its employees as much as possible.
