The reckoning in the US tech sector continues

Recently, the US "TechCrunch" website reported that as of now, the US technology industry has lost more than 240,000 jobs in 2023, which is 50% higher than last year, and it is still growing, and the liquidation of the technology industry continues. Earlier this year, tech giants like Amazon, Microsoft, Yahoo, Meta, and Zoom made massive layoffs, and at the same time, a number of startups announced layoffs. While the trend in the tech industry slowed over the summer and fall, layoffs returned at the end of the year. A number of well-known US technology companies have begun a new wave of layoffs.

According to the San Francisco Chronicle, the latest wave of layoffs in the US technology industry comes from many well-known companies, including Google, Amazon, Snap, and real estate information platform Zillow. Google recently cut a handful of jobs in its users and products division, and Waymo, the self-driving car company owned by its parent company Alphabet, recently made its third wave of layoffs this year. E-commerce leader Amazon also announced layoffs in its music division, a move that has affected more than 27,000 people worldwide this year. Snap, the company that runs the social platform Snapchat, also announced it was laying off nearly 20 product managers, following a string of high-level departures over the past three months. Zillow also reported layoffs after reporting third-quarter earnings.

In addition, Nextdoor, the largest neighborhood social platform in the United States, said in its third-quarter earnings report that it plans to cut 25 percent of its workforce as part of a cost-saving plan. Former employees of Bandcamp, a music e-commerce platform, said on social media that "about half of the employees were laid off" after the company was acquired by music rights company Songtradr.

Us business magazine Fast Company website said that while the number of layoffs has not reached the peak of earlier this year, the fourth quarter of 2023 has been grim for some well-known technology companies. With U.S. interest rates at a 22-year high, businesses will continue to make cost-cutting decisions, said Abby Ritz of the Bay Area Council Economic Institute. "Many companies are making decisions around high interest rates, which will slow economic growth and reduce the need for businesses to hire more workers or retain workers," she said. Fox News quoted analysts as saying that this round of layoffs may also be related to the uncertain economic outlook. The European "Energy Portal" website reported on the 11th that the layoffs of US technology giants highlight the change in the landscape of the San Francisco Bay Area technology industry, Google is the main pillar of Silicon Valley, and its layoffs show that even industry giants are not immune to the impact of economic downward pressure.

The Indian Express analyzed on the 11th that most of the US technology companies that announced layoffs gave some vague reasons, and the underlying reason may be a strategic adjustment - in the case of Google, it is likely to be a reallocation of resources for more critical areas for future growth. Streamlining operations is another important reason, as evidenced by layoffs of Snap's product management team and the departure of some senior executives. This is likely to be based on a rapidly changing market or even to meet the need for internal restructuring. Another decisive factor may be current economic and market conditions, such as technological advances, changes in consumer preferences, etc. The fact that these layoffs will affect employees in multiple regions of the world speaks to a global reassessment of the workforce needs of big tech companies.

In addition, the positions being eliminated also seem to indicate that these companies are undergoing a strategic shift to reduce their emphasis on certain service areas and focus more on core businesses. This latest trend reflects a broader reform or restructuring taking place across the tech industry. Experts also see it as a potential shift in the way the tech industry grows and manages resources.

As customers continue to demand innovative products and services, technology companies are under pressure to remain agile and responsive, according to the European Energy Portal. This often leads to a need to reassess employee needs and streamline operations to remain competitive in a changing market.

According to Wired, the past year has brought a reckoning to a once "unsinkable" industry. Tech job seekers face a tough market today, competing for fewer positions in a field that once offered high salaries and generous perks. Pollack, chief economist at ZipRecruiter, an online job site, said the tech job market "hasn't shown any signs of getting better yet."