Tech Industry: The threat of layoffs is looming in the tech industry. Only one month has passed since the year 2024 started and about 32 thousand people have lost their jobs. Right now there are no signs of the retrenchment process slowing down. It is feared that this year is going to be very difficult for tech professionals.
The round of cuts continued in January also
According to the report of Layoffs.fyi, a startup that has been tracking job cuts in the industry since the Corona epidemic, this year is going to be full of troubles. On Monday itself, Snap Inc. announced the layoff of 10 percent of its employees. This decision will affect 540 employees. Earlier, Okta Inc. had announced to eliminate the jobs of 400 employees (about 7 percent) to reduce costs. Big tech companies like Amazon, Salesforce and Meta Platforms are also involved in the race for layoffs.
Reduction in hiring during Corona epidemic
Roger Lee, founder of Layoffs.FYI, wrote in an email that this year also there are no signs of improvement in the job situation. Companies are cutting down on hiring done during the Corona pandemic. There is economic slowdown in the tech industry. There doesn’t seem to be any improvement in this at present. He told that the level of retrenchment this year will be small but it will continue. There were massive layoffs last year.
Jobs are being lost, AI jobs are on the rise
Roger Lee said that there are economic reasons behind the job cuts. However, the race for Artificial Intelligence (AI) is going on in many companies. Because of this, their focus is on connecting people with knowledge of AI. Due to this, old people are losing their jobs. According to an analysis by CompTIA, job postings for AI skills jobs increased by 2,000 between December and January. In the last two months, 17479 AI jobs have come in the market. In such a situation, it can be understood that on one hand jobs are being lost and on the other hand AI jobs are increasing.
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