An interesting phenomenon is happening, and that is that after years of excessive hiring, many big tech companies are now beginning mass layoffs. Seagate it was the last in announce layoffsbut before they are announced Meta, Google and including Intel. These are not the only cases, but what is happening at the moment at the big technology companies?
The reality is that each case has its particularities. Many come from absurd investments in questioned or disappeared technologies. Others are reeling from the huge drop in desktop and laptop sales. There is even a case where a change in management could lead to an unprecedented mass layoff.
Harmful investments, waste and other problems
Google or Alphabet is one of the most notable cases of poor foresight or foolish betting. The shutdown of Google Stadia leaves the company in a more than complicated position. Hundreds of millions invested in a project that ended up failing miserably and could lead to many layoffs. Although Alphabet did not provide data, its CEO, Sundar Pichaialready dropped one series of layoffs, more data.
Meta is another of those announced layoffs. Your bet on metaverse was only used for mockery and mockery after presenting your project. Avatars that appeared to be taken from Nintendo Switch’s Animal Crossing, have spawned numerous memes. The company has invested a lot of money in this project and it is going terribly wrong, which would generate the dismissal of 10% of workers the company.
Microsoft He didn’t go into absurd gardens, but the truth is that the drop in computer sales is affecting them. In addition, Windows 11 hit a bump important and the adoption of this operating system is low. The company announced the dismissal of about 1000 workersi.e. 1% of the workforce.
Intel is the one who suffers the most from the blows of the Drop in PC sales. Additionally, it recently ended up getting rid of its memory and SSD division. Because of all this, from the company, they raise a reduction of its personnel mass by up to 20%.
Seagate presented his accounts and these are really horrible. The company is being dragged down by falling new equipment sales on two fronts. First, decline in SSD sales and also, the drop in prices, at the same time as the decline in hard drive sales. All this added led them to announce the dismissal of 3,000 workersi.e. approximately 8% of the workforce.
Amazon is also in a major round of layoffs. One of the biggest online stores it has many open fronts and some are not giving results. The company once owned by Jeff Bezos, raised the dismissal of approximately 10,000 workers.
Elon Musk would enter Twitter by swiping
The truth is that since Elon Musk announced its intention to buy twitter, We weren’t bored. Just yesterday, he walked into Twitter headquarters with a sink, something that went around the world. More unnoticed has passed its intention of brutal restructuring.
Twitter currently has approximately 7,500 employees and Musk plans to lay off about 5,000 employees, What is the 75% of its workforce. Well, at least that was the idea I had, but it looks like they shut it down. The reason for this slowdown would be that all these layoffs could cost several billion in layoffs. Initially, Twitter raised lay off 25% of the workforce at a cost of $800 millionso laying off 75% could cost around $2.4 billion.
Entering Twitter’s headquarters – let him in! https://t.co/D68z4K2wq7
October 26, 2022 • 8:45 p.m.
Musk also lifted implement the “stack rating” system. It is an evaluation mechanism and the workers write them down and place them in a filing. This system was designed by General Motos in the 1980s and was a monumental failure. This mechanism proposes to reward the 20% of the best workers, to leave 70% of the workers at the same level and to lay off 10% of the workers who would be at the bottom of the list.
It looks like they convinced Musk not to come in with his flamethrower from The Boring Company. Everything points to massive layoffs on Twitter, but it won’t be 75% of the first staff, it’s possible that he will end up with a series of layoffs of 25%.
