Layoffs in tech sector nearing 900,000 mark since 2020
What's the story
The tech industry is witnessing a major upheaval with more than 92,000 employees losing their jobs this year alone. This brings the total number of layoffs since 2020 to nearly 900,000, according to Layoffs.fyi data cited by CNBC. The trend has been fueled by companies such as Meta and Microsoft announcing massive job cuts while investing heavily in artificial intelligence (AI) technologies.
Industry shift
Meta and Microsoft's massive job cuts
Meta and Microsoft recently announced plans to cut over 20,000 jobs between them. The move comes as part of a larger trend in the tech industry where companies are investing billions into AI while simultaneously cutting down on their workforce costs. Meta plans to reduce its headcount by 10%, or nearly 8,000 jobs, while also canceling plans to fill around 6,000 open positions.
Workforce changes
Voluntary buyouts and layoffs at other companies
Along with Meta, Microsoft is also making major changes to its workforce. The company has announced a voluntary buyouts for eligible US employees. This comes as part of the tech giant's larger strategy to invest in AI technologies while streamlining its workforce. Other companies like Nike and Snap have also announced layoffs in line with this trend, further highlighting the shift within the industry.
Job market
AI's impact on hiring trends
The rise of AI has also changed hiring trends in the tech industry. While entry-level and general IT jobs are slowing down, there's a growing demand for AI engineers and specialized roles. Salaries have remained flat across most sectors except for high-demand categories like AI. This shift indicates a fundamental change in how work is organized and executed across industries, according to Anthony Tuggle, an executive coach and former AI professional.