Following Twitter and Meta last week, Amazon is the most recent technology business to lay off staff. What is causing this Big Tech downturn? Why is Amazon’s decision to lay off workers important?
According to a Monday New York Times report, Amazon intends to fire up to 10,000 workers worldwide in “business and technology.” This comes after a wave of layoffs and recruiting freezes in the tech industry, most notably at Meta, which fired over 11,000 workers last week.
What is causing this Big Tech downturn?
The global recovery from the Covid-19 pandemic is the primary cause of the decline in demand. The lockdowns brought on by the pandemic pushed individuals indoors, causing them to make more online purchases, spend more time on social media, watch more streaming material, and play more multiplayer games. This first became apparent in the amount of tech companies that were employed to meet the rising demand during the past few years’ boom. Engagement across platforms is declining, and so is revenue, as people go back to work and rediscover the outdoors. Less personnel are therefore required to manage these platforms.
Businesses who had assumed that the pandemic spike would be sustained by altered consumer behavior are now realizing that this is not the case. Even worse, there are signs of an impending global recession, which are already affecting demand for non-essential goods in several markets. Many times, a purchase that can be delayed is postponed.
But why does Amazon’s decision to lay off workers matter? Amazon has been one of the most reliable employers in technology for workers. The layoffs, which Amazon has not yet formally disclosed, will be the biggest ever for the business. Engagement across platforms is declining, and so is revenue, as people go back to work and rediscover the outdoors. Less personnel are therefore required to manage these platforms.
Businesses who had assumed that the pandemic spike would be sustained by altered consumer behavior are now realizing that this is not the case. Even worse, there are signs of an impending global recession, which are already affecting demand for non-essential goods in several markets. Many times, a purchase that can be delayed is postponed.
But why does Amazon’s decision to lay off workers matter? Amazon has been one of the most reliable employers in technology for workers. The layoffs, which Amazon has not yet formally disclosed, will be the biggest ever for the business.
Amazon cutting jobs is a sign that consumer confidence is low, particularly in the weeks leading up to the holiday shopping season, which is often the best time of the year for e-commerce.
As global demand for Alexa devices begins to decline, Amazon is anticipated to lay off employees in the devices vertical. Anyone else who has disclosed layoffs?
The parent company of Facebook, Meta, has made the most dramatic cuts. Meta appears to be suffering from declining engagement on its platforms as well as ad monitoring rules that have reduced the efficacy of campaigns on those platforms. Last week, Meta fired nearly 11,000 employees. However, Twitter has undergone the most noticeable trimming since Elon Musk took control of the microblogging service.