The global tech industry has seen over 55,000 layoffs since the start of 2023, with 12,000 coming from Google and 10,000 from Microsoft alone. The tech sector is among the first to react to economic downturns due to its high level of digitalization. According to layoff.ai, 25,436 tech employees have been laid off by 101 tech companies in just 17 days of the new year. The majority of these layoffs occurred in the US, with 22,400 workers affected. This number is likely to be higher, as it only includes reported layoffs.
In 2022, 154,336 tech workers were laid off. Companies such as Twitter, Meta, Amazon, Salesforce, Google and Microsoft have already made layoffs, and more are expected as the industry continues to undergo the fourth industrial revolution (4IR) or Industry 4.0 with the increasing adoption of AI and robotics. Reasons for layoffs include economic uncertainty, decreased e-commerce activity, pressure from investors for profitability, declining revenue, and the maturity of the industry. It is important for individuals and companies in the tech sector to be prepared for future challenges and consider adopting AI and robotics to improve their business processes and operations.
For individuals, it is important to invest in personal development by reading books and obtaining new certifications related to emerging technologies in order to stay relevant in the job market. Many people neglect to sharpen their skills and capabilities in their leisure time, making them vulnerable to being replaced by younger, more qualified candidates. It is important to remember that learning is a lifelong process and what was learned in university will eventually become irrelevant in the job market. It is not the position held in a previous employer that matters, but rather what an individual can contribute to a company if they were to be rehired. It is essential to continuously learn, unlearn, and acquire new skills and competencies to stay competitive in any industry.
The shift towards a project-based economy means that individuals with strong project management skills are in high demand. These individuals have the ability to take on multiple roles and deliver project results effectively. They demonstrate flexibility by being able to lead one project and be a team member on another. They possess a broad range of skills and are willing to accept projects, even those outside their comfort zone. These traits are crucial for success in the new normal workplace.
As the world progresses, it is becoming increasingly clear that businesses will require fewer employees. This applies to both private and public sectors, as well as big corporations and small businesses. The adoption of AI and robotics is a key indicator of a company’s relevance and future success. Additionally, companies that have a workforce that can work remotely, on premise and hybrid and be productive in a digital or “anywhere” workspace will have a competitive advantage.
E-SPIN Group has been in the business of supplying, consulting, managing, training and maintaining enterprise ICT solutions for multinational corporations and government agencies in the region since 2005. If you have any requirements or project inquiries, please don’t hesitate to contact E-SPIN. You may also be interested in other posts.
