Does a carnage of big tech jobs hit you?

Meta would have liked this video if it had been released in 2021. If the young employee had flaunted the perks of his role, he would have been perfectly in line with the company’s enormous hiring appetite when he hired an additional 27,000 in his first two years of the pandemic. prize.

Instead, it landed with a bang in October as the company belatedly began to realize things had changed south. 11,000 jobs cut in Novemberheralding cuts for all other companies to come.

And while these job losses were brutal for employees who lost their income, even the hiring Mehta made earlier in the year was little more than a patch. wall street journal It reportedly hired about 15,000 staff.

That’s the first lesson from the video. Tech companies skated far more than most sectors of the economy during the pandemic. The exit was inevitable and embarrassing for a company that prided itself on building a future for its investors.

This mood is typical measuring kalpa Tobias Lutke, boss of online store platform Shopify, thought lockdowns would cause a permanent surge in digital sales.

To provide a candid view of the situation, a senior Australian tech industry executive I spoke to anonymously said: [to hire at a great pace during the pandemic] I had bad intentions (I know I’m going to fire some of these people), but I gave very little thought to where the new normal lay. ”

Facebook owner Meta was one of the first tech giants to cut jobs last Photo/Tony Averer

In other words, as the world suddenly shifted to working from home and governments flooded the economy with stimulus packages, demand for online products and services was skyrocketing. Technology is an inherently optimistic industry, and few people were willing to answer that question.

The second lesson from the fascinating life of the video’s protagonist is that tech companies have gone all out in perks and pay, hiring so many staff so quickly and sometimes asking for mundane jobs. . They’ve spawned free snack bars, wellness budgets, acres of rooftop gardens, rock-climbing walls, and even paid packets that big money suggests.

The rest of the economy was not. Fair Work Commission data Private sector corporate agreements tend to set wages in unionized workplaces, with average annual wage increases of less than 3% in the September quarter. That’s less than half the rate of inflation. 6.9% in October.


Containment of wages by employees should mean less reason for bosses to cut headcount.

None of this asks for charity for the tech industry. For example, if Google’s profit last quarter was down 27% year-over-year, but was still $13.9 billion, that would be silly. The general trend in favor of the tech industry is as persistent as ever.

But concerns about the rest of the economy need to be reconciled. Unemployment happens there too. A sharp housing recession and rising energy prices will drive it. Fortunately, the unemployment rate is nearing historic lows, which is a big blow for those who have lost their jobs.

But the toughest cuts, with tens of thousands of workers laid off in one fell swoop? Hopefully, it should remain a preserve for the tech scene.

Our Business Briefing Newsletter delivers headlines, exclusives and expert opinion. Sign up to pick up weekday mornings.

Does a carnage of big tech jobs hit you?

Source link Does a carnage of big tech jobs hit you?

Back to top button