More Than 100,000 Jobs Have Been Laid Off by Giant Companies but Why? — Reasoning.
More are ACCEPTED.
My wishes are with people who have been laid-off from their jobs.
In recent days, we have witnessed companies laying off people from their jobs like mashed tomatoes. Did someone give them the official reason for being laid off?
Companies like Amazon have laid off 10,000. Meta — parent company of Facebook — laid off 11,000. Twitter laid off almost 3500 people (50% of the workforce). Twitter is an exceptional case.
Alphabet — parent company of Google — is also laying a few jobs from 12 to 14000 jobs. Netflix, Coinbase, and dozens of others companies are also laying off.
But WHY?
Most layoffs are from giant Tech companies. Does that raise the question, “are Tech industries dying?” Companies have given the following few reasons for their layoff:
War
Everyone is affected by Russia and Ukraine, and even Tech industries have been affected by the War, which has made giant Tech companies lay off people.
Covid
Covid is showing its colors after a long time, and this is true. At that moment, businesses were affected, and even now they are affected more than any previous time.
Covid is gone, but the recession and covid symptoms that people are seeing now are also not good.
Competition
Companies have also said that they are seeing high competition in their fields, which is causing their revenue to drop, one of the reasons companies are laying off jobs.
Miscalculation
Companies like Meta have said that they miscalculated that they would be seeing growth in upcoming years, which they watched in covid times. The calculation was off-base; they are not able to see that same development and are laying off jobs.
My reasons
Miscalculation (98%)
My miscalculation is different from their miscalculation. All the companies which are seeing layoffs are mostly Tech industries.
Companies like Amazon were going up in covid because people were buying everything from Amazon, which was making more revenue than ever before.
Netflix, Facebook, and all the companies that are laying off are digital companies. They have apps, software, and services that people used more than ever before during covid.
But they miscalculated it and expected revenue growth in the future based on particular circumstances. It did not work, and therefore they are laying people off.
Twitter is an exceptional case, and Elon knew from the start that Twitter was wasting money on its staff, because a small company like Twitter doesn’t need so many people to run it.
Political instability
- Political instability is also one of the reasons which is affecting in different ways: the War going on, the resulting political disturbance, and recession. Ties b/w countries are worst than ever.
- People are spending less money: Due to depression, covid, War, etc, people are buying less. They avoid tech which wastes money and time and increases depression.
- Supply Chain: Covid, War, and political instability have caused damage to the supply chains of all companies.
Conclusion
Companies with physical products were doing good before covid; same for Tech companies. But when Covid happened, Tech companies skyrocketed faster than ever before.
Companies with physical products and services took a huge hit. Eventually, both Tech and Physical product companies are currently facing the side effects of covid and, over time, going-back to normal.
