Companies have been conducting continuous rounds of layoffs since COVID-19. Businesses starting small start-ups to giant techs are showing the door to their workforce. We all thought that companies that we believed had never-ending deep pockets would never lay off their employees, but we were wrong.
Having a job in companies like Google or Microsoft is no longer secure; every single company is focusing on cutting its expenses under different labels like “restructuring”.
Big Tech Layoffs and Hiring Freezes
Twitter’s layoffs
Elon Musk is hated by a number of employees due to his unacceptable way of laying people off. He laid off around 50% of the employees; among these were contracted employees that weren’t even notified. How would you feel when you wake up losing access to your emails and official account? Not only that, but Elon played another round by sending a vague email in which he asked employees if they wanted to stay, and if they did, they had to click on the provided link before the deadline. The very next moment, people received emails telling them they were no longer part of the organization. It is due to this level of uncertainty that people lost trust and resigned themselves. No one knows what the CEO will do the very next moment. At times it is announced that it needs correction on a hiring spree and at times it is labeled as a mistake calling back fired employees.
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Amazon Job cuts
Amazon wished its employees a new year with an email informing them they will cut more than 18,000 employees. This number was 10,000 in November, but according to The Wall Street Journal, it rose to 17,000, and as of right now, according to CNBC, it is now at 18,000 as well. A sudden decision was made by Amazon. Although the company did mention that some teams in its hardware and service departments will be merged, it never made it clear that 18,000 employees would be let go. People used Amazon for all of their needs during the pandemic. However, when Covid bans were lifted, the situation changed; now that people can shop, Amazon suffered. CNN claims that Jason miscalculated the demand during the pandemic.
Meta Layoffs
Meta has been struggling since the rise of Tik Tok and the introduction of Metaverse. CEO Mark Zuckerberg announced plans to lay off 13% of his workforce because he couldn’t bear the thought of people not getting his content. The company failed to gauge pandemic demand like other companies. The CEO mentioned that it was his huge mistake to plan future growth based on the pandemic boom. The company was blown away when the price of Meta stocks fell due to Apple’s privacy policy changes. Suddenly, Metaverse was no longer a viable option for companies that wanted to get their content out there in a way that wasn’t just about selling ads. The privacy changes in the App Store aimed to break the monopoly of Facebook’s online search market, because of which adoption of Meta ads declined.
Microsoft Layoffs
Microsoft is laying off 10,000 employees, and it’s having a hard time getting all of them to leave.
On January 18, Microsoft’s CEO, Satya Nadella, announced significant layoffs at the company that will result in the reduction of our overall workforce by 10, 000. Thousands of employees received an email from Nadella announcing they were being let go, a move that came as a shock to many at Microsoft.”We understand this is a difficult time for you,” he wrote. “So I want to make sure you know how much we appreciate all you do daily.” People are stunned because just a day before it mentioned it is gearing up for an AI race in context to Chat gpt and the very next day it lays off employees. Microsoft is hiring for other positions too in parallel.
How are Tech Recruiters affected?
They get laid off first
The majority of the layoffs are affecting tech recruiters. Many people believe that recruiters’ jobs are simple and unaffected by layoffs. It takes a lot of time and effort to find candidates who are enthusiastic about working for a company, and recruiting is not an easy business. During the layoffs, they were the first group to be targeted. How can you expect recruiters to be safe when companies are not being kind to engineers? Recruiters are the first to be laid off in every department.
When you combine this with high turnover rates from employees who have been laid off or quit after being let go, you start to see why recruiting is so difficult for everyone involved.
Laid off Tech Recruiter struggle to find new jobs
It’s not just a matter of fewer jobs available, it’s also about who is getting hired for those jobs. Tech recruiters are used to having to compete with other industries for new talent; now, they’re going up against their old companies for positions that have been vacated for hiring experts with specific skills, especially AI like Microsoft did.
The best way to mitigate this problem is to be proactive about your own career development and stay on top of industry trends. If you’re looking for a change of pace or a way to grow your skill set, consider taking on some consulting gigs or working on a project outside of your day job that way, if things get tough later on down the line, you’ll already have experience working in another industry and know how to adapt when necessary.
Trouble finding candidates due to a large pool of talent
The effects of the pandemic-caused shake-up in the job market. With a looming recession and seemingly permanent layoffs, everyone from startups to major tech firms is feeling the pinch. Consequently, a vastly expanded talent pool is returning to the job market to look for employment. Recruiters are having a hard time finding qualified candidates to fill their openings as a result of the large talent pool. There are many qualified workers who have lost their jobs, and there are also many qualified people in their fields who are switching to new positions.
To fast-track the applicant’s experience and direct job seekers to roles that suit their skills, Mezino relies on an intelligent system that uses AI and Deep Learning Models to match the best candidates with the most suitable jobs while considering hundreds of data points based on the applicant’s profile. With the right tools in our arsenal, Mezino aims to transform this hiring and recruitment industry. So if you’re having trouble you can seek help and get experts hired within 24 hours.
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FAQ’s
Why are big tech companies laying off so many people?
Due to inflation and their overhiring during the pandemic, large tech companies have been laying off employees. Several businesses made mistakes when gauging demand during the pandemic. They are now required to fire employees as a result. However, not all businesses are like that; some are reorganizing their current teams. To survive in a world where everyone is investing in AI technology, they are looking for AI experts
Why are tech companies freezing hiring?
Businesses have been forced to make difficult decisions since the pandemic. Laying off workers has ruined the reputation of a number of companies. Therefore, to avoid a similar situation in 2023, companies have been freezing hiring just like Apple did as a precautionary measure.
Do recruiters get laid off first?
Yes. Recruiters often find themselves out of a job first when economic decline sets in. This is because when a company aims to cut its expenses, it doesn’t hire more; instead, it retains only the top talent essential for its survival.
