Google had never done mass layoffs, and even after companies like Microsoft and Amazon announced mass layoffs, the search giant’s employees expected the company to fire underperformers at worst.
The conditions of the technology industry are similar to the time of the dotcom bubble in 2000. Tom EsayAfter the dot-com bubble, tech companies were somewhat financially weak and the market treated them cautiously, says Sevens Report Research president. He says that the mentioned companies do not want to face a pattern similar to the dot-com bubble again, and therefore they try to keep the shareholders happy by reducing their workforce and costs.
Amazon recently unveiled plans to expand into brick-and-mortar retail stores and building materials. Andy JassiIn his note, the CEO of this department announced the dismissal of 18,000 people. The online retail giant has also invested in brick-and-mortar stores for several years, for example in 2017 when it acquired grocery chain Whole Foods in a deal worth $13.7 billion.
Amazon has reported that its sales will grow by more than 9% in 2022 and reach about 514 billion dollars. This figure shows a 22% decrease in its growth in 2021. Brian OlsavskyAmazon’s chief financial officer said the company expects its growth rate to slow in the coming quarters. The brand’s cloud service business is also a very key area that investors are watching.
Neil Saunders One of the researchers of GlobalData analysis company says:
Facebook has also reduced the construction of new data centers, while in recent years it had increased the costs related to these measures. The company’s stock buyback program expanded at the same time, offering shares as gifts to compensate investors who had seen its stock fall in value the previous year. It should be noted that the value of this company jumped by 20% after announcing its latest financial performance.
Apple is the only major technology company that has not yet decided to lay off its employees en masse. the creator iPhone, like other tech companies during the Corona pandemic, did not increase the speed of hiring new workers, and its income is mostly obtained from the sale of hardware and subscription services. according to Dan Ives, analyst at Wedbush Securities, the company’s earnings provide an interesting insight into how its customers are spending around the world. He says Apple will likely cut some labor costs, but we don’t expect it to lay off its workforce en masse like other companies.
Tim CookApple’s CEO told investors last Thursday that the company’s revenue decline is partly due to disruptions in the supply chain for new iPhone models. cook It is also stated that iPhone sales have decreased by 8% compared to last year. Apple expects its revenue from smartphone sales to recover in the short term, but did not give a specific time frame for that.
California labor laws require companies to give their employees about two months’ notice before laying them off, meaning most people who lose their jobs are technically still employed. A Google employee who has worked at the company for more than a decade, and now the wave of mass layoffs has made him unemployed, says that the Internet search giant really feels like no ordinary company, and in fact describes itself as a place to realize big projects that change the world. The recent layoffs will clearly weaken this morale.
Source: The Washington Post
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