Why are tech companies laying off staff in the thousands?

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Tech industry is responding to economic uncertainty, with leading companies undertaking a string of massive layoffs in what appears to be a continuing trend from last year

As economic uncertainty mounts, the industry has responded with a string of layoffs – thousands of them, in what appears to be a continuation of the preceding year. it was letting go of 10,000 employees, in effect reducing the company’s total workforce by less than five percent.

in excess of 18,000 employees, which will be the company’s single largest workforce reduction in its 28-year history. The latest announcement by Amazon comes months after the company said it would be laying off 10,000 of its staff, after a report by A similar economic uncertainty last year saw over 120,000 people, working with big tech players such as Meta, Amazon and Netflix, getting laid off from their jobs – a trend that has left many worried.

“Behaviour spreads through a network as companies almost mindlessly copy what others are doing. When a few firms fire staff, others will probably follow suit. Most problematic, it’s a behaviour that kills people: for example, research has shown that layoffs can increase the odds of suicide by two times or more,” Pfeffer tells“Moreover, layoffs don’t work to improve company performance. Academic studies have shown that time and time again, workplace reductions don’t do much for paring costs.

 

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