Tag: sector

There is a growing trend of job cuts in the global tech sector as companies prioritize resources for their artificial intelligence (AI) initiatives. According to Layoffs.fyi, more than 165,000 people were laid off by tech companies in 2022, followed by 264,000 in 2023. The latest data reveals that in 2024, over 132,900 employees have been laid off by 410 tech firms so far. In a study of over 700 layoff announcements from the tech industry tracked by trueup.io, BestBrokers estimated that over 203,946 employees have been laid off by more than 165 tech companies worldwide since the beginning of the year. Many tech companies have directly attributed the layoffs to the integration of AI and machine learning into their operations. Companies like Cisco, Dell, Meta, Amazon, and Intuit have all announced layoffs while focusing on investing in AI-related ventures. IBM and Reliance Industries have also made similar moves, with a focus on AI as a key enabler for future growth and efficiency. Roger Lee, the creator of Layoffs.fyi, explained to Bloomberg Technology that companies are cutting costs in other areas to increase investment in AI, leading to the surge in layoffs. While some tech companies have streamlined operations without explicitly mentioning AI as a driving force, others like Google and Microsoft have made strategic decisions to reallocate resources towards AI initiatives. BestBrokers highlighted that the wave of tech layoffs is also influenced by factors such as over-hiring during the pandemic, rising interest rates, and the shift towards AI and automation. Scott Galloway pointed out that AI is playing a significant role in job cuts across various industries, including tech, as companies leverage technology to enhance efficiency and productivity. Despite concerns about job losses, Galloway emphasized that AI will also create new opportunities for job augmentation and innovation in the workforce. Overall, the integration of AI in businesses is reshaping the job landscape, with companies adapting to new technologies to stay competitive in the evolving tech industry.

Tag: sector

Tech sector layoffs mount amid AI investment frenzy

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