A new wave of massive layoffs is rocking the global tech sector. In the last 24 hours two companies have announced cuts to their workforce: the digital payments company PayPalwhich announced the reduction of 9% of your staff; and the courier and logistics company UPSThat 12,000 people disengaged this Monday. They thus join 100 other large companies in the tech world, which only happens in the first month of the year They laid off about 25,000 people.
Through a letter to the market, Alex Chriss, president of PayPal, announced on Monday his intention to make a change to his employee structure to eliminate 2,500 jobs. adjust the size of our business, allowing us to move with the speed necessary to meet our customers and drive to profitable growth. At the same time, we will continue to invest in business areas that we believe will generate and accelerate growth,” she said.
Almost simultaneously, the logistics and distribution company UPS announced that it will lay off 12,000 employees, after closing out a difficult 2023 for its revenues. Although UPS is not a technology company in itself, Your case is in line with the situation of the rest of the companies technology by which they were hit an “oversized” of your staff during the pandemic, the impact of a inflation still high for the central countries and the advance of use of artificial intelligence for your businesses.
Over the past month, nearly 100 companies have announced cuts, totaling about 25,000 jobs worldwide. Almost all those known as big tech appear in this list: Amazon, Google, Microsoft, Meta, among other things, they have decided to reduce staff as one of the first measures in 2024.
In total, according to the site layoffs.for your information, which collects information provided to the stock market and has been replicated by large global financial media such as the Bloomberg news agency, the Wall Street Journal and The NewYork Times newspapers, More than 28 thousand jobs in the sector have already been lost since January 1st.
The industry stopped going through the boom “boom” achieved during the pandemicwith full employment, fight for hiring talent and high salaries for almost all of its positions. This year’s layoffs come on top of another 250,000 cuts in 2023, which Wall Street highlights as The worst 12 months for Silicon Valley since the dot.com bustin the 2000s.
Changing global financial conditions post-pandemic have severely impacted these companies’ margins and their projections. Everyone is now trying to be more efficient with their spending and resources.
Source: Clarin
