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Over 70K employees have been laid off in the past 12 months by tech giants including Amazon, Microsoft, Tesla, and others

With the rising inflation crisis and interest rates at their highest, several U.S.-based companies have started to lay off large numbers of employees to protect their businesses from the fall.

According to the latest announcement from Window’s parent company, Microsoft, the organization is firing ten thousand workers, which means a total of five percent of its employees will be removed by March 31, 2023. The Chief Executive Officer of Microsoft, Satya Nadella, released a memo stating that the company is expecting to get stronger with this step.

Similarly, Amazon has also decided to let go of over eighteen thousand of its staff members. At the beginning of 2023, Andy Jassy, the CEO of this company, revealed the plan and told employees that major cutbacks would be observed in the human resources section, followed by stores. Initially, it was expected that the company would only be firing around ten thousand workers, but the latest announcement hints that the figure will be around 18,000.

Alphabet, another company famous for being the parent of Google, was trying its best to protect its workers from this, but with the crisis going worse, Alphabet released over fifteen percent of its staff from Verily.

Companies such as Crypto.com and Coinbase have also decided to remove 20 percent and 18 percent of their service staff respectively, due to the crypto market’s crash last year, which affected a large number of users, respectively.

Salesforce, which was hosting over seventy-nine thousand workers, will be laying off ten percent of its workforce, meaning around seven thousand workers will soon be laid off. The decision was announced by the co-chief executive officer, Marc Benioff.

Meta, famous for being the parent company of social media giant Facebook, will also be removing around 11,000 employees, which accounts for thirteen percent of the total staff. The company suffered a loss due to the increasing competition in the social media world as well as new policies by Apple to protect its users from third parties accessing their information.

Another social media platform, Snapchat, also removed thousands of employees from their list. Evan Spiegal, the Chief Executive Officer of the company, said that they are planning to reorganize their business as they were unable to reach their yearly goal.

With Elon Musk’s purchase of Twitter, the app came under the spotlight. Soon after his takeover, Musk laid off over thirty-seven thousand workers, accounting for almost 50% of the total workforce. Musk justified his act by revealing that the company was facing a loss of 4 million dollars per day and that the crucial step was important.

Musk also came under fire due to six thousand employees being laid off at another of his companies, Tesla. Musk explained that the company was overstaffed and workers had to be let go.

Technology companies laying off employees is a new trend in the town. Companies such as Microsoft, Amazon, Meta, and others have cut more than 670,000 jobs in recent months. The reason for the layoffs is attributed to the economic slowdown caused by the ongoing COVID-19 pandemic, as well as the shift to automation and remote work. These layoffs have disproportionately affected lower-skilled workers, such as those in customer service and data entry positions. Additionally, some experts are concerned that the layoffs could lead to a shortage of skilled workers in the technology industry in the future. Overall, the challenges that technology companies are facing due to the ongoing pandemic and the need to adapt to new technologies and ways of working.

Read next: Responsible use of technology is a developing concern for companies

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