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Why are Tech Companies Cutting Jobs?

tech redundancies

Why are Tech Companies Cutting Jobs?

Meta, Amazon, Netflix, Shopify, Uber, Spotify, Airbnb, Peloton are just some of the tech companies announcing their sweeping lay-offs.

Although each company faces its own battles. There are 2 main causes pushing widespread job losses.

Hiring Hysteria

As Forbes is quick to point out, rather than thinking of these major lay-offs as a ‘wrong‘, we should be considering them as ‘righting a previous wrong‘! Overzealous hiring during the pandemic has been the main contributing factor to the current mass lay-offs.

Let’s rewind to our pandemic days, everything found a new home online, clothes shopping, food shopping, work meetings, entertainment, watching films, socialising. Our online lives were our only lives, and the tech companies boomed in response, hiring en-mass to keep up with demand and ride the wave of unprecedented profits. Fast-forward to post-pandemic, and it’s been difficult for tech companies to predict which ‘new-norms’ of online life would stick, and which would return to old formats. Tech giants seemed to confidently assume that our new online lives would be too superior, too convenient to give up. They underestimated our need to socialise, our need to be outside of the home and meet people in person. The pull was stronger than ever after 2 years of not being allowed to!

Waiting it out in the hope of a speedy online resurgence? Nope, that’s not a feasible option for tech companies…bring in the second contributing factor to job cuts…

Recession Looming

Advertising is a main source of income for the majority of large tech companies. Yet a crack-down on intrusive advertising practices online is leading businesses to reassess the return on their advertising spend. At a time when consumer spending is lowering, and the threat of recession is looming, slashing advertising budgets is an obvious and effective saving exercise for businesses – and it’s hitting the tech world hard!

Hiring the right candidates…

At CSnotepad we’re always looking for the right candidates to join our friendly team. Don’t wait for us advertise a position, get in touch, we’re always recruiting if you’re the right kind of person – we know how valuable you are! We offer full training for any position within our company, but from our experience we know that some things we just can’t train – a positive ‘can-do’ attitude, a willingness to offer great service, a dedication to the role and appreciation for the important role you play within the bigger team are all key traits we look for. Think you’d be right for our team? Get in touch on 01273 741400.

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