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Despite Booming Economy And Record Profits Google, Amazon, Microsoft And More Lay Off Over 42,000 So Far In 2024 (finance.yahoo.com)

submitted 8 months ago by L4s@lemmy.world to c/technology@lemmy.world

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Despite Booming Economy And Record Profits Google, Amazon, Microsoft And More Lay Off Over 42,000 So Far In 2024::Despite a booming U.S. economy and significant advancements in the tech sector, including a robust performance by companies like Nvidia Corp. and a thriving artificial intelligence (AI) industry, tech companies have continued to lay off workers at an alarming rate in 2024. The tech-heavy Nasdaq index has shown an impressive uptick and the U.S. economy added 353,000 jobs in January, outpacing economists’ forecasts. However, this overall economic strength masks a wave of layoffs in the tech sector

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[–] Vlyn@lemmy.zip 17 points 8 months ago (3 children)

Now compare those numbers to how much they hired during Covid and it no longer looks that bleak.

They overhired like crazy, vacuuming up all the talent so smaller companies and competitors couldn't get any. Now the interest rates are up (no more 'free' money) and they have to cut the fat.

[–] EnderMB@lemmy.world 26 points 8 months ago* (last edited 8 months ago)

While you're not wrong, no company is calling it out like this. If I were to make a catastrophic hiring mistake, I'd probably be fired. The CEO's that looked at the pandemic, saw their profit rising, and decided "it's because we're so awesome, let's hire everyone" should bear the blame.

To take Amazon as an example, if you were to take how much they paid for MGM and on Rings of Power, Amazon could have paid salaries to everyone they let go for a full year. It's a dereliction of duty at leadership level, and the high stock price is the only reason they aren't out on the street.

[–] kandoh@reddthat.com 6 points 8 months ago

Overhired and they were way to ambitious with their projections, so for the C Levels to unlock their full bonus they need to harvest skulls to meet their targets.

[–] Gakomi@lemmy.world 1 points 8 months ago (1 children)

What do you mean over hiring during Covid cause I remember them laying people off at least in my country

[–] Vlyn@lemmy.zip 5 points 8 months ago* (last edited 8 months ago)

All those companies still have more employees than they did before the pandemic: https://steve-taplin.medium.com/big-tech-employee-numbers-before-and-after-the-pandemic-tells-the-real-story-bc67779c3cc8

So including the recent firings they are more on a headcount level of 2021 or so.