BLUFMany tech companies are responding to current economic conditions by dramatically reducing the number of employees.
This article by Elizabeth Lopatto, writing for The Verge, makes the following points:
- Investors have changed and are concerned about the ratio of revenue to employees.
- Companies are concerned about the outlook for online advertising, the primary source of revenue for many tech companies such as Facebook.
- Layoffs should save money in the long run despite the initial costs in severance pay.
References from the Web:
- JAN 2023 The Real Reasons For Big Tech Layoffs At Google, Microsoft, Meta, And Amazon—Forbes
- JAN 2023 Amid an onslaught of tech layoffs, here are 12 major tech companies that haven't announced any job cuts in the past 6 months—Insider