Technology companies face the post-pandemic

Technology companies face the post-pandemic

During the pandemic, the entire world turned to tech companies for alternatives to face-to-face work, merchandising and entertainment, and in 2021, with the light at the end of the tunnel already in sight, this union predicted its growth would accelerate beyond the Covid waves would continue and opted for large orders.

This year, however, the decline in the advertising market, geopolitical tensions, inflation and the recovery of the service sector have meant that its future has been skewed and the big tech leaders have started to slam on the brakes before it’s too late.

The latest business results showed that the big five tech companies — Amazon, Meta, Alphabet (Google), Apple, and Microsoft — had combined earnings of $178,992 million in the first nine months of 2022, down 19.3% year-on-year. in the same period of 2021, after an increase in costs and despite overcoming the sales threshold of one billion euros.

In particular, the collective benefits of these companies were hurt by Amazon’s losses of 3,015 million between January and September 2022 compared to a profit of 19,137 million in the same period last year due to the depreciation of the US electric vehicle manufacturer Rivian. Against Amazon, Meta, Alphabet, Apple, and Microsoft, which delivered gains, but none of them improved their results compared to the previous period.

Meta — parent company of Facebook, Instagram, WhatsApp, and Messenger — is a good example to illustrate the rollercoaster of attitude that has taken place at tech companies in recent years. The company added more than 27,000 employees between 2020 and 2021 and an additional 15,344 employees in the first nine months of this year.

However, earlier this month it completely changed its strategy after announcing the layoff of 11,000 workers, 13% of its workforce. “Many people have predicted that this would be a lasting acceleration that would continue after the pandemic passed. So did I, so I made the decision to significantly increase our investments. Unfortunately, that didn’t go as expected,” said Meta delegate and Facebook founder Mark Zuckerberg in his statement.

Tech giant Amazon, one of the largest employers in the US, which employs around 1.5 million people and which also decided to increase its workforce, began laying off workers in various sectors this month. The company plans to lay off about 10,000 employees starting this week, according to the New York Times. Amazon CEO Andy Jassy told employees in a letter that layoffs at his company will continue into next year. “It hasn’t escaped my notice, or any of the leaders making these decisions, that these aren’t just jobs we’re cutting, but people with emotion, ambition and responsibility whose lives will be affected,” he noted. Overall, more than 25,000 tech workers were laid off this month, according to the Wall Street Journal (WSJ).

But despite the many layoffs, companies are not shrinking to pre-pandemic levels. In the case of Meta, it has 13% more employees than in 2020; at Amazon, up 1% from before the pandemic; and at Netflix — which has laid off 3% of its workforce — it’s up 4% compared to 2020, according to WSJ data.

Twitter also saw a spate of layoffs for its employees as a result of Elon Musk joining the company’s board of directors. The layoffs come after Musk cut half of Twitter’s staff and apparently many of its contractors in a way many critics said was poorly done and could jeopardize the platform, which is why the European Union Commission is already looking at alternatives to the famous social network in case it is closed or privatized.

Leave a Comment