Amazon: Amazon recently announced that it is cutting hundreds of position in its Alexa division as a part of an effort to the company’s shift towards generative artificial Intelligence. Amazon has invested heavily in the generative AI that can generate a wide range of content on various topics.
The company has cut down various roles and position in its effort to switch towards AI. The recent lay off will impact the employees in the Canada, U.S and India. While Amazon is stated the shift towards Generative AI for the recent lay off, there are many other reasons because of the big tech companies like Amazon, Google and Microsoft lay off hundreds of employees from their companies. Check more details below.
Why these Companies Lay Off Hundreds of Employees
One of the major reason of these layoff is that the global economy is on slowdown and facing several issues which includes rising inflations, geopolitical tensions and interest rates eventually leading to slower economic growth world wide.
With the changing patterns of market and economic conditions, companies need to reevaluate their priorities to grow constantly even in the tough times. For this purpose, they need to make workforce adjustments which can also lead to mass lay off in the organizations.
Over Recruitment During the Pandemic Period
Many of the major tech companies and other renowned firms experience rapid growth accounting to their shift towards online operations. This rapid growth led to over hirings in the companies which resulted into a surge in hiring in desire of continued and stable growth that they failed to materialize eventually leading to mass lay offs now.
Many of the companies opt for cost-cutting measures aiming to make more profits and they usually find lay offs a better option to reduce the overall costs.
Analysis of Some Major Companies
Amazon has recently laid off hundreds of employees in its Alexa Division along with making job cuts in its gaming and music wings. The company is facing a relatively slower growth in its e-commerce bussiness and investing a significant amount in advance technology such as Generative AI and Cloud Computing.
Google has been also seen slowing down its hiring process recently. According to a report, it also discussed job cuts. Some of the major reason Google is opting for this because the search giant is facing increased competition from its rivals and low growth in its advertisiing unit.
Microsoft also laid off hundreds of employess in the marketing and sales unit. Some of the major reason of these lay offs is its shift towards AI and cloud computing.
Byju’s, an EdTech major in India recently laid off thousands of employees aiming to scale backs its operations. Some major reason of Byjus opting for lay offs is the company is dealing with several financial scandals and significantly increased competition from its rivals in the EdTech industry in India.
These layoffs throws light on the increased challenges that several industries are facing presently. It is expected that some other tech majors will also opt for lay offs in future as companies are making efforst to mould themselves according to the dynamic and unstable market conditions.