California’s tech sector is downsizing. Looks like a crisis?


In the US, more than 220,000 jobs have been cut in the new technologies sector since 2022. A sector that seems to be in doubt and wavering at a time when inflation and rising interest rates have hit the economic balance hard. Strategically, ChatGPT, which has raised doubts among traditional tech giants, is the arrival of artificial intelligence to the general public.

12,000 layoffs at Alphabet (Google), 11,000 in Meta (FacebookInstagram), for 10,000 Microsoft18,000 for Amazon8,000 at Salesforce, 4,000 at Cisco, 3,700 at Twitter… In California, the bill is salty in the tech sector (and globally, Sweden is splitting Spotify apart) 6% of salary, 600 people). For Google, that would be more than 6% of its workforce: “ Over the past two years, we have experienced tremendous growth ” said Sundar Pichai, head of Alphabet. ” Tech stalwarts are being hired at an unsustainable rate, and the deteriorating macro environment is now forcing them out of business. ” commented one expert.

The technology sector reflects the brutal opposite

For some, the dismissals were especially violent for employees who came to the entrance of the firm’s New York building in the morning to try on their badges to see if they still worked for the company. On Linkedin page, licensees talk about the terms of their departure and the shock they experienced in their professional careers. Some women learned this when they were pregnant or young mothers, and some came from abroad to work at Google a year ago and found themselves in a critical situation…

Over 20 employees learned about it via email or behind Alphabet’s closed doors, while others simply learned at home through their interconnected facilities, which operated differently that day. This technology sector, which encourages everyone to expose their lives through the mirror of social networks, has seen a cruel reflection in recent days.

In France, as in Germany, the legislation is different and the consequences of dismissals will follow. The stress still remains. Laid-off workers in the US will receive at least sixteen weeks of pay, bonuses for 2022, paid vacation and six months of health insurance. Foreign workers settled in the United States will also be able to benefit from assistance with their legal procedures if they wish to remain on American soil. Wall Street welcomed the announcement of these job cuts.

Strategic waste for GAFAs

We sympathize with unemployment, it is surprising to see negative comments, even to some extent smearing, on social networks about the attitude of these giants. And when you ask some Silicon Valley personalities their feelings are dissatisfaction expressed by comparing recent years to strategic waste for GAFA. The thunderous arrival of the expensive ChatGPT” barely a billion search engine damage, it seems that is not very expected. China’s TikTok is arguing against a lifeless YouTube, the same observation is breathless on Meta (Facebook and Instagram).

Therefore hashtag #googlelayoffs are often doubled down by those who are more aggressive about business conditions (tricky among big tech companies) and long-term strategy. Which prompted OpenAI founder Sam Altman to say: I must not be clever now…. but OPenAI, with 375 employees, is worth several billion dollars (some say 20 billion). It is an unprecedented situation in this sector and if we have doubts ChatGPT noise, they are swept by the law of the market.

About 220,000 workers in the sector lost their jobs

In addition, the technology sector is facing a difficult period in the context of high inflation and interest rates rising after a good period, especially at the height of the Covid-19 pandemic and lockdowns. According to Naveen Sarma of ratings firm S&P Global Ratings, technology groups must adopt “ they won’t grow as fast as they think or invest in new products and services “. In this context, advertisers are more reluctant to pay advertising costs, which make up a significant part of the turnover of companies such as Google, Facebook or Twitter. According to a specialized site Layoffs.fyiSince the beginning of 2022, about 220,000 workers in the sector have lost their jobs in the United States. Midnight led to hyper-growth as tech companies splashed out cash like rock stars did in the 1980s. “, the analyst emphasizes.

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