Why Layoffs Are Increasing
Audio version available here:
Length: approx. 1 min. 20 sec.
As the tumultuous pandemic years wind down and the US economy attempts to settle inflation and interest rates, businesses have been looking for new solutions to reduce costs. Now that the Great Resignation is officially over, hiring and retaining staff is easier than ever. But now that growth is seen more as a burden than a benefit, leading to many of the biggest companies recently slashing their workforce—and they’re not done yet.
With major tech companies like Discord “‘increasing by 5x since 2020’”, inefficiency and staff bloating has become a serious issue, leading to a cut of 17% of its workforce. Despite similar moves, other companies, such as BlackRock, expect to have a larger workforce overall as they hire support for reliable areas of growth, most commonly, AI. Blowing up in 2023, many aim to become industry leaders in generative AI. For example, Google is taking action to redirect resources and new staff to its AI development, hence its recent layoff of hundreds of workers.
Employers’ focus is sharpening on efficiency and relevancy, so more layoffs are likely to come. What this means for typical white-collar jobs is that complacency is not enough. Adapting to new technology and developing relevant skills is vital in this new era. Business owners currently have a wide pool of talent to choose from, so failing to stand out as a candidate eager for the modern world will not lead to success.
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