Subbu Iyer’s Post

CNBC explores challenges currently facing U.S. tech workers, including mass layoffs, widespread cuts in company budgets, and threats of deportation for H-1B visa holders. "The layoffs to the start of 2024 signal a dramatic shift in the tech industry," said Jeff Shulman, professor at the University of Washington's Foster School of Business. The number of tech sector layoffs in 2024 has been outpacing the number of terminations in 2023. So far, about 42,324 tech employees were let go in 2024, according to Layoffs.fyi, which tracks layoffs in the tech industry. While layoffs have put stress on the workforce, a booming artificial intelligence market is giving the industry a renewed sense of optimism. Generative AI startup deals announced or finalized in the first quarter of this year totaled more than $12 billion compared to about $4.5 billion invested in the space last year, according to PitchBook. #techworkers #layoffs #budgetcuts #techindustry #booming #aimarket #generativeai

Tech (AI) disruptions and displacements are such a distressed reality for workers that it's not just recasting traditional jobs, but also trims down the very tech jobs that originated and fueled today's renaissance. And there's much more displacements ahead! This CNBC report exhibits layoffs, higher stock returns, and low unemployment numbers, but more of us should watch the underemployed and the United Way's ALICE houshold numbers. This may trigger some justifiable concerns for tomorrow's economies.😮💨

From CNBC The tech industry is facing significant challenges in 2024, with mass layoffs and budget cuts impacting thousands of workers. In contrast, the booming AI sector, especially generative AI, is sparking renewed optimism. With over $12 billion invested in AI startups in Q1 alone, the future of tech seems to be shifting towards innovation in artificial intelligence. The wave of tech layoffs in the U.S. isn't an isolated event—Brazil is feeling similar effects as global economic shifts and industry disruptions impact both regions. While different factors play a role, the growing influence of AI across markets could help pave the way for new opportunities amid the challenges. https://lnkd.in/dmEhDzxu #TechIndustry #AI #Innovation #Layoffs #H1BVisa #FutureOfTech #ArtificialIntelligence #GenerativeAI #GlobalTech #Layoffs #Brazil #TechTrends #EconomicShifts

I see so many posts on layoffs and it is really sad. I found this insightful video on YouTube: CNBC explores challenges currently facing U.S. tech workers, including mass layoffs, widespread cuts in company budgets, and threats of deportation for H-1B visa holders. How a lot of these companies lack leadership, lack future planning, only working for stock prices and investors, cutting older higher paid workforce, etc. It is quite ugly, but at least CNBC is covering the side of the laid off worker vs promoting the big tech company in this video. I also love how they call out Elon Musk for really paving the way. Hope you enjoy this video as much as I did. https://lnkd.in/ghfk34Rk #laidoff #tech #cnbc

There's a lot to unpack in this video. Are we losing the best and the brightest in tech and other industry sectors to Canada and AI? A whopping 28% of layoffs are happening in HR and talent acquisition due this overall downward trend in the job market. Will there's be a bull whip effect in the lowering of interest rates to spark job growth? Just remember AI and unemployed folks don't buy products and services nor do they pay taxes. The economy isn't just for shareholders and the stock market.

🌐 Where Are #Laid-Off #Tech #Workers Heading? With #mass layoffs impacting the tech #sector, displaced #employees are finding new #paths in emerging #fields. Many are pivoting to #industries such as #AI, #fintech, and #healthcare, or leveraging #freelance and #startup #opportunities. A focus on #upskilling and #adaptability is crucial as #professionals explore #roles #outside #traditional tech giants. Some also encounter #challenges like #visa complications, particularly those on #H-1B visas, driving #urgency in #job #hunting. 📢 #Discover more #insights: Where Are Laid Off Tech Employees #Going? https://lnkd.in/dxAckqjR

Where Are Laid Off Tech Employees Going? | CNBC Video AI is driving layoffs—here’s what you need to know about job displacement in 2024. The age of AI is here, and it's reshaping the job market with significant layoffs across industries. Here are 4 key points about how this trend is unfolding: Mass Layoffs in Tech: Over 386,000 jobs were lost in the tech sector during 2022-2023. Companies like Twitter reduced their workforce by 80%, yet their operations continue seamlessly thanks to AI and automation. Rise of AI Automation: AI is accelerating job displacement by automating repetitive tasks and boosting operational efficiency. Generative AI is projected to replace millions of jobs in the coming years, forcing industries to rely less on human labor. Global Impact on Workers: Layoffs have disproportionately impacted women, who make up over half of the job cuts. Additionally, 50,000 H-1B visa holders lost their employment status, creating widespread ripple effects across the tech workforce. Stock Prices Surge: Despite layoffs, companies are seeing their stock prices rise. Meta’s stock surged by 194% in 2023, as investors favor leaner, more profitable operations. Here’s a breakdown of companies with recent layoffs: Meta: 11,000+ layoffs Google: 12,000 layoffs Amazon: 27,000 layoffs Microsoft: 10,000 layoffs Salesforce: 7,000 layoffs Qualcomm: 1,200 layoffs Snap: 1,300 layoffs Twitter: 80% workforce reduction (~6,000 employees) LinkedIn: 700 layoffs Zoom: 1,300 layoffs Prediction: AI will continue to displace jobs, especially in roles where automation can replace human workers. This shift is likely to keep driving up stock prices as companies focus on efficiency and cost-cutting. Example: Twitter, which let go of 80% of its workforce, is still fully operational, demonstrating how AI can help companies function with fewer employees. To stay competitive in this evolving landscape, employees need to future-proof their careers by embracing new skills and understanding AI technologies. #careerdevelopment #CareerGrowth #yusufwilson #PAworkforcedevelopment #DEworkforcedevelopment #AZworkforcedevelopment #FLworkforcedevelopment #NJworkforcedevelopment #VAworkforcedevelopment #workforcedevelopment

Layoffs have primarily been driven by several key factors: 1. Economic Uncertainty: Global economic conditions, including inflation, rising interest rates, and fears of recession, have led companies to reassess their financial strategies and cut costs. 2. Overhiring During the Pandemic: Many tech companies significantly increased their workforce during the COVID-19 pandemic to meet the surge in demand for digital services. As demand has normalized, these companies have found themselves overstaffed. 3. Shifts in Consumer Behavior: Changes in consumer behavior post-pandemic have impacted revenue streams. Companies that thrived during lockdowns are now facing slower growth or declining demand. 4. Investors' Pressure: Investors are increasingly demanding profitability and sustainable growth, leading companies to make tough decisions, including layoffs, to improve their financial performance. 5. Technological Advancements: Automation and advancements in AI have also led some companies to streamline operations, reducing the need for certain roles. 👨🎓👩🎓Lessons Learned: 1. Sustainable Growth: Companies need to focus on sustainable growth rather than rapid expansion. Being cautious about hiring and ensuring a balance between workforce size and actual demand is crucial. 2. Flexibility and Adaptability: The ability to pivot in response to market changes is vital. Companies should foster a culture of adaptability to quickly respond to shifts in demand or economic conditions. 3. Financial Prudence: Maintaining a strong financial foundation and being prepared for economic downturns can help companies weather challenging times better. 4. Employee Well-being: Frequent layoffs can harm morale and productivity. Companies should consider alternatives such as retraining or redeploying employees to minimize layoffs. 5. Clear Communication: Transparent communication during difficult times helps maintain trust and morale among remaining employees, fostering a more resilient workplace culture. Overall, these experiences underscore the importance of strategic planning and the need for companies to be prepared for fluctuations in the market.

Tech layoffs will continue, but it's way more complicated than just AI. Capital for new initiatives is much more expensive than it was a few years ago, growth is less important than profitability, hoarding tech talent to sit around and not work at your competitors is no longer a strategy, etc. Understanding the dymnamics of the new reality is important. This video breaks it down nicely. https://lnkd.in/gB-6eTDC

According to a CNBC report on youtube: - Over 386,000 tech jobs were lost in 2022 and the first half of 2023. - 80% of Twitter employees left or were laid off. - 50,000 H1B holders lost their status due to unemployment. - LinkedIn laid off nearly 700 employees. - Qualcomm is planning to cut more than 12,200 jobs. - The number of job posts containing "gen AI" terms has increased by 500%. - The demand for AI professionals is 6,000% higher than the supply. - Tech companies want to cut costs by laying off workers and investing in AI. - The average salary for a tech worker in the US is $120,000. - The unemployment rate for tech workers is currently around 3%. - The number of tech startups has declined by 20% in the past year. - The number of tech unicorns has declined by 30% in the past year. - The amount of venture capital invested in tech startups has declined by 40% in the past year. - The number of tech IPOs has declined by 50% in the past year. - The number of tech mergers and acquisitions has declined by 60% in the past year. - The number of tech layoffs in the US has increased by 20% in the past year. - The number of tech layoffs in Canada has increased by 30% in the past year. - The number of tech layoffs in Europe has increased by 40% in the past year. What do you think will be the trend in 2025? Market recovery or will it keep falling? Video: https://lnkd.in/d7zQnwFY