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From Twitter to Meta, Amazon and Disney, many tech giants have laid off employees by the thousands, fueling fears of an impending recession.
Twitter, which has been in the news since the announcement of the Elon Musk acquisition, has reportedly terminated a large number of its contract workers. As reported, the microblogging platform had to let the workforce go without giving any advance notice to the full-time employees they collaborated with.
Apparently, 4,400 of Twitter’s 5,500 employees have been let go, on average. It should be noted that the action comes after more than 3,700 full-time employees were laid off at Twitter at the beginning of the month, just days after Musk purchased the platform.
Some of the Twitter contract employees were also from India. Reports claimed that the company fired the entire marketing and communications team in the country.
In addition, the microblogging platform is said to have fired 180 out of 230 workers in marketing, communications and other departments in India.
Following reports of the layoffs, Musk, the new owner of Twitter, reportedly told the B20 Business Leaders Conference in Bali via video link that “I have a lot of work on my plate, that’s for sure.”
However, Twitter is not the only one currently facing criticism for such moves, but it is also the best social media player, Meta.
On November 9, Meta CEO Mark Zuckerberg announced that the company would lay off about 11,000 workers, or 13% of its global workforce.
According to reports, up to 100 of India’s estimated 1,000 employees – mostly software engineers and other technology professionals – were affected by Meta’s decision.
As a further cost-cutting measure, Meta has chosen to discontinue development of its two unreleased smartwatches and video calling smart displays on the portal.
Zuckerberg reportedly told his team, “I want to take responsibility for these decisions and how we got here,” adding that “this is hard for everyone” and he was “sorry.”
Apart from Twitter and Meta, Amazon has also joined this spree. It was recently reported that to cut costs, the company is reviewing its inefficient divisions.
Amazon told some employees in underperforming units to look for work elsewhere within the company after a month-long review. The company is also closing teams in industries like robotics and retail and moving employees from some teams to more profitable divisions.
This list also includes Walt Disney, as it was reported on November 14 that to bring its Disney+ streaming service to profitability on the back of economic uncertainty, the company announced plans to freeze hiring and cut some jobs.
The severity of layoffs
Although there are many allegations regarding these layoffs, the main question is how serious this problem is and how long it persists in India.
Neeraj Bora, Founder, Surmount Business “Layoffs are not something that the company enjoys, and employees are very affected by it because companies are suddenly doing it,” the advisors Pvt Ltd, told News18.
According to him, almost all of these companies are incurring losses, and since they have not reached sustainable levels while financing is declining, it was a possibility.
“Once funding picks up, the pace of chasing growth will increase more than the hiring spree. We can expect this from more startups/companies that haven’t reached profitability. So survival is more important than not laying off employees or any kind of cut.” costs.”
Bora also expected employees in the future to look for more sustainable companies in the short term, until the financing scenario, the worldwide recession situation improves.
“After a certain period, this cycle will continue and the cycle of prosperity will begin again. This is the normal business cycle that we have experienced in the past and will exist in the future.
Rajarshi Bhattacharya, Chairman and Managing Director of ProcessIT Global, claimed that the amount of investment the organization puts behind each employee is significant and letting go of an employee whether contractual or in a role is not an easy decision to make.
He pointed out that “the current macroeconomic conditions, along with the performance of business units, force organizations to take such steps, and the impact of these decisions is not limited to geographical boundaries.”
He said, “But organizations in most cases take note of an employee’s skills before letting them go. If organizations discover that human resources can be resupplied in any other business unit, they do so.”
In the case of Twitter’s layoff, Bhattacharyya specifically stated that it’s difficult to assess what vision Twitter 2.0 (post Musk’s acquisition) will have.
“Since Musk has repeatedly proven to the world that his vision is a clue to the future, so it would be best to keep our comment on this,” he said.
But in general, he believes that it is time for organizations to consider cost cutting as a measure to improve profitability due to the current economic conditions.
He added, “We expect many organizations to take such steps in the near future and employees should immediately consider reshaping themselves to remain relevant.”
Meanwhile, Christopher Roberts, managing director of Engaged Strategy, confirmed that the 2021 investor boom is in India It was severely countered by an economic downturn, fueled by the Russo-Ukrainian war, high inflation and a hike in interest rates by the US Federal Reserve.
He explained that the majority of venture capitalists focusing on India investments kept checks outstanding, investing only in safe, calculated deals.
“It is clear that this has led to mass layoffs in India after the upward phase of the previous year,” he added.
Focusing on a different angle on this issue of job cuts, Roberts told News18: “Layoffs instill in them a negative belief that they are not good enough. If this belief system has strengthened over time, perhaps due to a lack of job opportunities or social and family pressures It can have a very negative social and psychological impact on the affected employee.”
He therefore believes that in this current situation, it is extremely important for organizations to over-communicate and convince affected employees that layoff decisions are purely clinical decisions at a business level, and do not question their competence.
In addition, Roberts said: “It is also important that they take a more sympathetic stance and provide staff with not only basic financial assistance to help them navigate the next couple of months, but also provide them with access to advisers to manage equities, as well as help where possible with alternative job opportunities in market “.
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