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Big tech is thriving despite the layoffs (www.axios.com)

submitted 9 months ago by MicroWave to c/economics

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In tech, 2024 started the way 2023 did — with a wave of layoffs — even though the U.S. economy is booming and the industry is thriving.

Why it matters: Layoffs can be devastating if you're involved, but in the roiling world of tech, regular job cuts are also part of the landscape.

In tech, company leaders see layoffs as a way to stay efficient, shift priorities and weed out underperformers — while many employees, particularly those with technical skills, assume that finding a new job won't be that hard, and often they're right.
In many cases, the same companies that are laying people off are also still hiring.
Tech giants like Microsoft and Amazon, which recently cut jobs in gaming and streaming respectively, are simultaneously planning huge investments in AI.

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[–] surewhynotlem 1 points 9 months ago

And where will the AI skills come from, I wonder.

Large tech companies want to go to market for skills, and they're unwilling to train existing staff. This model doesn't work if they all do it. Someone has to train people.

And this is exactly what recruiters have been complaining about for the last 12 to 18 months. There are plenty of jobs out there, and plenty of people out there, and the skills just don't match.