nearly 428,000 Tech workers have been laid off in the past 2 years Amazon is cutting hundreds of jobs Tesla has laid off thousands of employees Google has announced another round of layoffs layoffs and Technology just keep coming the latest Google cutting hundreds of jobs in 2024 alone 384 tech companies have laid off more than 124,000 employees Americans are worried about their job security a full 70% of employees are bracing for layoffs in some way these Mass layoffs have had a significant impact on the job market but where did all these laid-off Tech workers go and
how are they transforming the job market the tech sector is known for its boom and bust Cycles a volatility that has been particularly evident in recent years Tech sector volatility causing the fortunes of some tech billionaires to change dramatically the basket of tech stocks lost 652 billion in market cap just on Monday alone the elimination of over 38 6,000 jobs in 2022 and early 2024 marked a historic moment representing one of the worst Tech crises of the past Century the collapse of Silicon Valley Bank over hiring after the pandemic and unprecedented interest rate hikes were
just a few of the factors that triggered this crisis but one factor in particular is reshaping the labor landscape not just in Tech but for every job done by humans artificial intelligence AI is replacing human tasks faster than you might think think artificial intelligence may play a role in how Google is restructuring artificial intelligence is going to transform our lives but will it be for the better or worse Amazon meta and alphabet All Began heavily investing in AI at the same time they were forced to significantly reduce their workforces After experiencing unprecedented growth during the
pandemic this graph shows the number of hires and layoffs before during and after 2019 under the leadership of Mark Zuckerberg for instance meta laid off more than 11,000 employees in November 2022 representing about 133% of its Workforce but this trend quickly spread to other Tech Giants Amazon announced the elimination of 18,000 jobs in January 2023 an alphabet laid off 12,000 workers about 6% of its Workforce by the end of the same year according to top Executives from these companies these decisions though painful were necess NE to adjust the bloated structures of firms that had rapidly
expanded without considering the possible consequences some of those projects have been closed or pulled back or narrowed and so companies that hired a lot during the pandemic are just finding they don't need as many people the mass layoffs had a profound impact on Tech workers despite companies like Google and Salesforce offering generous Severance packages to soften the blow uncertainty about the future has been a constant for many for example Google provided 16 weeks of salary plus two additional weeks for every year of employment to laid off workers in the US while Salesforce guaranteed nearly 5
months of pay to affected employees although the unemployment rate in the tech sector was 2% in May 2024 significantly lower than the national rate of 4% competition for tech jobs is fierce many laid-off employees have struggled to find new opportunities but women have been disproportionately affected by recent layoffs although 2third of tech workers are men more than half of those laid off in 2022 and 2023 were women according to a study that analyzed over 1,100 LinkedIn profiles the groups most affected by layoffs include HR professionals software engineers and marketing employees whose tasks were mainly replaced
by artificial intelligence and robots hiring is undergoing a revolution this is Vera a robot that does job interviews she's done 10,000 of them and Counting while the tech sector faces Mass layoffs the artificial intelligence Market is booming in the first quarter of 2024 generative AI startups announced or closed deals worth over12 billion compared to $4.5 billion invested in 2022 companies like Amazon alphabet and Microsoft have made large investments in AI which could be one of the factors contributing to recent layoffs how however according to Major Tech firms generative AI is expected to add between 2.6
trillion and $4.4 trillion annually to the global economy in the coming years suggesting the net impact on employment could be positive generative AI generating opportunity in the labor market with job postings climbing 6,000 6000% this year at the same time while machines are growing a greater number of new jobs are going to be created predicting that robots will displace 75 Mill ion jobs over the next four years but create 133 million new ones some CEOs of AI developing companies predict a net increase in employment in the tech industry Founders like crll CEO of Landy AI
a company that automates daily tasks argue that when something becomes cheaper such as AI its complement in this case Tech workers becomes more valuable additionally job opportunities for software developers are expected to grow by 26% between 2021 and 2031 despite the layoffs the tech sector is showing signs of recovery while 4,700 jobs were cut in the industry in May 2024 new opportunities were created in IT services Cloud infrastructure data processing hosting and Tech manufacturing sectors where many laid-off Tech workers have ended up as major companies like meta Google Salesforce and more cut thousands of jobs
other companies some smaller some in different sectors were eager to bring in new Talent Abbott for example has hired more than 200 Tech specific employees in the past 6 months and a company spokesperson says they plan to hire hundreds more in the coming years approximately 50% of laid-off tech workers found jobs within 6 months many relocated to emerging startups or started offering Services as Freelancers and software development Consultants the financial sector absorbed about 25% of these professionals who now work in growing fintech companies or provide financial consulting in manufacturing about 30% opted for training programs
in renewable energy and advanced manufacturing with software development the hospitality sector meanwhile saw an increase in workers who transitioned into sustainable tourism or roles in delivery and Food Services but in terms of salaries the wages that Tech workers we're accustomed to are hard to match in other Industries the average salary for a tech worker is sign ific anly higher than the national average at around $87,000 per year compared to $54,000 for the average US worker with some areas of the country seeing Tech salaries exceed $200,000 annually the average salary of a software engineer in San
Francisco United States is $242,000 the rise of artificial intelligence and automation continues to drive demand for highly skilled workers tech companies investing in AI are creating an environment where Prof professionals with programming data analysis and software development skills will continue to be highly sought after in an increasingly Digital World Tech workers specializing in these areas will need to adapt to the changing demands of the market although the job market is less favorable than it was a few years ago Tech skills remain valuable in a variety of sectors including Financial Services manufacturing and [Music] government at
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