When will Mass Layoffs in Tech & IT STOP? | Good & Bad Layoffs News 2024 | IT Layoffs | Tech Layoffs

hello everybody Welcome to today's video well a lot of layoff news are coming in even if we want to avoid it it's just popping on our news feed artificial intelligence is eating your job UPS announced today it will lay off 12,000 employees in efforts to cut cost the California based Network giant is reportedly planning a major restructuring company after company is reporting layoffs and a decline in revenue and here I am to give you two types of updates with respect to the layoff news one what is is happening which companies are laying off what are some of the reasons they are highlighting and number two what are the positive trends that are emerging from this entire news and how we can Shield ourselves and how the economy is looking so let's jump into the first point and start to think about what are some of the reasons that companies across the board are highlighting the first one is the impact of AI well Cisco highlighted that they are laying off 4,000 employees UPS interest inly has also mentioned that they are laying off 12,000 employees UPS is one of the largest parcel companies within the US and they mentioned out of the 12,000 employees that they are laying off right now none of the roles are going to come back even when the business is going to be strong that is these roles are permanently eliminated and the reason one of the examples they have taken is now to predict the rates for Parcels the distance the availability of slots and how busy the season is based on all these factors we used to assign what is the price for each parcel now instead of people doing these jobs machine learning algorithms are doing these jobs that's their rational and they said similarly a lot more such roles are taken out by AI so no coming back the second reason that a lot of companies are now saying is it is not just about how AI is impacting but they actually want to invest in AI so they have to make these tough decisions so that they can take and transfer this spend onto AI resources and there is no better example than Google Google's CEO himself has mentioned this we are investing for that future but I think it's important refocusing and rep prioritizing within the company uh making sure we can make the Investments we need now then comes the story of companies like Cisco snap Etc Cisco snap and bunch of other companies did not report good numbers in their quarterly earnings for example Cisco's revenues have come down and the same is the case with SNAP now when they are coming up with these announcements of their quarterly results they need to show to the market that they are doing something so that it's not just the revenues are going down but the costs are also going down and hence they are coming up with these news they are saying we'll lay off 4,000 employees in the next 1 to two quarters but do these really happen when do that happens all that stuff is still up in the air and they'll only give more details in the coming quarters so while one is AI the other one is the PO poor performance and the market conditions and then the other reason is the companies themselves are saying that we have recruited a lot more people than necessary during the pandemic because the interest rates were low and there was more money available in the market and everybody was looking for that Tech Talent so these were some of the reasons why companies are coming up again and again and again with respect to their layoff news and Amazon for example has come back once again and said we are laying off a few people in Pharmacy vertical they did acquire a pharmacy company in 2023 and now they are laying off a few employees there again this is very targeted layoffs now if we move on what are some of the trends positive trends that are coming out the first and the most important positive trend that is coming out is the overall Market situations are at least looking like it will get better and why do I say that one of the biggest macroeconomic factors is the interest rates and this interest rate rate has already stabilized both in India and the US the central banks have decided not to increase the interest rates further and the expectation is come May June these interest rates will go down and what happens when the interest rates go down the consumer spending will increase of course your home loan will become more affordable when consumer spending increases the revenues of these companies automatically increase so they don't have to give reasons like what Cisco or snap or any other company is coming up with and say that we have to lay off our employees and there the market conditions are actually looking better number two is with respect to how we can learn AI well with respect to last year at least now there is a lot more of AI tools that have come up in the market wherever we are if we are in let's say software development and if you want to learn a specific AI tool there are a lot already in the market and learning these tools will improve our overall efficiency and productivity as well which will be appreciated of course by the employers for example if you are a developer and you spend a lot of time writing unit test cases now there are tools like Square test which can help you automate writing your junit test cases and this of course will improve your overall productivity look into whatever is the AI tool that is popping up in your domain or in your adjacent domain and that will help improve your overall productivity and this will go a long way well we can't wait and sit for AI to take out our jobs right we have to act on it even if we are not getting into these kind of negative new circles we still need to improve and upscale ourselves and this is a fantastic opportunity the third thing is company CEOs again Google CEO has mentioned that layoffs will continue to happen in 2024 then why am I saying it as a positive trend because they are highlighting that the scale at which the layoffs will happen we won't see as many layoffs as compared to 2023 so the numbers are going to be smaller and also very targeted if you see your Vision your vertical not performing well then you need to think about options business performance is going to be one of the key reasons it is not your performance so you need to keep a track of whether your vertical your business unit is doing well versus not so keep an eye out and if something wrong is happening then you know what to do the next positive aspect is that initially there were a lot of fears that people who are working remotely they would be the first ones targeted and of course research data does suggest the same when manager is asked to trim down their team size managers are actually putting the names who are working remotely on top of the list because they don't have any personal connection they can't put a name to the voice behind the phone every single day so they are recommending those names for layoffs but the positive side is that even if an employee is hybrid right not necessarily five days remote but 2 days remote 3 days remote even this is hybrid then the layoff probabilities are are going down much much lower I'll give you link to one of the articles in the description box which will tell you how these percentages are differing the probability of a layoff for somebody who is working remotely for somebody who is working hybrid and for somebody who is actually working full-time in the office and these things should give you confidence and the other angle over here is when people in the US are working remotely then the employers are questioning these people why should we continue to have you on the EMP employment payrolls rather we can shift Your Role to some company or to a location like India probably will get similar talent for a much lower cost so all these things are shaping up the layoffs and all these things are some which you need to keep in your tracker so that you know how to react and what to do if something happens and also how to make sure that these things do not happen to you please go ahead share it with your friends so that we are on top of this news rather than being behind see you guys take care bye-bye

Channel: Pavan Sathiraju

Views: 137,722

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Id: kjGfv3hguEo

Length: 7min 59sec (479 seconds)

Published: Sat Feb 17 2024