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During a conversation with the Morning Brew Daily Podcast on February 16th, 2024, Meta CEO Mark Zuckerberg stated that the recent wave of tech layoffs from last year, going into this year, were not caused by the rise of artificial intelligence (AI). Instead, he claims that the pandemic e-commerce boom is to blame. When everyone was staying safe inside their houses, venturing out occasionally to buy essentials, the majority of shopping was done online, driving big increases in online advertising and sales.
Over the last four years, as people have gone back to shopping in person and online, ad rates and sales growth have begun to level-off. With slower sales, companies are now realizing they do not need as many employees to function. Sadly, this realization contributed to the “first wave of layoffs” in 2023, which impacted employment at Meta as well as at other prominent tech companies like Amazon, Microsoft, and Salesforce.
In the interview with the Morning Brew, Zuckerberg also mentioned a second reason for continued layoffs. He said that companies are recognizing the benefits of running leaner and focusing on efficiency. Many companies are restructuring and eliminating certain management positions, like Instagram did when they laid off their technical-program managers. Despite solid earnings, Amazon, Microsoft, and Google, to name a few, have also begun to downsize or are considering it.
Mark Zuckerberg’s recent reflections on the tech industry’s employment landscape emphasize the importance of adopting adaptive strategies to effectively navigate the ever-evolving terrain of technology. This entails striking a delicate balance between economic considerations and the dynamic nature of technological advancements. Moreover, it serves as a poignant reminder that roles within the tech sector are not necessarily as stable or guaranteed as once presumed.
