The current administration has had its hands full trying to salvage what is left of the economy. By salvage I mean pour gasoline onto the problem. Despite their best efforts, the trend in the economy has yet to point towards positive territory. Many have seen the effects of this in their own lives as mass layoffs threaten job security and force people to tighten their big tech checkbooks to stay ahead of the economic disaster. Analysts aren’t done predicting just yet.
Analysts are predicting more layoffs coming for these big tech corporations. Hopefully the computer warrior fact-checkers go first.
Yahoo Finance reports, big Tech might not be done cutting jobs just yet. According to D.A. Davidson Analyst Tom Forte, the recent spate of bank failures, including those at Silicon Valley Bank and Signature Bank, could indicate more trouble ahead.
Earlier this week, Amazon CEO Andy Jassy announced 9,000 layoffs at Amazon Web Services (AWS), People Experience and Technology Solutions (PTX), advertising, and Twitch. This is in addition to the 18,000 jobs the company cut in January.
In an interview with Yahoo Finance Live, Forte said: “to the extent that the bank turmoil has a greater chance of resulting either in a recession or more significant recession, I think you can see another round of layoffs in Big Tech.”
As sales in Amazon’s e-commerce and Amazon Web Services divisions have slowed, the company reported a net loss of $2.7 billion for 2022. Forte dives a bit more into detail on this topic.
The problem goes beyond layoffs. Last year, Amazon eliminated about 100,000 jobs via attrition across its e-commerce business via attrition during the March and June quarters, says Forte.
The layoffs aren’t limited to Amazon. Meteor (META) announced on March 14 that it will cut another 10,000 employees beyond the 11,000 it laid off in November 2022. A further 5,000 open and unfilled positions will be closed by the company, according to CEO Mark Zuckerberg.
Alphabet (GOOG, GOOGL) and Microsoft (MSFT) laid off 10,000 and 12,000 employees in January.
It’s almost Karma like for all these people who so heavily advocated for this administration to be losing their jobs. They probably believed they would suffer no repercussions as they censored and promoted one administration over the other. Now, look at them losing their jobs in droves. You can thank “unity maker” Biden as you clear your desks.
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