IBL News | New York
The tech industry is readjusting its labor needs and pushing some workers out, exactly as it did in the early 2000s when the dot-com bubble burst.
Tech industry layoffs continue this year, with companies shedding around 137,000 jobs since January, according to Layoffs. FYI, Indeed.com reports that postings for software development jobs have been down more than 30% since February 2020.
Some of the largest tech employers who had never done large-scale layoffs started cutting tens of thousands of jobs.
According to a report in The Wall Street Journal this week, companies’ strategies are also shifting. They are becoming laser-focused on revenue-generating products and services instead of growth at all costs. They have also pulled back on entry-level hires and cut recruiting teams.
During the pandemic, tech companies went on hiring sprees and took on far too many workers. Recruiters enticed prospective employees with generous compensation packages, the paper explains.
At the same time, they started putting enormous resources into AI while the market experienced a frenzy of investment and a race to build advanced AI systems. AI engineers are being offered twice to four times the salary of a regular engineer.
In addition, companies outside the tech industry are also adding AI talent while relying on more consultants and outsourcing roles.
