Apple, Amazon, Alphabet (Google’s parent company), Meta and Microsoft, With Tesla and Nvidiaare known as “the magnificent 7”, the name created by the financial universe of Wall Street for these tech corporations. According to stock analysts, these technology companies do not stop growing in sales, profits and value year after year. Calculations estimate that together they will sell 12% more this year and another 12% in 2025. Well above their peers in other industries.
According to a survey by BBC Mundo, these multinationals earned, as a whole, close to 327 billion dollars, 25.6% more than the previous year. A figure close to the total GDP of countries like Colombia or Chile. However, the same multinationals are going through a phase of layoffs that in some cases are considered even massive and that add to those carried out last year.
In July 2023, Microsoft cut its workforce in 2023 and will do so again in 2024, laying off 1,900 people, after closing a purchase agreement for Activision Blizzard for 69,000 million dollars. The same happens with amazonwhich will get rid of 35 percent of the workforce from its Twitch platform and another hundred from Amazon Prime, following the wave of 9,000 cuts last year.
In a report from the Reuters agency, almost 32,000 workers have been laid off from 122 technology companies since the beginning of the year and there are still 10 months to go. In the same report, it is mentioned that PayPal This year it will have 2,500 fewer effective employees, Spotify with 1,500, eBay will fire 1,000 and snapchat will cut its workforce by 500 people, to give examples of well-known firms in the technology industry.
“The history of the technology sector includes the rise and fall of large companies that end up affected by disruption and being replaced by more innovative ones of the next generation,” he stated. Brice Prunas, artificial intelligence manager ODDO BHF AM, and added: “This is what happened in the dotcom bubble and in this decade, the boom in artificial intelligence (AI) models represents a revolution.”
“Let’s take as an example the company to learn languages Duolingo. Part of its terminated staff are writers and translators, who will be replaced by algorithms,” the website detailed. Quartz. AI is fast, what takes a human writer 60 to 90 minutes to write, AI can do in 10 minutes or less. In a recent report by Goldman Sachs, It was said that AI could possibly replace the equivalent of 300 million full-time jobs.
On the other hand, during the pandemic, many tech companies increased hiring and expanded their growth plans with the idea that the market would be positioned for many more years. However, this was not the case and mass layoffs began in 2022 and much of 2023.
Finally, to this panorama was added the increase in the US Federal Reserve rate, which prevented companies from requesting credit for their future projects. “The domino effect of more expensive financing has dried up investments. This ultimately causes the closure of more and more technological projects,” he explained. Andrés Allende, manager of the DIP Value Catalyst fund of A&G Fondos, to the British media.
You may also like
by RN
Image gallery
