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Summarize this content to 100 words Technical analysts Bernstein announced that layoffs in the technology sector have been reduced to a minimum in the past few months. The investment company has been tracking IT staff reductions every month, but this week officially stopped updating the information. The latest report, published on Monday, cites data from Trueup.io and shows that 4,937 jobs were cut in the tech sector in August. If the trend continues, no more than 11,000 people will be laid off by the end of the year. This is much lower than the layoff statistics for the first six months of this year, when more than 300,000 IT jobs were cut. “The recession in the labor market is over,” Bernstein said in a recent email to clients. According to Insider, the improvement of the situation on the labor market should be thanks to OpenAI, which triggered the boom in generative AI. AI startups have raised billions of dollars this year, and “when they’re not frantically buying GPUs from Nvidia, they’re spending some of their money hiring engineers and other AI professionals.” Most major tech companies have suspended layoffs, and some are even rehiring employees they parted with months ago. Meta* conducted several rounds of layoffs and lost about 25% of its workforce (Layoffs.fyi, a website that regularly tracks technical layoffs, says 21,000 people). In June, several dozen of them returned to the company. In the last months of 2022 and January 2023, Amazon laid off about 18,000 employees, and already in February, the vice president of personnel at AWS Ian Wilson said that the company was looking for ways to rehire some of the dismissed specialists. However, this did not prevent Amazon from laying off another 9,000 people in March.Google laid off 12,000 people, Microsoft – more than 10,000, Amazon reduced its staff by more than 27,000 in total, and Elon Musk thinned Twitter’s staff by more than 80%. Layoffs are now at their lowest level since February 2022, according to Layoffs.fyi. Release in 2022. Source: Trueup.ioFortune, in its commentary on the news, mentions how the labor market has changed in recent years. At the height of the pandemic, the most demanding and able-bodied specialists managed to combine work for several companies. Almost simultaneously, active hiring and the “big result” began, when companies unreasonably hired a lot, and the best and most ambitious employees were fired en masse in search of the most profitable job offers. Then came the period of mass layoffs, which, according to the publication, also has the merit of artificial intelligence: “Can AI become the lifeline that will preserve the means for the existence of engineers, and not replace them? That would be an ironic twist.” * Meta Platforms, as well as its Facebook and Instagram: recognized as an extremist organization, its activities are prohibited in Russia; prohibited in Russia
Experts believe that the period of mass layoffs in IT is over
Technical analysts Bernstein announced that layoffs in the technology sector have been reduced to a minimum in the past few months. The investment company has been tracking IT staff reductions every month, but this week officially stopped updating the information. The latest report, published on Monday, cites data from Trueup.io and shows that 4,937 jobs were cut in the tech sector in August. If the trend continues, no more than 11,000 people will be laid off by the end of the year. This is much lower than the layoff statistics for the first six months of this year, when more than 300,000 IT jobs were cut. “The recession in the labor market is over,” Bernstein said in a recent email to clients.
According to Insider, the improvement of the situation on the labor market should be thanks to OpenAI, which triggered the boom in generative AI. AI startups have raised billions of dollars this year, and “when they’re not frantically buying GPUs from Nvidia, they’re spending some of their money hiring engineers and other AI professionals.”
Most major tech companies have suspended layoffs, and some are even rehiring employees they parted with months ago. Meta* conducted several rounds of layoffs and lost about 25% of its workforce (Layoffs.fyi, a website that regularly tracks technical layoffs, says 21,000 people). In June, several dozen of them returned to the company. In the last months of 2022 and January 2023, Amazon laid off about 18,000 employees, and already in February, the vice president of personnel at AWS Ian Wilson said that the company was looking for ways to rehire some of the dismissed specialists. However, this did not prevent Amazon from laying off another 9,000 people in March.
Google laid off 12,000 people, Microsoft – more than 10,000, Amazon reduced its staff by more than 27,000 in total, and Elon Musk thinned Twitter’s staff by more than 80%. Layoffs are now at their lowest level since February 2022, according to Layoffs.fyi.
Fortune, in its commentary on the news, mentions how the labor market has changed in recent years. At the height of the pandemic, the most demanding and able-bodied specialists managed to combine work for several companies. Almost simultaneously, active hiring and the “big result” began, when companies unreasonably hired a lot, and the best and most ambitious employees were fired en masse in search of the most profitable job offers. Then came the period of mass layoffs, which, according to the publication, also has the merit of artificial intelligence: “Can AI become the lifeline that will preserve the means for the existence of engineers, and not replace them? That would be an ironic twist.”
* Meta Platforms, as well as its Facebook and Instagram: recognized as an extremist organization, its activities are prohibited in Russia; prohibited in Russia
