The big difference between a job at a larger company and a small tech consultancy is in two words – “job security”. Earlier, it was a well-known fact that the larger companies (and government in some countries) provide secure jobs. But in recent times, there is an alarming increase in lay off in the tech sector and some layoff tracker websites have been launched, such as
layoffs.fyi. It is difficult for a Java developer of Amazon to work as a freelancer or start a consultancy firm within a few days and start earning money. So life is not going to be easy for these “newly jobless” and probably they have to find a new job. Now, let us discuss the possible contributing factors behind this phenomenon of mass laying off.
Note that, not only these tech companies are laying off employees, but they are also shrinking their businesses, like we have discussed IBM’s decision to close Watson IoT platform.
Present Situation – Pandemic & War
The pandemic has slowed down the growth and just near the end of the pandemic, Russia invaded Ukraine. These two counties, Russia and Ukraine have a direct and indirect relationship with the global software & marketing industry. Ultimately there is rising inflation in the majority of the countries. Maybe there is an anticipation of the upcoming recession. There is no good news for the world till the Russia – Ukraine ends. Today is the 434th day of the war. There was no decrease in the background activities behind the servers and marketing on the internet.
Tech companies faced a record-high profit during the pandemic and happily increased hiring to meet the rising demand. Possibly people now are reverting to their near-normal routines resulting in a lower demand for tech services OR the giants are optimizing their businesses.
“As we saw customers accelerate their digital spend during the pandemic, we’re now seeing them optimize their digital spend to do more with less.” – Microsoft
Many of the larger companies have spoiled the employees by providing a luxurious lifestyle probably to lock them within the companies. Luxurious buses, on-site gym, massage therapists, luxury healthcare, free beer & wine, exotic fruit, what not. The social experiment was performed on a global scale. They hired a poor’s son from the poorer nations, poured royal luxury and at last told him “We do not need you”.
The owners and directors have more mental work than an employee. They can not concentrate on how nice the luxury is, often they are used to such luxuries since they took birth. The actual effect of Elon Musk enjoying luxury is not like an employee enjoying luxury. The employee will become less productive. Probably this is a big factor behind the present decisions.
They hired more, spent more and now anticipating the upcoming recession. Their quick fix is “kick out them”. This is an inhumane way of thought which can damage the image of the industry and no way compatible with free software or open source philosophy.
The root cause of the present situation is the set of wrong decisions taken in the past. While it is true that the pandemic or the war created an odd effect, it is difficult to ignore the over-expenditures. Laying off employees will lead to lesser production. We do not know what is waiting. But what is ongoing is inhumane.
There is a popular sloka by Chanakya.
“Swagruhe Pujyate Murkhaha;
Swagraame Pujyate Prabhuhu
Swadeshe Pujyate Raja;
A fool is worshipped in his home. A chief is worshipped in his village. A king is worshipped in his kingdom. A knowledgeable person is worshipped everywhere.