The real reasons – explains the former vice president of Microsoft

Former Vice President of Human Resources MicrosoftAnd Chris Williamsand asserts that he “sees again the work” of the problems they face technology companies. After decades of experience, he experienced their “bubble” firsthand. dot com So is her The global crisis of 2008.

Talking to Business interestedAnd Williams pointed to the real reasons for the mass layoffs in the tech industry and emphasized that they are not a sign of a meltdown Big tech.

Corona Virus

Some industries like Tourism and leisure They got into big trouble because of that pandemic. Technology was a perfect contrast. Consumers staying at home has caused a huge surge in demand for tech products and services.

It was the strangest example Amazon, which considered that the mass transition to e-commerce was not temporary but permanent. Giant went on a dramatic hiring spree, From 800 thousand workers in 2019 to 1.6 million in 2021. However, when the economy “opened up” again, many consumers returned to their daily habits and traditional stores. Amazon was forced to back down.

The situation was similar at many other technology companies. the Microsoftthe Googlethe meta and even peloton They thought a pandemic would change everything. Although everyone’s daily life has changed, the speed with which the overall economy has recovered suggests that these companies have moved on. Overemployment.

If the dotcom “bubble” was caused by “irrational enthusiasm,” as its former boss put it feed itAlan GreenspanCorona virus had the same results.

exaggerations

The “early awakening” caused by the emerging from the pandemic has caused many companies to review the excessive moves they have made. The tech industry is often described as a “safe haven” for ventures and ventures without any real value.

many companies technology They were forced to study their excesses in depth after the economy “opened up”. a lot of the Layoffs In which they made progress was due to the fact that many of these workers were working on projects that had no future.

At the very least, according to Williams, most giant corporations lay off workers based on employee productivity and usefulness, not based on their years with the company. Despite all this, the sheer number of layoffs is Very painful for both workers and the economy in general.

visual angle

Some of these layoffs are moves companies have wanted to make for years They didn’t want to create a negative image for their Wall Street investors. They didn’t want to be the only giants who seemed to be laying off workers as other competitors continued to hire.

Even businessmen are generally “conservative” apple It took advantage of this opportunity as a way to rationalize operating costs, while still running a limited number of iterations.

The “coverage” provided by the financial crisis, according to Williams, provides an incentive for these companies to review their strategies.

the future

Even though we’re already in the middle of layoff season, Williams assures they will continue into the summer and fall. However, they will not cause a quagmire in the technology industry. There are still great opportunities for these companies.

The first and best of the AI ​​revolution. Microsoft and its competitors are all “into the IT world forever.” Tools like chat And other types of applications based on artificial intelligence They will radically change the whole picture of humanity.

At the same time, there is also a relatively unknown world of Quantum computers Which will change the way we deal with the returns of technology products. Quantum computers will change everything from finance to cryptography to medicine and other sciences.

On the other hand we have the digital world. although meta It may be about exaggerated MetaverseThere are several reasons for optimism for her Virtual reality and augmented reality. There is a possibility to create many solutions and applications both in terms of our daily life and in terms of industrial production and economy. Even Apple seems to have invested heavily in these technologies.

At the same time, there is also the social media industry, which seems to be going through major changes, given the Actions taken by the regulatory authorities against Tik TokAnd Twitter and Facebook.

Finally, Williams argues that the tech sector will also benefit from the huge need and importance of the year digital fix to the economy and society which will provide business opportunities for decades.

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