Communications of the ACM
Why Is Big Tech Still Cutting Jobs?
Despite recent cuts, tech's biggest companies are hiring engineers to build AI systems.
Credit: Getty Images
After a year of big layoffs, job cuts at the tech industry's largest companies continued in the first month of 2024. Google, Amazon, Meta, and Microsoft all announced job cuts.
The layoffs continued even as sales and profits jumped and share prices spiked. That disconnect, tech insiders and analysts say, is reflective of an industry facing two big challenges: coming to terms with frenetic work force expansion during the pandemic, while also making an aggressive move into building artificial intelligence.
Employment in the broader tech industry, despite notable cuts at a number of companies, is still positioned for a rebound. In January, tech delivered its second month of job growth, adding 18,000 workers, according to CompTIA, a research organization. Tech's unemployment rate of 3.3 percent is below the U.S. national average of 3.7 percent.
From The New York Times
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