Genevieve Roch-Decter, CFA’s Post

There are articles coming out daily now that attribute the massive layoffs in the tech sector being at least somewhat correlated to AI. Although some might offer a hot take that this correlation may be a "stretch" and that most companies have not implemented AI, and are just now looking into it, to me it is obvious that AI is causing companies to reshuffle their decks. You don't have to take my word for it - the World Economic Forum has revealed that we are in for an unprecedented churn. There's also reports from tech giants such as IBM, LinkedIn, Microsoft and more are noting that a large percentage of the working world will need to rapidly reskill. I have a Google alert for monitoring the term "AI reskill" and there's articles daily pointing to this being an actual thing happening now and impacting hiring and firing decisions. To me - it isn't a stretch. It's reality. Here's an interesting quote from an article posted today on ComputerWorld as just one example "While some companies may still be adjusting to pandemic era over-hiring, there is a significant reallocation of resources across the board into anything AI related." This isn't just for #salesforce jobs, but the tech sector as a whole. This is a global-wide change in the marketplace. So the quicker you can get through the 5-stages of grief as it relates to AI and reach acceptance to this change, the better off you will be. #rapidreskill

Is AI Really to Blame for Layoffs? 🤖 In past years, we've seen digital transformation become a scapegoat for traditional job losses and the surge in tech talent hiring. Today, AI is being positioned similarly, cited as the reason for many workforce reductions. However, we must ask ourselves: Is #AI truly the primary driver of these #layoffs, or are there deeper, #systemic challenges at play? The Real Culprits Behind Layoffs 📈 Cost Pressures: Companies are continually striving to reduce operational costs. In sectors where margins are thin, labor costs are often the first to be scrutinized. The drive to maintain profitability in the face of rising expenses can lead to workforce reductions, regardless of AI advancements. 📉 Low Industrial Demand: Several industries are experiencing stagnation or decline in demand. Manufacturing, for instance, has seen fluctuating demand influenced by various factors, including changes in consumer behavior and economic cycles. When demand is low, companies are compelled to adjust their workforce accordingly. 💹 Geopolitical Uncertainties: Trade tensions, political instability, and regulatory changes create an environment of uncertainty. Businesses, particularly those operating globally, are often forced to take precautionary measures, including downsizing, to navigate these uncertainties effectively. 👨👨👧👦 Over Hiring and Tech Sector Losing Steam: During periods of rapid growth, many tech companies over-hired, anticipating continued expansion. As market saturation, slower growth rates, and increased competition set in, these companies found themselves with a bloated workforce. This, coupled with the need to streamline operations, has led to significant layoffs to maintain financial stability. Some recent examples: Meta (formerly Facebook): In late 2023, Meta laid off thousands, citing AI and automation advancements. However, the primary reasons were declining ad revenues, increased competition, and the need to cut costs. Google: In early 2024, Alphabet announced layoffs across various departments. While AI automation was mentioned, the broader economic climate and reduced ad spending were major factors. Microsoft: Mid-2023 saw Microsoft lay off employees globally. The layoffs aimed to align with changing business priorities and reduce costs, driven more by market demands and geopolitical uncertainties than AI. Salesforce: In early 2024, Salesforce cut jobs as part of restructuring. Despite heavy AI investment, the layoffs were due to consolidating operations and addressing slowing sales growth in a competitive market. While AI influences workplace transformation and job reductions, it is not the sole driver of layoffs. Business leaders and industry professionals must delve deeper into underlying challenges to foster a more sustainable and resilient workforce. #AI #Workforce #Layoffs #BusinessStrategy #EconomicChallenges #TechIndustry Peak North

Is AI Really to Blame for Layoffs? 🤖 In recent years, we've seen digital transformation become a scapegoat for traditional job losses and the surge in tech talent hiring. Today, AI is being positioned similarly, cited as the reason for many workforce reductions. However, we must ask ourselves: Is AI truly the primary driver of these layoffs, or are there deeper, systemic challenges at play? The Real Culprits Behind Layoffs 📈 Cost Pressures: Companies are continually striving to reduce operational costs. In sectors where margins are thin, labor costs are often the first to be scrutinized. The drive to maintain profitability in the face of rising expenses can lead to workforce reductions, regardless of AI advancements. 📉 Low Industrial Demand: Several industries are experiencing stagnation or decline in demand. Manufacturing, for instance, has seen fluctuating demand influenced by various factors, including changes in consumer behavior and economic cycles. When demand is low, companies are compelled to adjust their workforce accordingly. 💹 Geopolitical Uncertainties: Trade tensions, political instability, and regulatory changes create an environment of uncertainty. Businesses, particularly those operating globally, are often forced to take precautionary measures, including downsizing, to navigate these uncertainties effectively. 👨👨👧👦 Over Hiring and Tech Sector Losing Steam: During periods of rapid growth, many tech companies over-hired, anticipating continued expansion. As market saturation, slower growth rates, and increased competition set in, these companies found themselves with a bloated workforce. This, coupled with the need to streamline operations, has led to significant layoffs to maintain financial stability. Some recent examples: Meta (formerly Facebook): In late 2023, Meta laid off thousands, citing AI and automation advancements. However, the primary reasons were declining ad revenues, increased competition, and the need to cut costs. Google: In early 2024, Alphabet announced layoffs across various departments. While AI automation was mentioned, the broader economic climate and reduced ad spending were major factors. Microsoft: Mid-2023 saw Microsoft lay off employees globally. The layoffs aimed to align with changing business priorities and reduce costs, driven more by market demands and geopolitical uncertainties than AI. Salesforce: In early 2024, Salesforce cut jobs as part of restructuring. Despite heavy AI investment, the layoffs were due to consolidating operations and addressing slowing sales growth in a competitive market. While AI influences workplace transformation and job reductions, it is not the sole driver of layoffs. Business leaders and industry professionals must delve deeper into underlying challenges to foster a more sustainable and resilient workforce. #AI #Workforce #Layoffs #BusinessStrategy #EconomicChallenges #TechIndustry

"Big tech companies' mass layoffs are not solely influenced by AI advancements. Quarterly-driven results for cost-cutting and restructuring also play a role, leading to a volatile employment environment. While some firms embrace situational-based hiring and firing, others like Zoho and Apple adopt agile and lean methodologies, avoiding mass layoffs. The founder of Dukaan infamously attributed job loss to an AI chatbot, but not all job losses can be attributed to AI. Ultimately, the approach to employee management varies across different companies, with some prioritizing long-term sustainability over short-term financial goals. #TechNews #AI #ML #BigTech #EmploymentTrends"

The latest layoffs at #Intuit and #Salesforce have me thinking... Shouldn't everyone be guaranteed severance? At least 1-Year salary. Guaranteed. Here's why: 👉 C-Suite Execs Do: It's standard practice in executive compensation for execs to have a 'golden parachute' - i.e., in the case of a layoff, a company is contractually obligated, to pay the exec:2-3X their salary, bonus, pension, stock options, etc. 👉 Layoffs Are the Norm: Organizations are regularly culling 10% of their workforce annually. And, in some cases, coming back for more. So, wouldn't it be rad to give employees the same protections we give our execs with guaranteed severance? #layoffs #severance #goldenparachute

In the rapidly evolving tech industry, marked by significant layoffs, including Salesforce's recent workforce adjustment, the role of AI and automation in shaping the future of work is unmistakably prominent. 🤖 This trend isn't just about short-term financial recalibration but is indicative of a long-term strategic shift towards integrating AI at the core of business operations. The implications for professionals across sectors are profound, necessitating a reevaluation of skills, roles, and adaptability in the AI era. Salesforce's move, albeit modest, is emblematic of the broader industry's pivot towards a more AI-centric model. Join us as we delve into the ramifications of this transition, exploring how big companies are planning for the future to navigate this new landscape and discover Salesforce's reasoning and strategy for this layoff in our article. 📃Article Link: https://lnkd.in/eaatEjCU #layoff #salesforce #techtrends #news #bigtech

Seeking Alpha AI plays role as tech layoffs surpass 100,000 in 2024 The tech industry has witnessed a surge in job layoffs attributed to the rise of artificial intelligence (AI), with over 100,000 job cuts recorded so far this year. Companies like Intuit, UiPath, and OpenText have made significant layoffs to shift towards AI-centric processes and recruit new employees with AI skills

2024 Tech Layoffs: A Comprehensive Overview Total Impact: Over 60,000 jobs cut across 254 companies (as of July 23, 2024) Monthly Breakdown: • January: 19,350 employees • February: 15,589 employees • March: 7,403 employees • April: 22,153 employees • May: 9,882 employees • June: 10,083 employees • July: Ongoing (specific total not provided) Major Companies Affected: • Tesla : Cut "more than 10%" of global workforce • Amazon : Layoffs in healthcare businesses, gaming division • Google : Cuts across various teams including Cloud, hardware • Microsoft : 1,900 employees in gaming divisions • TikTok : Cuts in global operations and marketing teams • Snap Inc. : 10% workforce reduction (about 500 employees) Notable July 2024 Layoffs: • Salesforce : 300 employees • Intuit : 1,800 employees (10% of workforce) • UiPath : 420 jobs (10% of workforce) • UKG : 2,200 employees (14% of workforce) • OpenText : 1,200 jobs (2% of workforce) Key Trends: 1. Widespread impact across tech sectors, from major corporations to startups 2. Increased focus on AI and automation, potentially affecting traditionally secure roles 3. Ongoing restructuring efforts to streamline operations and reduce costs 4. Shift in focus for some companies, leading to departmental cuts 5. Continued effects from market challenges and changing consumer behaviors Industry Insights: • Layoffs span various tech sectors including social media, e-commerce, cloud computing, and hardware • Some companies cite the need for "leaner" operations or shifts towards profitability • AI integration is both a driver of layoffs and a focus area for future growth This wave of layoffs in 2024 continues to reshape the tech industry landscape, impacting workforce dynamics and potentially influencing future innovation trends. (Data sourced from TechCrunch article dated July 23, 2024..)

In the midst of the evolving economic landscape, the tech industry is witnessing a perplexing trend. Companies like Salesforce and others have recently announced significant layoffs, yet many still report positive growth. Salesforce, for instance, laid off about 700 employees, which is roughly 1% of its global workforce, as part of an industry-wide trend following heavy hiring during the pandemic. These decisions are never easy. They're tough, stressful, and often shrouded in corporate jargon like 'headcount reduction' or 'workforce adjustment'. Behind these terms are real people with real lives, making these decisions all the more challenging. The rationale for such layoffs, even amidst positive financial results, is complex. It often boils down to companies needing to balance growth with profitability. For a long time, tech companies focused solely on growth, allowing for extensive hiring. But as the market changes, there's a shift towards optimizing resources, reducing redundancies, and reallocating capital towards more profitable ventures. What's striking is the demographic most affected by these layoffs - younger, less experienced employees, who were the first to be hired during the pandemic hiring spree. The trimming of workforce, as in Salesforce's case, has helped some companies boost their earnings, reporting rises in revenue and profit forecast. This phenomenon isn't just about responding to economic downturns but rather a recalibration of business strategies in maturing markets. It's a cycle of rapid expansion followed by consolidation, which we're witnessing in the tech sector today. As industry professionals, it's crucial for us to understand these dynamics and be prepared for the ebbs and flows of the job market. It’s a reminder of the importance of adaptability and continuous learning in our careers. https://lnkd.in/gYa_Rk7i #TechLayoffs #BusinessStrategy #WorkforceManagement #EconomicTrends #TechIndustry

To my former UiPath colleagues...I saw that they recently did another mass layoff of 10% of their workforce this Friday. As someone who was a part of another layoff cut there this Spring, it can be a terrifying time of uncertainty in your career. Remember it wasn't YOU, it is the responsibility of leadership. Mass layoffs multiple times in a year is not your fault. It is a reflection of inefficiencies in hiring and a lack of congruence with leaders. We all learn from moments like this. The state of tech is transitioning in the workforce right now, and all transitions come with a set of hiccups. Things will get better from here! My advice: 1. Apply for jobs early in the morning, directly on the website (not LinkedIn) and don't bother applying if they already have 24 hours of applicants. 2. Reach out to recruiters directly/your network and ask for referrals as soon as possible. Humility will help you in this job market. 3. Utilize a service to help with resume enhancements & interview coaching. Times and the market are different. 3. Stay positive & don't lose faith in your search, the right opportunity will come. 4. All rejections are redirections and protection! It's time to get excited about a new role & chance to shine doing something new. 5. Your network is your best friend. Use it! If you need me to share to mine, I will. If you need a recommendation, I've got your back! We're all here for each other. 6. Finally, enjoy the rest you do get right now. Work hard to find your next role and play hard too. We deserve to breathe and recenter ourselves as humans. Your family time will be a focus again. Take advantage of the time off while you can. #uipath #layoffs #workforcereduction #hiring #jobmarket #advice #recruiting #techlayoffs #economy