According to data from the Technology Industry Layout Statistics Network, since 2022, the number of layoffs in the technology industry in the global technology industry has exceeded 100,000, most of which are concentrated among American technology companies. In the past 40 days,

Author: Li Yunfei | Source: Original

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Black swan event in recent years can be said to be the best in history, one after another. First, the COVID-19 pandemic was raging around the world; then the conflict between Russia and Ukraine led to the rise of global energy prices and prices; the other is that the US dollar raised interest rates six times in a row, causing Vietnam, Japan, the United Kingdom, Switzerland, , South Korea, India and other countries to be on the verge of collapse; now we are facing the most global layoffs in history.

According to data from the Technology Industry Layout Statistics Network, since 2022, the number of layoffs in the global technology industry has exceeded 100,000, most of which are concentrated among the technology companies in the United States. In the past 40 days, seven Internet giants in the United States have laid off more than 80,000 employees!

Regarding the last black swan event, I can only say that there will be a cause and effect. All of this is the result of the first-hand director of the United States. Now the United States can only swallow the bitter fruit with tears in its eyes, no one else’s fault. Let's continue to look down.

Some time ago, Meta, the parent company of facebook, announced that it would lay off 11,000 employees, accounting for about 13% of its total employees. After Meta, senior executives of the US e-commerce giant Amazon are also considering comprehensive reductions in spending, planning to lay off 10,000 employees, or 3% of the total number of employees. The layoffs will be concentrated in the company's sales, human resources and equipment departments.

. According to previous financial reports, Amazon lost more than $2 billion in the second quarter, laying off 99,000 employees, most of whom were warehouse employees. These layoffs combined with the major layoffs of more than 10,000 people this year, Amazon has laid off more than 100,000 people. It can be said that this layoff is the largest layoff in Amazon's history.

In addition to the two companies above layoffs, a wave of layoffs has also set off since Musk acquired Twitter for US$44 billion. Currently, of the 5,500 contract workers on Twitter, about 4,400 have been laid off, and the overall scale of layoffs has reached 50%. Musk said that when the company loses more than $4 million a day, layoffs are no choice. In fact, Musk had issued a bankruptcy warning before and said that he sold Tesla stocks to save Twitter.

In addition, according to reports from multiple media, software giant Microsoft has also laid off about 1,000 employees worldwide. Although Google and Apple have not announced layoffs at present, it has also slowed down the pace of recruitment. What's more serious is that now the global layoffs of are gradually expanding from the technology industry to other fields such as finance, media and entertainment.

Now Barclays and Citibank in the United States have joined the latest list of layoffs, and Credit Suisse, Switzerland, is facing rumors of bankruptcy.

Disney company CEO also said that Disney is suspending recruitment plans in a targeted manner to limit the number of new employees. Except for a few of the most critical positions that promote business development, recruitment of other positions will be suspended. Disney is also reviewing sales and management costs and plans to lay off some employees to ensure the implementation of cost control measures.

In addition to Disney, other large American media and entertainment companies including Warner Bros. Exploration, Netflix have conducted multiple rounds of layoffs due to sharp decline in valuations; global retail giant Walmart also launched holiday transactions in advance to clear off excess goods.

Speaking of this, is this the largest black swan event this year? And this is the result of a first-hand director in the United States. Why do you say so? Let’s see the truth behind this together.

First, let’s talk about the subjective reasons first, that is, the reason for the downward trend of in the economic cycle.

Since the outbreak of the epidemic, the United States has begun to continuously release money, which has pushed up the stock price of Internet technology companies. Under the temptation of optimism, they have begun to invest ahead of time and recruit people to spend money. Let’s give an example. A year ago, in order to develop their own businesses, these technology companies started a personnel grabbing model. Employees with an annual salary of only $150,000 were hyped up to $300,000. Why is this happening? Because it was too easy for these technology companies to make money at that time, in order to seize the market opportunity, what was this little money?

But what I never expected was that in order to control high inflation, the United States began to raise interest rates continuously. Immediately after the currency tightened and the US dollar returned, the US stock market and real estate market also faced both declines. Against this background, the funds of these technology companies in the United States were drawn from blood, the bubble in the stock market was also burst, and technology companies ushered in a cold winter. The key is that the bubble bursts faster than anyone imagined, which completely caught these technology companies off guard.

According to analysts, the downward trend in the economic cycle has affected consumers, and reducing spending and adjusting employee structure are the decisions these technology companies have to face.

The reason is that these technology companies are not only inseparable from the rash behavior of these technology companies being knocked out by money, but also inseparable from the consequences of the United States' unblocked harvest of wealth around the world. Do you think this is a self-inflicted person?

Second, let’s talk about the objective reasons, that is, the reasons for industrial structural adjustment.

The Internet has developed to this day, from layoffs of major Internet companies in my country last year to layoffs of major global technology companies this year, it is not difficult to see that the bottleneck of industry development has come. To put it bluntly, the industry's business model has encountered the ceiling.

Let’s take a look at meta and Twitter companies. The main business of these two companies is advertising revenue, so in order to gain the favor of advertisers, they can often only attract attention without bottom line. In the end, in addition to vicious competition, they also compete between stocks, and did not conduct technology innovation to bring new growth points.

Let’s take a look at the major domestic Internet companies. During this Double 11 period, everyone seemed very calm, without much publicity, and no proud performance. Why? Because the development of the industry has basically come to an end, if no other innovative sectors have brought performance, e-commerce will be like this. Even as the country strongly supports the real economy, the e-commerce market will shrink.

So, whether from the perspective of domestic or foreign, these Internet giants themselves are ushering in a transformation, which is a major international Internet change. And these companies are naturally in pain in the process of this transformation, which will also prompt the re-match of talents and positions in the market.

The structural adjustment of its own industry is the ultimate reason for the major layoffs of global technology companies this time.

Global chill is coming. So as us domestic companies, we should also be able to make a prophet, so as not to invest randomly, and not to expand without bottom line. Just as Ren Zhengfei said, surviving within 3 years is the top priority. For ordinary people, the only thing they can do now is to keep their work, consume rationally, and reduce all unnecessary expenses.

Because only by preserving our strength can we have the confidence to stand up after the storm.

Author: Li Yunfei, founder of a well-known Internet company and CEO of a large food chain company. He has been engaged in the Internet and physical chain industry for 16 years. He has been reported continuously by well-known media platforms such as Sohu.com, NetEase Finance, Tencent, Phoenix.com, Zhongxun.com , Baidu , etc. He is good at financial knowledge analysis and entrepreneurial guidance!