Why are big tech companies firing people?

Thousands of people working in big tech companies are waking up to sudden layoffs. Brut explains what caused it.

Transcript

00:00This guy from Hyderabad was laid off two days after he moved to Canada to join Meta,

00:04which is the parent company of Facebook and Instagram.

00:06Elon Musk fired Twitter's Indian-origin CEO Parag Agrawal right after buying the company.

00:11Mark Zuckerberg booted over 11,000 Meta employees.

00:15Lostrican Amazon was planning to lay off 10,000 people,

00:18sections of the American press reported.

00:20Byjuice faced backlash for signing Lionel Messi as a brand ambassador

00:24after announcing in October 2022 that it would be laying off 2,500 employees.

00:29But what's the reason for these mass layoffs in big tech companies?

00:33Brute can explain in less than 90 seconds.

00:35The news of Meta cutting off 13% of its workforce comes after a series of tech layoffs.

00:41Taxi booking app Lyft cut nearly 700 jobs.

00:44Snap sacked over 1,000.

00:46Twitter cut half of its workforce.

00:48A lot of these companies saw a sharp rise in profits during the pandemic or shortly after it.

00:54So they went on hiring sprees.

00:56But the global economic uncertainty in late 2022 coupled with high inflation,

01:00supply chain issues and increasing interest rates made them rethink retaining expensive talent.

01:06On top of the layoffs, the companies were also rolling back some of the trademark

01:10benefits and perks they were famous for offering their staff.

01:13According to American website layoffs.fyi, which tracks tech layoffs,

01:18more than 120,000 people lost their jobs in 2022 alone.

01:22Meanwhile, Himanshu, the guy from Hyderabad who lost his Meta job,

01:25wrote that he welcomed job leads both in Canada and India.