Mark Zuckerberg, in a recent Morning Brew Daily Podcast episode, has pointed to the COVID-19 pandemic as the reason for the ongoing tech layoffs surrounding the industry. Reportedly noting that it is not AI taking jobs but rather, the Meta founder and CEO claimed it is the company overbuilding during the pandemic that led to the ongoing layoffs.
The Facebook creator said in the 40-minute-long podcast episode that the "AI stuff" was not a significant reason for our ongoing tech layoffs, at least within his companies. Zuckerberg then said that the tech layoffs persist as many businesses still operate under the assumption that they should be as lean and productive as possible.
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Mark Zuckerberg, CEO of Meta, leaves the “AI Insight Forum” at the Russell Senate Office Building on Capitol Hill on September 13, 2023, in Washington, DC.
Business Insider adds that the interview saw the Meta founder claiming businesses increasingly understand there are advantages to being leaner and are no longer cutting back on staff numbers purely due to overhiring.
Fox Business reports that companies announced plans to remove 82,307 jobs in January, up 136% from the previous month, according to a Challenger, Gray & Christmas survey. Additionally, it was the second-highest January layoff total since 2009.
According to Zuckerberg, while many tech companies initially hesitated to make changes, they eventually understood it would not be the end for their firm.
Meta, Big Tech Layoffs
Meta is a large part of the ongoing tech layoffs; as part of its efficiency effort, Zuckerberg has reportedly been stripping layers off the managerial structure. Instagram is eliminating technical program managers, and other departments of Meta are also experiencing staff reductions in specific capacities.
Despite good profits, companies like Microsoft and Google have kept cutting staff. Several CEOs of businesses like Amazon have stated that they intend to reorganize the organization and invest in AI-related fields.
While AI is not a "major driver" behind the tech layoffs for Meta, as claimed by its CEO, this could not be the same for other tech companies as CNN reported last year that a few but increasing number of tech companies have given AI as an excuse for firing employees and reconsidering hiring new staff members.
AI Implications on Tech Layoffs
The tech layoffs were reportedly implied as seeing Silicon Valley leading the way in AI development and providing an early look at how companies might use these tools due to their actions.
As some may worry, the more immediate impact of a new generation of AI tools is compelling businesses to reallocate resources to better leverage the technology, placing a premium on people with AI competence, rather than instantly rendering entire skill sets obsolete. Over 260,000 jobs in the tech sector have reportedly been lost in 2023.
According to Roland Rust, Distinguished University Professor and David Bruce Smith Chair in Marketing at the University of Maryland's Robert H. Smith School of Business, the story surrounding these layoffs frequently ignores a crucial background.
The continued layoffs at IT companies portend a fall in "thinking" jobs in the labor market, which Rust predicts will push workers to seek more "feeling" professions.
Related Article: Cisco, Set to Layoff 4000 Employees in Company Restructuring
