Mass losses and employee layoffs.. Has the global technology sector started to collapse?

The pace of the crisis experienced by major global technology companies is in increase, due to the economic developments that have occurred since the “Corona” closures and the looming economic crisis, both in the United States, which has the largest economy in the world, and in other countries, as the current crisis it is experiencing unfolds Tech companies are opening the door to an important question, which is: is the era of the tech boom over and have companies in this sector started to collapse?

Although the total unemployment rate in the US is still low, most major technology companies have announced layoffs of large numbers of their employees, while shares of US technology companies have suffered severe losses that sent their values ​​​​plunging. market at its lowest level for many years.

Shares of some tech companies have lost more than 50% of their market value in the recent period as they announced the layoffs of large chunks of their employees, sometimes exceeding the hundreds, while none of these companies appear to have escaped to the current crisis.

A report published by the site web American “Atlantic”, and viewed by “Al Arabiya Net”, says that “when you look at this increase in mass layoffs in major technology companies, in addition to the horrific chaos that has begun to unfold on Twitter during the last few weeks and the unbelievable continued collapse of cryptocurrencies.” The big question we get in mind in this moment is: why all this happens in once?

The report adds that “the tech industry is facing a midlife crisis,” noting that “executives at the biggest tech companies have for years been diverting resources to new projects with dubious returns, such as Amazon, which recently hired more than ten thousand people to work on an intelligence product.” its artificial (Alexa).

The report said: “Proof of a midlife crisis plaguing American tech companies, Elon Musk has focused his attention on cars and rockets and has taken over the ‘Twitter’ network with a chaotic plan to boost the his business.

The Atlantic says tech companies have been shocked by inflation postpandemic and high interest rates, leading to mass layoffs among companies that seemed completely unstoppable a few years ago.

But the report concludes: ‘This period is most likely a break between the technological ages. We mainly went through the age of browsers, then the age of social media, then the smartphone app economy. But in recent months, the explosion of Il software AI suggests something is going on.” “Absolutely stunning and maybe a little terrifying. Ten years from now, looking at the tech crash in 2022, we could say this moment was a layoff frenzy between two separate movements.”

Read More About: Technology News