The technology industry will have a big year in 2024. Nvidia beat revenue expectations. The AI boom will continue. The tech-heavy Nasdaq index is up more than 8% since the beginning of the year. The U.S. economy is also doing surprisingly well, with payrolls increasing by 353,000 in January, well above economists’ expectations. The better-than-expected inflation data also means the Fed may not cut interest rates as soon as the market expects, indicating that the economy remains strong enough to support higher interest rates for an extended period of time. However, it’s a different story for those working in the high-tech industry. “The layoffs through early 2024 signal a seismic shift in the technology industry,” said Jeff Shulman, a professor at the University of Washington’s Foster School of Business. “Layoffs will continue to occur as the future of work, the future of technology, and investors’ risk appetite and growth versus profitability change dramatically.” The number of layoffs exceeds the number of layoffs in 2023. Some 42,324 tech workers have been laid off so far in 2024, according to Layoffs.fyi, which tracks layoffs in the tech industry. This means that in 2024 he will be laying off an average of more than 780 people per day. In 2023, about 263,000 technology employees were laid off, and in the same year, he averaged about 720 people fired per day. There are several factors behind churn. Artificial intelligence is at the forefront of this. Companies need to free up cash to invest in the chips and servers that power the AI models behind these new technologies. There is also the influence of the stock market. Companies that cut jobs are not punished by investors or profits. Watch the video above for a closer look at why tech workers are poised to endure another tough year of layoffs, and why the incredible strength of the U.S. economy won’t help them. Sho.Produced by Anuz Thapa Edited by Michael Hoyt Narrated by Jordan Smith Graphics by Jason Reginato and Christina Locopo Supervising Producer Jeff Morgantine
Friday, February 23, 2024 18:51:52 GMT