Big Tech's Job-Cut Tsunami

A closer look at the big tech job cut tsunami that has rocked the industry

By Mastufa Ahmed

The tech industry has recently experienced an upheaval in the form of widespread job cuts and cost-cutting measures. Big tech firms, including Amazon, Google, and Microsoft, have collectively laid off over 150,000 workers, sparking widespread concern as to the underlying causes of this move. Despite the cited reason of cost-cutting measures, the real factors are far more intricate and multifaceted, encompassing everything from economic stagnation and supply chain disruptions to the ongoing conflict in Ukraine and the rapid advance of automation and AI.

Data sheds light on a never-before pumped-up recruitment that took place during the height of the pandemic. As demand skyrocketed, tech companies embarked on a hiring spree, with Amazon alone adding an astronomical 746,000 new employees, resulting in a 93.5% increase in its workforce.

Yet, even with this explosive growth, Amazon's recent downsizing is only expected to result in a meagre reduction of 1.2% of its headcount.

In contrast, Apple has managed to sidestep layoffs altogether. With a workforce of 68,000, the tech giant has maintained stability through its approach to staffing and its CEO Tim Cook's pay cut.

The claimed justification of cost-cutting may not be the sole explanation for these job cuts – rather this could be aimed at signaling to shareholders amidst the decline of tech stock values. These Silicon Valley behemoths are among the world's most valuable firms that boast impressive profits, as well as massive cash reserves. For example, Microsoft attempted to purchase video game maker Activision Blizzard last year, offering a staggering $69 billion in cash, before federal regulators challenged the deal.

Some experts argue that AI and automation are contributing factors to the current state of affairs, as tech firms are increasingly leveraging these cutting-edge technologies in the pursuit of cost sav- ings and streamlining workflows. For instance, Microsoft terminated 10,000 employees while simultaneously announcing a $10 billion investment in OpenAI, the creators of the ChatGPT app.

Despite the recent job cuts, tech jobs still account for a tiny fraction of the US economy, and experts concur that these layoffs are likely a temporary blip in an otherwise thriving job market.

Nevertheless, for those affected by the downsizing, the impact is significant. Companies and governments are now competing for the attention of the unemployed tech professionals, offering competitive salaries, benefits, and equity packages to attract them. A recent survey conducted by ZipRecruiter found that 80% of tech professionals who lost their jobs secured another within three months of starting their search, with nearly 40% landing a new tech job within one month of being laid off.

The job cuts in the tech industry have placed a spotlight on the CEOs of these firms. Alphabet's Sundar Pichai and Facebook's Mark Zuckerberg have publicly taken responsibility for the layoffs, yet have yet to announce any reductions in their own remuneration. The story of Big Tech's job cuts serves as a cautionary tale, warning against the dangers of rapid expansion, inflated hiring and the importance of stsability. It’s a reminder that no job is immune to the winds of change.

Yet, even as these tech titans shed thousands of white-collar professionals, the wider job market is still healthy --albeit reverberating with mounting recession fears, and still offers ample opportunities for those affected by the downsizing to embark on new careers.

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Stainless steel producer Jindal

Stainless has appointed Sushil Baveja as its new chief human resources officer. Baveja comes with over three decades' experience and will be responsible for driving people strategy, enhancing workplace culture, strengthening talent management, and enriching the organisation’s growth. In the past, he has worked with organisations such as Nokia, DCM Shriram Ltd, Dalmia Industries, Cadbury India Ltd, and Gillette India, among others.

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Schneider Electric has appointed Binu Philip as the new zone vice president HR (CHRO) for greater India. Prior to this appointment, Philip was the vice president HR for the international operations for the secure power division of the company. He has been with Schneider Electric for over seven years and has been spearheading critical projects like the merger and acquisition of the L&T electrical automation business with Schneider Electric.

Global transport and logistics provider GEODIS has appointed June Koh as the new Human Resources Director for the newly created Asia Pacific and Middle East region. Prior to joining GEODIS, she held leadership positions at Heineken and Asia Pacific Breweries. In the new role, Koh will be responsible for overseeing all HR functions in the Asia Pacific and Middle East region.

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Cosmetics has appointed Nirav Jagad as its chief people officer to oversee all aspects of SUGAR’s talent and culture initiatives. Before joining SUGAR Cosmetics, Jagad was part of the leadership team that scaled Nykaa through back-to-back years of steep growth. In his past stints, he worked with companies like Randstad, Cerebrus Consultants, IL&FS and Nykaa and has also been an advisor to assist early-stage startups with scaling.

Akums Drugs & Pharmaceuticals Ltd has appointed Arvind Srivastava as President of HR. He comes with more than 26 years of comprehensive experience in people management operations and restructuring organisations. Before joining Akums, he worked with Bansal Group of Companies as CHRO & Group Head HR from April 2021 to December 2022. Previously, he was associated with Usha International as Senior General Manager of HR and Rockman Industries Ltd. as Chief Human Resources Officer.

Frontdoor, a US-based premier provider of home service plans, has appointed Kerri Jones as senior vice president and chief people officer. Jones most recently served at wealth management firm Waddell & Reed, Inc. as vice president of enterprise project manage- ment. Prior to Waddell & Reed, Jones served at H&R Block for over 11 years in a variety of positions, including senior operational roles. oadca St tEc H no Logi ES

LM ia Biz H ir ES n itin K H indria a S c H ro Management and consulting firm Dalmia Biz has appointed Nitin Khindria as Chief Human Resource Officer. He has joined Dalmia Biz from Balaji Action Buildwell Action Tesa where he worked as GM HR. Nahar Industrial Enterprises, Sonalika Tractors, and Mahindra and Mahindra are other companies where Khindria worked in various capacities.

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Telematics and delivery automation SaaS platform Roadcast Technologies has appointed Rueben Das as HR Head. An experienced HR professional, Das comes with over 19 years of experience working with Jubilant Consumers, Carz on rent, Kuoni Travel Group, Salasar Techno Engineering Ltd, and across various sectors like manufacturing, food and beverage, ground transportation, car rental, travel and management consulting.

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The National Aeronautics and Space Administration (NASA) has appointed Indian-American AC Charania as Chief Technologist, to lead technology innovation and serve as principal advisor to Administrator Bill Nelson on technology policy and programmes at the agency’s headquarters in Washington. In the role, he is entrusted with aligning NASA’s agency-wide technology investments with goals across six mission directorates and oversees technology collaboration with other federal agencies, the private sector, and external stakeholders.

The position works within NASA’s Office for technology, policy, and strategy. Before joining NASA, Charania served as vice president of product strategy at a firm that is working to bring certified autonomous vehicles to commercial aviation. His previous experience also includes working at Blue Origin to mature its lunar pReliable Robotics,ermanence strategy, Blue Moon lunar lander program, and multiple technology initiatives with NASA.

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French billionaire Bernard Arnault has named his daughter Delphine as head of Dior, effective 1 February. She will succeed Pietro Beccari, who has been the head of Dior since 2018. Beccari in turn will replace Michael Burke as head of Louis Vuitton. Delphine has been the executive vice president at Louis Vuitton since 2013, where she supervised the brand's product-related activities. Prior to this, Delphine was the deputy managing director at Christian Dior Couture. Besides Delphine, Bernard Arnault’s eldest son Antoine Arnault is also a significant part of the family business. Antoine has been the CEO of the holding company Christian Dior SE and also holds other positions within the group, such as the head of communications, image and environment for LVMH as well as chairman and CEO of LVMH's holding company Christian Dior SE.

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