“New day, new round of layoffs”: Yahoo announces layoffs of 20 percent of its employees
Yahoo has joined the bandwagon of the latest round of layoffs and has decided to undergo a restructuring process. Based on the latest media reports, Yahoo has agreed to hand in pink slips to around 20 percent of the workforce working in the tech division.
The announcement for layoffs in yahoo has come after Disney CEO Bob Iger announced undergoing a restructuring process laying off around 7000 employees because of the decline in subscribers and revenue.
The massive restructuring process will impact about 50 percent of the company’s ad tech employees, accounting for 1000 employees this week. The news has come from legitimate sources after the statements released by Yahoo.
Yahoo has further asserted that the decision will allow the company to limit its focus and investments on its flagship business, named DSP or demand-side platform.
The layoffs have taken place as many advertisers have declined or reduced their marketing budgets because of the high rates of inflation and continued uncertainty about a processing recession.
Many US companies, including Goldman Sachs Group, Morgan Stanley, and Meta, have let go of thousands of employees this year to meet the demands owing to the rising inflation rates and monetary tightening policy around the world.
JP Morgan has jumped on board the list of financial institutions undergoing significant restructuring. According to reliable sources, several hundred mortgage employees have been let go by JP Morgan Chase and Company. After a few hours, when the business announced new openings and hiring for new positions, the layoffs took place.
JP Morgan has disclosed its plans to hire about 500 bankers based on reliable sources. However, the company’s spokesperson addressed the issue and stated that the organization routinely reviews its business and customer needs and adjusts its workforce as necessary. As a result, the company will add new positions where they are needed or reduce headcounts when necessary.
Layoffs have emerged at a time when the world economy is going through an economic downturn, and the concepts such as laying off employees and recession have gained major momentum. Analysts have predicted that the restructuring process will continue in 2023 when companies and global economies prepare themselves to face the drastic challenges.
According to a survey, it has been stated that there have been more than 2 lakh tech jobs lost in the previous year, with Facebook parent company Meta, Amazon, Microsoft, and Google laying off more than 51000 employees altogether. The situation is yet to be severe.
The major reasons that contributed to such layoffs are the overhiring process in various tech industries during the covid-19 pandemic, the Russian-Ukraine war, and the continuing recession.
During covid-19, many IT companies experienced massive growth and have continued with the hiring process, only to find things take a negative turn after the pandemic restrictions and lockdowns were lifted and things returned to their normal state again. Furthermore, the Russian invasion of Ukraine has disrupted the supply chain and led to a hike in interest rates and fuel costs, coupled with rising inflation. All of the factors have severe implications for the economy and resulted in the companies undergoing a laying off process.
Are mass layoffs necessary to fight against the uncertainty of recession?
Layoffs usually take place when an employer cannot afford to keep up the labor. It occurs when the labor costs are greater than the profits earned by the company. Mass layoffs by tech giants imply that the recession has finally hit the giant tech companies, which has caused a decrease in the demand for consumer goods. The impact has moved to the small-scale industries, but the large industries are severely impacted.
But, analysts have stated that mass layoffs may not be necessary to cope with the global macroeconomic condition. Other options include a decrease in salaries, postponing appraisals, or decreasing the work hours of employees. Even though there might be a shift in the industry, employers must emphasize training the existing employees rather than hiring new ones.
Edited by Prakriti Arora
