GlobalData : lists underlying reasons for ongoing layoffs, discussed by Twitter Influencers

30 Jan, 2023 GlobalData lists underlying reasons for ongoing layoffs, discussed by Twitter Influencers

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Posted in Business Fundamentals

Tech layoffs continue to hit through 2023 as big technology companies like Amazon, Microsoft, Google announced mass layoffs in the beginning of the month. In line with this, Twitter influencers discussed the underlying reasons behind the massive layoffs and led the conversations around "layoff" to rise above 50% month-on-month in January 2023*, according to the Social Media Analytics Platform of GlobalData, a leading data and analytics company.

Smitarani Tripathy, Social Media Analyst at GlobalData, comments: "Most of the influencers opine that the ongoing layoffs are the outcome of fear of recession, while a few of them also pointed to over-hiring led by tech bubbles during the COVID-19 pandemic era. Influencers expect the contagion effect of the ongoing mass layoffs in white-collar industries to spread over blue-collar industries if the fear of recession worsens."

Below are a few of the most popular influencer opinions captured by GlobalData's Social Media Analytics Platform:

1. Derek Thompson, Editor at The Atlantic:

"4 reasons why the largest tech firms have collectively laid off 130k ppl (roughly the pre-COVID workforce of Apple) 1. The pandemic was a tech bubble. 2. Growth firms are most rate-sensitive. 3. We're in an advertising recession 4. CEO social contagion"

1. Steve Rosenbush, Bureau Chief, WSJ Pro Enterprise Technology:

"IT has largely been seen as insulated from job cuts that have hit Big Tech. The

@CapitalOne layoffs affecting 1,100 indicate that IT departments are also under scrutiny as companies tighten belts amid recession fears #CIO

@bellelin_"

1. Wendy Glavin, Founder & CEO of Wendy Glavin Agency:

"With the slowdown in economic growth, fears of a recession, and AI are sparking massive layoffs in Big Tech and other industry sectors:"

1. Aaron Sojourner, Labor Economist:

"The main risks that could cause big rise in layoffs are both govt policies: - destruction of U.S. financial credibility by the House majority, or - too hawkish Fed."

1. Jennifer Kim, Founder & CEO of Workflow:

"more layoff announcements from startups has got me thinking about "inefficiency" and how the actual problem is sometimes founders who didn't want to deal with certain parts of their jobs (e.g. sales, talent) and ended up over-hiring even tho fulltime roles couldn't be justified"

1. Daniel Zhaou, Lead Economist & Senior Manager at Glassdoor:

"Gotten a few q's about if we could see just a "white collar recession": I think it's way too premature for that. Even though #tech, finance, etc. have had prominent layoffs, if things worsen, it's hard to see that not spilling over into "blue collar" industries."

*As of 30 January 2023

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