Thousands of people working in big tech companies are waking up to sudden layoffs. Brut explains what caused it.
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00:00This guy from Hyderabad was laid off two days after he moved to Canada to join Meta,
00:04which is the parent company of Facebook and Instagram.
00:06Elon Musk fired Twitter's Indian-origin CEO Parag Agrawal right after buying the company.
00:11Mark Zuckerberg booted over 11,000 Meta employees.
00:15Lostrican Amazon was planning to lay off 10,000 people,
00:18sections of the American press reported.
00:20Byjuice faced backlash for signing Lionel Messi as a brand ambassador
00:24after announcing in October 2022 that it would be laying off 2,500 employees.
00:29But what's the reason for these mass layoffs in big tech companies?
00:33Brute can explain in less than 90 seconds.
00:35The news of Meta cutting off 13% of its workforce comes after a series of tech layoffs.
00:41Taxi booking app Lyft cut nearly 700 jobs.
00:44Snap sacked over 1,000.
00:46Twitter cut half of its workforce.
00:48A lot of these companies saw a sharp rise in profits during the pandemic or shortly after it.
00:54So they went on hiring sprees.
00:56But the global economic uncertainty in late 2022 coupled with high inflation,
01:00supply chain issues and increasing interest rates made them rethink retaining expensive talent.
01:06On top of the layoffs, the companies were also rolling back some of the trademark
01:10benefits and perks they were famous for offering their staff.
01:13According to American website layoffs.fyi, which tracks tech layoffs,
01:18more than 120,000 people lost their jobs in 2022 alone.
01:22Meanwhile, Himanshu, the guy from Hyderabad who lost his Meta job,
01:25wrote that he welcomed job leads both in Canada and India.