Friday, November 22, 2024
HomeAIThe IT industry's cause of layoffs: the shadow of artificial intelligence

The IT industry’s cause of layoffs: the shadow of artificial intelligence

-

Numerous computer giants, such as Dell, are placing large bets on artificial intelligence and automation, which is driving them to eliminate conventional divisions and result in the loss of many employment.

“Dell is simplifying the system. We are cutting back on management levels and realigning investment project priorities,” an internal memo pertaining to Dell’s intention to fire 12,500 workers, or 10% of the staff, was cited by Bloomberg.

As per Business Insider, Dell implemented a novel AI approach, which resulted in the aforementioned determination. Since October 2023, the corporation has been testing internal artificial intelligence capabilities, which are being used in customer care, sales tools, content management, and product development.

The “AI specter” also surfaced in Intel’s statement that it would be laying off 15% of its workforce, or around 17,500 workers, based on estimates from Reuters. In contrast to Dell, Intel must cut employees because it is trailing its rivals in the race for AI chips and because the market for chips for conventional data centers is declining.

Reorganizing, Intel is concentrating on creating AI CPUs. The corporation said on August 1st that it will cut expenditure and operational costs between now and 2025 by around $10 billion USD. “The proposal demonstrates Intel management’s willingness to take firm and decisive action to address the issue.”Solve the problem,” Running Point Capital’s chief investment officer Michael Schulman said to Reuters.

Cisco has made two significant changes in the interim. The first layoffs occurred in February, affecting 4,000 people. As the business concentrates on emerging fields like artificial intelligence and cybersecurity, a second instance is rumored to be occurring with comparable or greater numbers.

The pattern of significant layoffs in 2023 will persist in 2024. According to data from the job portal Layoffs.fyi, over 60,000 people in the technology sector have lost their jobs since the year’s beginning. By simplifying their processes, businesses like Microsoft, Tesla, Snap, Amazon, Google, TikTok, and Snap aim to save operational expenses.

causes of extended tech layoffs

Techcrunch claims that the 2024 wave of layoffs illustrates how artificial intelligence may affect human labor. All businesses, from startups to large technological companies, are automating and reinventing their processes. Organizations that invest in artificial intelligence (AI) must raise significant funds, which forces them to abolish outdated divisions.

Although several Dell workers told Business Insider that the layoffs were “difficult,” they acknowledged that artificial intelligence was altering the nature of employment. A manager at Dell stated, “From a purely business perspective, what the leadership is doing makes sense.” “They are doing everything they can to reduce inefficient labor and replace it with AI to accelerate current sales solutions.”

Reducing employees is a means to recoup business costs since, according to another employee, the amount of money spent on AI servers is rising.

In the meanwhile, Tech.co thinks that these adjustments eventually help businesses “stay” and expand. In 2024, those who are fortunate enough to avoid termination must come to terms with the knowledge that they are not safe; this is not the final purge in the technological sector.

Previously, the wave of cutting technology workers started at the end of 2022 and “swept” through 2023. Remarkably, a lot of businesses continued to fire workers even in the face of rising sales and profits.

In addition to the influence of AI, Pauline Roth, the creator of PCR (USA), noted on LinkedIn that there are several additional factors at play, such as the quick development of human resources during the epidemic. surplus crisis.

“Too many hires are made by large IT businesses. Speaking at the Evercore bank event in Miami (USA) in early 2023, OpenStore Finance CEO Keith Rabois remarked, “They hire new people, filling unnecessary positions just to meet vanity metrics about hiring.” Specifically, a lot of Silicon Valley businesses actively seek out engineers and IT expertise in order to keep them from joining the organization. rival.

But during the epidemic, they had layoffs and switched to a “year of efficiency,” as seen by Meta slashing 22%, or 21,000, of its workforce. CEO Mark Zuckerberg acknowledged in February that while layoffs were “painful and difficult” in the beginning, they had long-term advantages.

“Meta had several challenges while letting go of skilled developers. But simplifying really makes us work more efficiently,” Zuckerberg stated.

Then, in Fortune, investment bank Jefferies technology analyst Brent Thill issued the following warning: “Companies will reduce large numbers of human resources if they see other businesses doing more with leaner staff.” This is becoming more widespread in the tech sector.”

Despite the startling announcement of layoffs, IT companies are reportedly still hiring for AI projects, according to CNBC. According to training company CompTIA, there have been over 180,000 AI-related job ads in the US since the year’s began. Zuckerberg stated last week that in order for Meta to “invest in its ambitious, long-term vision around AI,” company needs cut workers and limit expenses.

Investors, meanwhile, view staff changes as a sign of strength. Professor Jeff Shulman of the University of Washington’s Foster School of Business claims that major organizations discover that simplifying improves operations, while layoffs occur when small enterprises run out of cash.

“Businesses don’t need to stop since every employee adjustment has a favorable impact on the stock market. Investors are their target audience, Shulman said to NPR. “This wave is even an imitation of each other.”

Peace Silver
Peace Silverhttps://peacesilver.site/
Life is so short, try hard is not the bad way to waste you time, try hard to become experts so that your life does not become meaningless

LEAVE A REPLY

Please enter your comment!
Please enter your name here

LATEST POSTS

Global gold prices peaked

When the US session started on August 16, the world spot price of gold shot up, setting a record of 2,494 USD an ounce. This...

Trump vows to support the US economy’s growth

Trump promised to "bring a new economic boom" to the United States if elected, but he also promised that the nation would "regress like in...

Japan could wait to raise interest rates due to political unpredictability

The departure of Prime Minister Fumio Kishida may lead the Bank of Japan (BOJ) to postpone its interest rate rise plan. Mr. Kishida declared on August...

Apple’s latest goal is a butler robot

For $1,000, Apple is anticipated to release a tablet with a robotic arm, an iPad-like screen, and AI integration. Expert Mark Gurman of Bloomberg claims that...

Follow us

6FansLike
0FollowersFollow
0SubscribersSubscribe

Most Popular

spot_img