It is easy to forget that until very recently, the “Big Tech” companies were venerated and seemed invincible, but with their dramatic restructuring layoffs it is hard to ignore the fact that something big is shaking the foundations of the corporate giants. Has the peak of the Big Tech bubble been reached? Let’s take a closer look at the recent layoff rounds at some of the most well-known companies in the tech world.

What Is Big Tech?  

Before delving into the nature of the layoffs, it is important to understand what “Big Tech” actually is. Also referred to as “the handful”, it is the nickname colloquially used for the largest tech companies, namely Google, Amazon, Microsoft, Apple Inc. (Apple), and Facebook. These five titans have summed up a substantial amount of the world’s tech wealth and influence, controlling almost 40% of America’s market capitalization.

Why Are Big Tech Companies Restructuring?  

The fivefold of massive tech-giants have all gone through drastic changes over the past few months due to the current economic crisis. Plagued by market uncertainty, falling customer demand and employee attrition, Big Tech companies cannot sustain their existing growth model. In order to survive, these companies are turning to the less favored but ever-efficient measure of layoffs. It is a dangerous game; reducing staff levels can save money in the short term, but downsizing personnel can also mean that essential experience and knowledge is lost.

Big Tech Layoff Timelines  

The following outlines the timeline of the restructuring and layoffs that have taken place in each of the Big Tech companies.

Google

Google announced their restructuring plans in June 2020 and have made 3,000 cuts mainly from the sales, marketing and cloud computing teams, reducing the workforce by 2%. Although Google’s restructuring is said to be the least severe of the them all, Vice-President Philipp Schindler assured that the cuts would come from certain teams and ‘support functions’ at the company.

Amazon

Amazon began its layoff process in early 2020, reducing its workforce by 5.2%, mostly from the corporate offices and retail stores. In July 2020, Amazon reported an additional 6,000 layoffs from the corporate roles. These were part of the company’s plan to rebuild the workforce with fresher talent and new technologies.

Microsoft

Microsoft had already undertaken major staffing cuts in 2019, ousting more than 10,000 jobs. A few months in 2020 the company eliminated another 11,500 employees, The Redmond giant stated that, while some of the positions were made redundant due to restructuring and consolidation of functions, most of these positions were considered redundant because of the rapidly changing technology industry.

Apple

Apple, known for its supportive culture to its employees, seemed to be the unlikely of the Big Tech to downsize. However, the company was still forced to let go of 190 employees from their autonomous car unit in June 2020. That same month, Apple underwent its largest layoff in almost two decades, reducing the workforce by 4.3%.

Facebook

Facebook is the outlier of the five, as it is the only that has yet to announce a workforce reduction. Nevertheless, there has been media speculation that based on the company’s financial statements from the second quarter of 2020, the layoffs could come very soon.

The Aftermath of Big Tech Layoffs  

Big Tech’s layoff rounds has left many tech professionals running for their jobs. With the contraction in the demand and supply of tech professionals, those that remain in high positions of Big Tech companies will undoubtedly prosper. Moreover, the dismissal will contribute to improving the already high entry barriers to enter into the Big Tech world.

Despite this, there is a silver lining behind this dark cloud. As tech professionals unaffected by the layoffs look for other employment alternative, job hubs such as Upwork, and Hired have become even more advantageous. Only time will tell if most of the departed professionals will find jobs in their chosen field and for those who survived the rounds, working for the tech giants is about to become considerably more rewarding.

Big Tech and the Economy  

By now, it is clear that Big Tech’s reformatting is not only a result of layoffs, but a strategic overhaul of the entire economic concept of the company. The surge of uncertain economic times is reshaping the industry and it is likely that Big Tech, who IS largely responsible for the economic growth of the recent years, will be the one to lead the road of economic recovery.

Big Tech will set the example, not just technologically and economically, but also in terms of employee welfare and corporate social responsibility. The Big Five are already taking steps in the right direction and encouraging other companies to join them in recognizing their responsibility for the actions of their profits, instead of moving on to new territories with no obligation for what comes behind.

The recent layoffs at Big Tech companies seem like the peak of a bubble that has been growing for years. Although the move is said to be necessary for their survival, it has left many experienced workers without a job. Whether these five tech giants will lead the way for a positive economic turnaround or not, yet time will tell. What is clear is that the current market volatility requires them to adjust their strategies and policies accordingly. While the layoff rounds are a sad reminder of the precariousness of the economic times, they are also a sign thatBig Tech is not as powerful as it was believed to be.