Technology News : The world’s biggest tech companies are generating record revenues, at the same time they’re laying off thousands of employees. Microsoft is the latest example. The company is offering voluntary layoffs to around 60,000 employees. This means, employees can leave the company at will and receive benefits in exchange for agreed terms. While this is not a complete layoff, it clearly indicates that the company intends to reduce its workforce. Microsoft employs approximately 22.3 million full-time employees worldwide. The company expects only 3,000 or fewer employees to accept the offer.
Surprisingly, Microsoft has taken this decision at a time when its earnings are steadily increasing. Recently, the company posted a record revenue of $92.3 billion. This begs the question: when business is going well and the company is making a profit, why is there a need to reduce staff numbers?
Change in other companies too
In fact, Microsoft is not alone. Other big tech companies are making similar decisions. Oracle reported revenue of $19.3 billion last quarter, up 30% from a year earlier. Despite this, the company laid off more than 30,000 employees. Meanwhile, Amazon’s revenue rose 12% to $201.9 billion, but more than 16,000 employees have lost their jobs this year.
AI is changing the way we work
AI is believed to be a major factor behind these decisions. Companies like Microsoft, Amazon and Oracle are spending billions of dollars on AI. They are increasing the use of AI in their businesses to do more with fewer employees. In a report by India Today, Ruchi Sharma, assistant professor at IMI Kolkata, explained that layoffs do not always mean that their existing business is going bad. Sometimes, companies change their processes to anticipate future needs. Another expert in the report says that tech companies are now focusing on cutting costs and improving efficiency rather than rapidly increasing headcount.
What should young people do in the age of AI?
The increasing use of AI in the future could further transform the job market. Experts believe that the human need will not disappear completely. Humans will continue to play an important role in tasks such as creative thinking, decision making, understanding customer needs and accountability. Young people should no longer limit themselves to textbooks; They should develop a strong understanding of programming, database and software development. Students can learn coding with the help of AI tools like Cloud and Codex. These tools can help them identify errors in code, fix it, and build projects.