The number of white-collar job seekers has increased making it more difficult for those who need work to find employment. The number of white-collar jobs is not decreasing, but with 85% of workers seeking new opportunities to find more flexibility, while thousands of laid off tech workers seek employment, there aren’t enough jobs to go around. Executives originally blamed the mass layoffs on a pandemic hiring binge yet the layoffs are continuing after job numbers returned to normal. When you consider the major companies behind most of the layoffs, the reason behind them can’t be based on revenue…or can they?
At the end of 2023 and the beginning of this year, nearly 300,000 high-paying tech jobs were cut by companies like Tesla, Apple, and Dell. Tesla’s revenue in 2023 grew to nearly 96.8 billion dollars. Instead of rewarding employees for their hard work and dedication after a successful year, they were let go. Due to recalls, the company’s revenue dropped in the first quarter of this year but was expected to increase due to Tesla’s plan to release an inexpensive car that would appeal to the masses.
Much to the dismay of investors, Elon Musk decided to scrap his plans for the affordable $25,000 Tesla to focus resources on a robotaxi that will be revealed in August. By firing 14,000 employees, he’ll be able to hire AI workers that can help him achieve his new goal. Until then, Elon says the 10% reduction in workforce is necessary to enable the company to be “lean, innovative, and hungry for the next growth phase cycle.”
Tech jobs used to be coveted; the work was interesting, perks were great, and salaries were high. Today, workers are considering leaving the industry due to a lack of job security. Scott Dobroski, career trends expert for Indeed, says the glory days will return eventually. For now, companies are investing in AI and focusing on innovating for future growth.