After the fat cows, the big technology companies have a problem: oversized templates

  • 22

The big technology companies are in a somewhat paradoxical situation, most of them have stopped the arrival of new workers in almost all their divisions, and some have begun to lay off employees. And, at the same time, they continue to search for talent, but as they have never done before: fine-tuning the search to find exactly the profile they need and, thus, optimize resources.

The cows are losing weight. Most of the big technology companies have lived through a golden decade, with almost uninterrupted revenue growth and an economic euphoria that has led them to embark on multi-million dollar projects, make purchases in exorbitant amounts and hire hundreds of thousands of workers in bulk. However, the current economic situation, and what is feared to come, have ended that stage of infinite optimism and has made these companies begin to cut costs, as we explained in Engadget.

Of all the expenses that the ‘big tech’ are considering expendable, human resources are one of the main ones. Several companies, such as Netflix or Twitter, have addressed layoffs, others such as Meta or Google have suggested that they will fire employees who do not reach the new required levels of productivity, and the vast majority of them have stopped the arrival of workers in almost all their divisions. , with the exception of those positions that are considered essential.

precision hiring. And it is precisely in those positions where the big technology companies are now going to focus, which are still clear that they need to continue hiring to maintain their businesses, but not as before.

In recent years, and especially since the pandemic, the ‘big tech’ have maintained a wave of hiring that has oversized their workforces: in 2020 Amazon, Alphabet (Google’s parent company), Facebook (now Meta), Apple Netflix and Twitter added, together, 565,727 new employees, according to Business Insider. Now, however, the objective is to fine-tune with the new hires and that very few workers arrive, but of high quality and that fit perfectly with the vacant position.

The current market paradox. A recent study of the consulting firm PwC carried out on senior executives of large companies, including the main technology companies, indicates that many of these managers consider that the second greatest risk of their businesses is the acquisition and retention of talent, despite the fact that 52% assured that his company had frozen hiring and the 50% it was laying off. At the same time, only 9% said they would decrease investment in human resources and 42% said they would invest more in their workforce in the coming year.

“A lot of organizations tell us, ‘We may have overhired. It is possible that there will be less demand, and we will manage the total number of employees.’ But they still need to grow revenue, grow profits, and in doing so they need to attract and retain specialized talent,” explained Bhushan Sethi, PwC Global Head of People and Organization, in the study presentation.

Meta, the clearest example. The company that has most clearly opted for this precision human resources policy is Meta, which has veiled future layoffs and has frozen hiring in some of its divisions, but still has the firm intention of hiring 6,000 or 7,000 employees. in the medium and long term to shape its long-awaited metaverse, as we explained in Engadget.

Telecommuting rebellion: in the US many employees refuse to return to the office, and they are getting away with it

Microsoft, for its part, reported in May that they were going to be much more careful with hiring from that moment on, and that all incorporations must now be approved by the directors of the company before signing the contracts. Twitter or Netflix have announced similar measures.

The Roaring Twenties. The big technology companies, therefore, have been forced to restructure their workforces, set their human resources priorities and be much more successful in their hiring after the economic euphoria in recent years, with your accounts getting fullerhas led them to create mammoth templates that, apparently, are not as efficient as they should be, according to the statements of several executives of these companies, including Sundar Pichai, CEO of Alphabet, and Mark Zuckerberg, CEO of Meta.

The Amazon workforce, for example, grew almost 63% in 2020 alone, Meta’s 30% and Microsoft’s 16.8%. And Salesforce reported at the end of 2021 that they had added about 30,000 more workers that year. An economic euphoria in the technology sector that, despite the pandemic, was reminiscent of other twenties, those of the 20th century, although it seems that this time it has lasted much less.

The big technology companies are in a somewhat paradoxical situation, most of them have stopped the arrival of new workers…

The big technology companies are in a somewhat paradoxical situation, most of them have stopped the arrival of new workers…

Leave a Reply

Your email address will not be published.