Will 2023 be the year big tech companies scale back?
A report on Saturday (January 14) by The Wall Street Journal (WSJ) claims that tech companies are doing more. A “back to basics” strategy It follows a year in which more than 153,000 workers in the sector lost their jobs.
According to the WSJ, many of them were employees hired by companies that mistakenly assumed that the pandemic-era boom would continue post-pandemic. Or was simply a longtime staff member working on a “financially irresponsible” project.
“Don’t be stupid” is the advice redfin CEO Glenn Kelman He told the WSJ that if he could go back in time, he would give it to the company.
His company was one of the companies that cut jobs last year. The online real estate broker announced in November Lay off 13% of your workforce Home flipping service RedFinNow shut down.
In a message to employees, Kelman said, “While Home Services employees are still needed for concierge services to amend the list of brokerage customers, that group will spend most of their time in RedfinNow homes. It will be much smaller because we spent on the renovation.”
The layoffs at Redfin, which affected fewer than 900 employees, were small compared to layoffs at companies like Meta. 11,000 positions Last year, and Amazon said it would 18,000 jobs cut The layoffs that started last year and entered this year.
In the case of Meta, investors worried that the company and CEO Mark Zuckerberg were too focused on the Metaverse project, causing the company’s stock price to drop 64% last year, leading to thousands of layoffs.
Zuckerberg said in December that Meta’s investment in Reality Labs, the division that handles virtual and augmented reality projects, 20% of Meta’s portfolio.
While stating that it was a “mistake” to invest heavily in the metaverse when the economy went south, he also said the overall metaverse push was will prove the doubters wrong.
Overall, 2022 will be rough year For technology companies tracked by PYMNTS in the CE 100 Index, as PYMNTS reported earlier this month.
The PYMNTS said, “Inflation has run rampant this past year, rate hikes have put pressure on both businesses and consumers, and how spending, earnings, slowing top-line growth, and the massive reopening will affect everything. This has led to concerns about
Among them are Milan ParikCFO of Workplace Equity Platform Syndio.
“We have experienced high growth with funding from leading venture capitalists,” said Parikh. [for us] What used to be a growth-at-all-costs mentality is now more fundamental to growth and profitability. “
Meanwhile, CFOs are increasingly adopting embedded B2B solutions, as they did last year, according to a PYMNTS survey. digital transformation Boost data-driven growth this year.
“AR Transformation Solutions: Easier and Accelerating Payments from Business Customers” Organizations that update their accounts receivable (AR) and accounts payable (AP) operations with streamlined and integrated innovations are likely to gain greater visibility into cash flow management, cash flow forecasting, and working capital management. was shown.
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