Not Just FAANG, Even AI Unicorns are on an Employee Firing Spree

Not Just FAANG, Even AI Unicorns are on an Employee Firing Spree

AI unicorns have started laying off workers in light of drastic macroeconomic conditions

After a year of hiring sprees for professionals, tech companies, large and small-scale, are pausing their hiring process. The global economic downturn continues to deepen, forcing technology companies to take drastic measures and reduce the effect of inflation. Major FAANG companies have announced lowering payroll costs, but eventually, the employment ecosystem continues to remain in a state of stand-still, with surveys revealing that even tech workers are equally worried about the current economic downturns. And with AI unicorns laying off thousands of employees, the present situation has become even more drastic. Google and Microsoft were some of the first tech companies that ordered a pause in the hiring spree, followed by Meta, Apple, and others. The situation actually got out of hand, when Google reportedly just sent a memo to its staff in July stating that the company would be "slowing down the pace of hiring for the rest of the year." The tech hiring freeze certainly did not affect the existing job offers, but since no new offers are being extended into the job market, freshers and intermediate professionals are in a huge mess. Besides, since AI unicorns have also started laying off employees, the number of solutions for tech employees is reducing rapidly!

Graphcore is all-set for the 2022 layoff season

Graphcore is one of the top AI unicorns that is proposing to cut jobs at multiple headquarters due to the deteriorating macroeconomic situation. One of the company's spokespeople claimed that the company is undergoing a consultation process, but the management is not declaring the proportion of the workforce that is likely to be cut. Instead, the company claimed that the ongoing macroeconomic backdrop is extremely challenging, which means making hard choices was the only way to sustain growth and development in the upcoming year. The headcount will be reduced on a global basis and the management is already in consultation with the staff in other headquarters.

Graphcore is basically one of the most successful European semiconductor startups in terms of the funds raised. Now, the dilemma among tech freshers is that when a successful AI unicorn plans to freeze the hiring process, it will for sure cause others to follow suit. Pursuing an AI career has become a priority for aspiring tech professionals. After the big tech layoffs started, artificial intelligence unicorns and startups became the last resort for emerging tech workers. Now, with Graphcore's blessing, probably other AI unicorns and startups with start laying off employees and implement hiring freeze.

Bottom Line

The present condition of the tech hiring landscape is quite uncertain, and not just for the plummeting economic landscape, but also due to the ongoing geopolitical and economic crises which is forcing most companies to experience their worst business cycles. Analysts are constantly running tallies as to how global companies are reacting to the ongoing inflation. It is challenge, not just for employers, but especially for the employees.

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