Tech layoffs: is an ever-evolving industry that changes with each passing day. Case in point, the shift from the early days of the World Wide Web to today’s artificial intelligence (AI). This change attracts millions of young minds every year to pursue higher education in this field, hoping for employment in tech giants like Microsoft and Intel. However, with an increasing number of layoffs across the industry, computer science aspirants have become sceptical of progress and job security.
An average degree in tech-dominated fields costs $14,000 to $17,000 (Rs 12 lakh to Rs 14 lakh) in the US, as per upGrad’s recent report. Despite such high costs, students from India aspire to pursue their higher studies in the US. A user shared a personal experience on social media, citing that 58% of their peers were still finding jobs a year after graduation.
A user shared on social media that they “went to France and I have seen only 10% Indians getting any job. The rest are all in India, and some are unemployed even after 4 years of graduation.” They added that those who got a job had more than 4 years of experience in IT with proficiency in a foreign language like French.
Rising tech layoffs
The biggest players in the market, including Microsoft, have laid off more than 15,000 employees across all major teams so far this year. Top management roles were not spared either. After US Vice President JD Vance slammed Microsoft for mass layoffs while applying for H-1B visas, CEO Satya Nadella rolled out a note in response. He said that the “headcount” have remained “relatively unchanged”, and went on to call it “enigma of success in an industry that has no franchise value”.
Staff, former employees, and netizens were confused as to why he significantly downplayed the reality.
A user added on the matter and posted, “Just about two months out from the impact of the first wave of layoffs, and in the aftermath of the second wave, it’s abundantly clear that the frontline is starting to feel the effect of c-suites gutting entire orgs and somehow expecting business to continue as usual.”
“It’s funny that he sends this one, but Microsoft continues to invest heavily in AI (which will take away jobs from technology company employees), while at the same time planning new layoffs shortly 2-3 years,” remarked another.
Similarly, Intel is set to slash 24,000 jobs this year, which amounts to nearly one-fourth of its workforce. With heavy investments in AI infrastructure and expansion projects, these layoffs are viewed as nothing but cost-cutting gimmicks. What started as a 99,500 workforce now has 75,000 remaining on board.
The reason for the layoffs? Students might attribute it to just cost-cutting techniques, but artificial intelligence is truly coming for such roles. However, these data contradict the massive revenue generated by Microsoft. With stock prices touching a new high in July for the firm, Intel’s losing streak continued with a $2.9 billion loss.
What can students do?
Rising costs of study abroad visas have also become a heavy cost of having higher aspirations for an average student in India. What used to cost Rs 10,000, visa costs have risen to more than Rs 40,000. Especially in the US, the integrity fee, along with social media scrutiny, has left job-seekers stressed and confused.
While education experts observe a rising trend in artificial intelligence-based courses, students need to upskill. There is also a need for a revamp of the education system as students no longer stress about exams, but job security from AI after college.