Freshworks cuts workforce despite profit: In a surprising move, California-based tech firm Freshworks has announced plans to lay off 13% of its global workforce, impacting roughly 660 employees, as part of its operational restructuring strategy. Well, this comes despite surging profit. Media reports suggest that Freshworks sees this move as essential to streamline operations and enhance efficiency amid a rapidly evolving tech landscape.
Although Freshworks raised its revenue and profit forecasts following impressive third-quarter results, it anticipates restructuring charges of $11 million to $13 million in the fourth quarter.
Profits climb, jobs fall: Tech giants cut jobs despite revenue growth
Freshworks isn't alone in this approach. Major tech players like Google, Amazon, Intel, and Apple have also enacted job cuts this year despite reporting substantial earnings. Google began 2024 with layoffs in multiple regions, including the U.S., while Amazon’s Prime Video department also experienced cuts. Cisco, pivoting its focus toward AI and cybersecurity, recently announced a layoff of 6,000 employees, and Intel let go of 15,000 workers as part of a cost-cutting initiative.
Even Apple, after reporting a revenue of $85.8 billion in its third quarter, has reduced roles within its services division to double down on AI investments. The rise of artificial intelligence, economic recalibrations, and an increased emphasis on cost-efficiency are reshaping tech companies’ workforce strategies, challenging employees to continuously adapt.
What are the driving factors behind tech job cuts despite profitability?
Despite a surge in profits, tech giants are laying off employees due to three primary factors- the rise of AI, concerns about a potential recession, and rising inflation and interest rates.
As AI becomes central to tech operations, companies are automating roles, with firms like IBM cutting thousands of positions and freezing hiring for jobs AI can replace. The Economic Report of the President warns that 10% of U.S. jobs could be at risk from AI, prompting tech firms to streamline their workforces. Economic uncertainty, fueled by a weak housing market and political instability, has sparked recession fears, driving companies to cut costs, with layoffs helping preserve cash flow. Additionally, rising borrowing costs from the Federal Reserve's rate hikes are straining firms that previously relied on cheap capital, leading them to prioritise debt repayment over expansion and further reducing staff to control expenses.
5 Niche Skills Budding Techies Need to Enhance Efficiency
For aspiring tech professionals, these frequent restructuring announcements serve as a reminder that job security in tech is far from guaranteed. In this evolving market, staying relevant goes beyond foundational technical skills.
Here’s a look at five niche skills budding techies should consider adding to their CVs to stand out, optimise efficiency and increase their value within the industry.
AI and Machine Learning Integration
With the rapid adoption of artificial intelligence across sectors, understanding how to integrate AI into business operations is a crucial skill. Professionals who can enhance products with machine learning capabilities or optimise processes through AI-driven tools can offer invaluable insights to employers looking to stay competitive. Familiarise yourself with tools like TensorFlow and PyTorch, and consider certifications in AI ethics, machine learning models, and deployment strategies.
Cloud Security Specialisation
As more businesses shift to cloud infrastructures, the demand for cloud security experts is soaring. Unlike traditional IT security, cloud security requires specialised knowledge in protecting data, ensuring compliance, and maintaining secure connections across remote servers. Gaining expertise in cloud security protocols on platforms like AWS, Google Cloud, and Asure, as well as understanding compliance regulations such as GDPR and HIPAA, can give candidates a competitive edge.
DevOps Automation
DevOps remains crucial for agile development and rapid software deployment, but now, the emphasis is on automation within DevOps to streamline workflows and increase productivity. Skills in CI/CD (Continuous Integration/Continuous Deployment) pipelines, automation frameworks, and containerisation (e.g., Docker, Kubernetes) make tech professionals indispensable. This expertise can help companies reduce operational costs while accelerating product release cycles, a highly valued combination amid widespread budget cuts.
Data engineering with big data focus
The shift toward data-driven decision-making means organisations increasingly rely on robust data infrastructures. Data engineering, especially with a focus on handling and processing big data, is a sought-after skill. Knowledge in managing data pipelines, using ETL (Extract, Transform, Load) tools, and platforms such as Apache Kafka, Hadoop, and Spark is in high demand. Companies with massive data streams benefit from professionals who can help transform raw data into actionable insights.
User Experience (UX) Analytics and Optimisation
For companies like Freshworks that serve extensive client bases, a seamless user experience is crucial. UX analytics is evolving beyond basic design skills to include a focus on analysing and enhancing digital interactions based on user behavior. Skills in using UX research tools like Hotjar, Google Analytics, and usability testing methods allow techies to contribute directly to improving product satisfaction rates, a priority in customer-centric markets.
Although Freshworks raised its revenue and profit forecasts following impressive third-quarter results, it anticipates restructuring charges of $11 million to $13 million in the fourth quarter.
Profits climb, jobs fall: Tech giants cut jobs despite revenue growth
Freshworks isn't alone in this approach. Major tech players like Google, Amazon, Intel, and Apple have also enacted job cuts this year despite reporting substantial earnings. Google began 2024 with layoffs in multiple regions, including the U.S., while Amazon’s Prime Video department also experienced cuts. Cisco, pivoting its focus toward AI and cybersecurity, recently announced a layoff of 6,000 employees, and Intel let go of 15,000 workers as part of a cost-cutting initiative.
Even Apple, after reporting a revenue of $85.8 billion in its third quarter, has reduced roles within its services division to double down on AI investments. The rise of artificial intelligence, economic recalibrations, and an increased emphasis on cost-efficiency are reshaping tech companies’ workforce strategies, challenging employees to continuously adapt.
What are the driving factors behind tech job cuts despite profitability?
Despite a surge in profits, tech giants are laying off employees due to three primary factors- the rise of AI, concerns about a potential recession, and rising inflation and interest rates.
As AI becomes central to tech operations, companies are automating roles, with firms like IBM cutting thousands of positions and freezing hiring for jobs AI can replace. The Economic Report of the President warns that 10% of U.S. jobs could be at risk from AI, prompting tech firms to streamline their workforces. Economic uncertainty, fueled by a weak housing market and political instability, has sparked recession fears, driving companies to cut costs, with layoffs helping preserve cash flow. Additionally, rising borrowing costs from the Federal Reserve's rate hikes are straining firms that previously relied on cheap capital, leading them to prioritise debt repayment over expansion and further reducing staff to control expenses.
5 Niche Skills Budding Techies Need to Enhance Efficiency
For aspiring tech professionals, these frequent restructuring announcements serve as a reminder that job security in tech is far from guaranteed. In this evolving market, staying relevant goes beyond foundational technical skills.
Here’s a look at five niche skills budding techies should consider adding to their CVs to stand out, optimise efficiency and increase their value within the industry.
AI and Machine Learning Integration
With the rapid adoption of artificial intelligence across sectors, understanding how to integrate AI into business operations is a crucial skill. Professionals who can enhance products with machine learning capabilities or optimise processes through AI-driven tools can offer invaluable insights to employers looking to stay competitive. Familiarise yourself with tools like TensorFlow and PyTorch, and consider certifications in AI ethics, machine learning models, and deployment strategies.
Cloud Security Specialisation
As more businesses shift to cloud infrastructures, the demand for cloud security experts is soaring. Unlike traditional IT security, cloud security requires specialised knowledge in protecting data, ensuring compliance, and maintaining secure connections across remote servers. Gaining expertise in cloud security protocols on platforms like AWS, Google Cloud, and Asure, as well as understanding compliance regulations such as GDPR and HIPAA, can give candidates a competitive edge.
DevOps Automation
DevOps remains crucial for agile development and rapid software deployment, but now, the emphasis is on automation within DevOps to streamline workflows and increase productivity. Skills in CI/CD (Continuous Integration/Continuous Deployment) pipelines, automation frameworks, and containerisation (e.g., Docker, Kubernetes) make tech professionals indispensable. This expertise can help companies reduce operational costs while accelerating product release cycles, a highly valued combination amid widespread budget cuts.
Data engineering with big data focus
The shift toward data-driven decision-making means organisations increasingly rely on robust data infrastructures. Data engineering, especially with a focus on handling and processing big data, is a sought-after skill. Knowledge in managing data pipelines, using ETL (Extract, Transform, Load) tools, and platforms such as Apache Kafka, Hadoop, and Spark is in high demand. Companies with massive data streams benefit from professionals who can help transform raw data into actionable insights.
User Experience (UX) Analytics and Optimisation
For companies like Freshworks that serve extensive client bases, a seamless user experience is crucial. UX analytics is evolving beyond basic design skills to include a focus on analysing and enhancing digital interactions based on user behavior. Skills in using UX research tools like Hotjar, Google Analytics, and usability testing methods allow techies to contribute directly to improving product satisfaction rates, a priority in customer-centric markets.
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