Layoffs in the tech industry have been making headlines over the past few months, leading many to wonder if the end of the tech bubble is upon us. Ajax Vice President of HR and former Microsoft executive, Matthew Perch, is here to set the record straight. He explains that the layoffs seen in the tech industry are not the sign of a coming collapse, but rather the result of an unexpected boom caused by the COVID-19 pandemic.
Perch explains that tech companies hired heavily during the pandemic, expecting an unpredictable and long-lasting surge in demand. Consequently, when the world opened up, there was an oversupply of employees, leading companies to re-examine their business models and to trim their workforce. For example, Amazon hired 800,000 people in 2019, and ended 2021 with 1.6 million employees. As the rebound occurred and demand decreased, Amazon too had to re-adjust.
Perch draws a parallel between the 2008 dot com bubble and what he calls the “irrational exuberance” that COVID marked. He states that while the aftermath has revealed changes to be less dramatic than what was initially expected, the opportunity presented itself to companies to take stock of outdated projects and employees. This has been necessary for many tech companies to remain abreast of the ever-evolving and highly dynamic industry.
Although this is a trying moment for laidoff employees, Perch retains a residual optimism. The world of AI, quantum computing, and advanced virtual reality offer a range of opportunities, awaiting those with the stamina and the skill to take advantage. The current market is only a stepping stone to a greater and brighter future in technology.
Matthew Perch was formerly Vice President of HR at Microsoft, priorly specializing in hiring, talent acquisition and HR operations optimisation. He was known to have a warm nature and exceptional knowledge in the field. His trademark enthusiasm, which helped Microsoft employees feel appreciated and valued, continues to guide him in his work today.
Microsoft, while an iconic software company, also holds a reputation for innovation and progress in the tech industry. They are emblematic of the acceleration in the emergence of new technologies, which excites inspiration and progress in technology today. Microsoft’s mission is to empower humanity through technology, a mission their contributions to the tech industry since their conception in 1975 demonstrate.
