In a continuation of what some experts are calling “the year of efficiency”, major tech players Google and Amazon have recently announced layoffs, indicating this trend will continue through 2024 as they shift resources to generative artificial intelligence (AI). Let’s turn to substantial investments in intelligence (AI).
According to a report by the news agency, analysts estimate that this year’s layoffs will be more targeted and smaller in scale than the massive job cuts seen in 2023. reuters Said.
Also read: Impact of AI on jobs: Nearly 40% of global employment could be disrupted by AI, says IMF
Companies attempting to join the AI race are seen as more likely to make strategic workforce cuts to meet the significant financial commitments being made to this transformative technology.
Last week, Google’s parent company, Alphabet, revealed plans to invest in its “biggest priorities” as it laid off nearly a thousand employees across various divisions, including the voice assistant unit and the teams responsible for the Pixel and Fitbit. Even the advertising business faced cutbacks, with reports indicating that hundreds of jobs were cut.
Amazon.com followed suit, announcing layoffs of several hundred employees across its streaming and studio operations. The Twitch live-streaming platform and Audible audiobooks unit also saw significant job cuts, according to Reuters.
The tech industry shed more than 7,500 jobs in January alone, according to tracking website Layoffs.fyi. Industry observers attribute these layoffs to intense competition in the AI field, with companies unwilling to be left behind in what many see as an AI revolution.
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Gil Luria, analyst at DA Davidson & Co., commented on the situation, and was quoted by Reuters as saying, “No company wants to be left behind by the AI revolution, and they’re all making sure they have these capabilities and They are prioritizing them, even if it is at the expense of other initiatives.”
Both Google and Amazon are making significant investments in their AI initiatives. Google recently unveiled its Gemini model, which aims to close the gap with Microsoft in the AI race. Amazon is also developing a model codenamed “Olympus” to compete with the GPT-4 model from OpenAI, the creator of ChatGPT.
However, the total size of the layoffs is expected to be much smaller than the drastic cuts seen in 2023. The tech sector saw a massive loss of 168,032 jobs last year, making it the industry with the highest number of layoffs.
“AI is bringing a lot of dynamism, but that only means that tech companies will be changing their hiring priorities,” GlobalData analyst Beatriz Valle told the news agency.
Some companies are offering substantial salaries for AI roles, reports say Match’s Hinge dating app is offering a vice president of AI position with a base salary of $398,000 (Rs 33,166,080) per year, and Amazon is offering a vice president of AI position with a base salary of $340,300. Offering a top salary of (Rs. 28,322,948). ) for Senior Manager of Applied Science and GenAI.
While spending on AI is expected to deepen among investors, analysts warn that it may take longer for most companies to realize returns from generic AI. So far, only Microsoft and chip giant Nvidia have emerged as significant beneficiaries of the AI boom.
Daniel Kum, an assistant professor of management at Columbia Business School, expressed skepticism about AI’s rapid profitability, saying, “The question is, ‘Is it different for AI this time?’ I am a pessimist, but many intelligent people believe that this time it will be much less.
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