“This year's layoffs are typically smaller and more targeted than those from a year ago,” Lee said.
Although economic factors are the main reason for job cuts in the technology sector, Lee noted that many companies are shifting resources to focus on AI talent, citing competition in artificial intelligence as a factor. .
According to an analysis by CompTIA, which tracks employment trends in the technology industry, the number of “jobs requiring artificial intelligence or AI skills'' increased by about 2,000 jobs from December to January to 17,479.
As a result, the industry is cutting some jobs while actively hiring others. CompTIA said there were 33,727 active job openings in January, the largest month-over-month increase in 12 months.
“The bulk of the layoffs have certainly happened and companies will start to recover,” said Bart Bean, CEO of Insight Global, a staffing firm. “But it's still very uncertain.” He expects the market to stay that way for about the next two quarters “until the Fed really comes out and starts cutting rates.”
In recent months, falling inflation has fueled market expectations that the Federal Reserve will begin lowering interest rates from a 23-year high at its next meeting in March. But Fed Chairman Jerome Powell said earlier this month that the central bank still needed “more confidence” that inflation was falling “sustainably,” as the central bank kept interest rates on hold for a fourth consecutive month.
bloomberg
