Meta plans to lay off approximately 3,600 employees identified as low performers to raise performance standards. CEO Mark Zuckerberg confirmed the move, emphasizing extensive performance-based cuts. Affected employees will be notified by February 10. This follows previous waves of job cuts and policy shifts. Meta's shares fell after the announcement, reflecting investor concerns about the company's direction.
Meta (the parent company of Facebook, Instagram, and WhatsApp) is set to lay off approximately 3,600 employees identified as low performers, according to an internal memo first reported by Bloomberg. CEO Mark Zuckerberg confirmed the move in the memo, describing it as a strategy to “raise the bar on performance management and move out low-performers faster.”
The layoffs, affecting about 5% of Meta’s 72,400-strong workforce as of September, are part of what Zuckerberg called an “intense year” for the company. Employees in the United States will be notified of their status by February 10, with international employees to be informed later, AFP reported.
“We typically manage out people who aren’t meeting expectations over the course of a year,” Zuckerberg stated, “but now we’re going to do more extensive performance-based cuts during this cycle.” He noted that some employees who underperformed in the last period may be retained if there is optimism about their future contributions. Those laid off will receive “generous severance,” the CEO added.
The company plans to replace the outgoing employees with new hires later this year.
This is not Meta’s first wave of job cuts. The company laid off over 11,000 employees in November 2022 and cut an additional 10,000 jobs in subsequent months.
The announcement follows a series of policy shifts at Meta, including the elimination of its US fact-checking program, which had been criticised by conservatives as censorship. Zuckerberg also unveiled changes to content moderation policies, easing restrictions on divisive topics such as immigration and gender while loosening rules on hate speech.
Last week, Meta also announced reductions to its diversity, equity, and inclusion (DEI) team and scaled back related programs. The policy changes have drawn praise from Republican figures and criticism from Democrats, with some accusing Zuckerberg of aligning with conservative ideas ahead of President-elect Donald Trump’s inauguration on January 20.
Meanwhile, Zuckerberg speaking on the Joe Rogan Experience podcast last week, revealed that Meta and other leading tech companies are developing AI systems capable of handling complex coding tasks currently performed by human engineers.
He announced plans to replace midlevel software engineers with artificial intelligence by 2025, signaling a major shift in how the tech giant approaches software development.
Meta’s shares fell Tuesday following the layoff news, reflecting investor concerns over the company's broader direction.
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Meta CEO Mark Zuckerberg has raised fresh concerns about the future of developer jobs, revealing that artificial intelligence (AI) at Meta is already reaching the capabilities of mid-level software engineers. During a podcast with YouTuber Joe Rogan, Zuckerberg shared his vision for the role of AI in coding and the potential disruption it poses to the job market.In Short
# Mark Zuckerberg has raised fresh concerns about the future of developer jobs
# He revealed that AI at Meta is reaching the capabilities of mid-level software engineers
# He says AI at Meta and other tech companies could effectively replace mid-level engineers
Meta CEO Mark Zuckerberg has raised fresh concerns about the future of developer jobs, revealing that artificial intelligence (AI) at Meta is already reaching the capabilities of mid-level software engineers. During a podcast with YouTuber Joe Rogan, Zuckerberg shared his vision for the role of AI in coding and the potential disruption it poses to the job market.
He stated that by 2025, AI at Meta and other tech companies could effectively replace mid-level engineers who currently write code. This would represent a big shift in how tech companies approach software development.
"We will get to a point where all the code in our apps and the AI it generates will also be written by AI engineers instead of people engineers," he said. For context, Business Insider reported that mid-level software engineers at Meta currently earn salaries in the mid-six figures — a cost AI could significantly reduce.
Zuckerberg’s comments come at a time when other tech giants, such as Google and IBM, are also integrating AI into their operations, raising similar alarms. Sundar Pichai, CEO of Google, recently announced that over 25 per cent of all new code at Google is now generated by AI, with human engineers stepping in for final reviews. Meanwhile, IBM’s CEO, Arvind Krishna, revealed in 2023 that AI could replace up to 30 per cent of the company’s back-office roles. The trend, seen across different sectors, is sparking a debate about the future of traditional coding jobs.
Jobs of human engineers are at risk?
Zuckerberg’s latest announcement and Google's recent remark on AI completing coding tasks suggest that the role of human engineers is changing, potentially leading to fewer coding jobs in the traditional sense. Rather than spending time on routine tasks, engineers may need to focus on higher-level problem-solving and oversight of AI-generated code. As AI is more integrated into tech workflows, junior and entry-level coding positions might diminish, forcing aspiring developers to rethink their career paths.
However, it’s not all doom and gloom for engineers. AI’s growing role in code generation could actually empower coders to concentrate on more strategic and creative aspects of development. It is important to note that human engineers can't be replaced in the longer run because they can solve complex issues that AI alone cannot handle. As routine tasks are increasingly automated, the importance of these core competencies will grow, placing greater value on skills that complement AI.
This tech company has stopped hiring humans
Meta isn’t alone in its AI journey. Klarna, a leading fintech company, has also supported AI-driven automation, reducing its workforce by 20 per cent over the past year without hiring replacements. Klarna’s CEO, Sebastian Siemiatkowski, has openly stated that AI now performs nearly all tasks traditionally handled by human employees, signaling yet another shift toward an AI-dominated future.
The company, which previously had 4,500 employees, now has 3,500. This reduction happened naturally, according to the CEO, due to the 20 per cent annual attrition rate common in tech firms.
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The prospect of artificial intelligence (AI) replacing human workers is no longer a sci-fi fantasy—it’s becoming a reality. According to the World Economic Forum’s latest Future of Jobs Report, 41% of global companies are considering reducing their workforce by 2030, opting instead for AI-powered solutions.
The report highlights how advancements in AI are enabling companies to automate tasks that previously required human intervention. While this promises efficiency gains, it also raises concerns about the future of work and the human jobs at risk of becoming obsolete.
The survey, conducted among hundreds of large companies worldwide, reveals a dual approach to AI adoption. On one hand, 77% of organizations plan to reskill or upskill their employees to adapt to AI-enhanced workflows. On the other hand, 70% are looking to hire new talent specifically skilled in designing and implementing AI technologies.
Job roles that heavily rely on repetitive tasks or knowledge-based work are among the most vulnerable. Postal service clerks, executive secretaries, payroll clerks, graphic designers, and legal secretaries are cited as some of the fastest-declining roles, attributed to AI’s growing ability to perform tasks like generating original content and automating administrative processes.
The report notes this decline as evidence of AI’s “increasing capacity to complete knowledge work,” which includes creating text, images, and other outputs based on user prompts.
Despite the grim outlook for some roles, the rise of AI doesn’t mean the end of all human jobs. In fact, the report predicts a surge in demand for positions that require distinctly human skills, such as nursing and teaching. These roles rely on empathy, interpersonal interaction, and critical thinking—qualities that AI has yet to replicate effectively.
The trend underscores the need for workers to embrace adaptability and lifelong learning. Companies are prioritizing skill development to ensure employees can thrive in an AI-driven environment. Industries that successfully blend human creativity with AI efficiency may emerge as the big winners in this transition.
The report offers a clear message to businesses and workers alike: adaptability is crucial. As companies invest in upskilling programs and recruit talent with AI expertise, employees must also proactively seek opportunities to align their skills with the demands of the future workplace.
For roles like graphic design and legal support, the decline in traditional job functions could signal a pivot towards hybrid roles where AI assists rather than replaces human efforts. For instance, designers might focus on conceptualization while relying on AI to execute repetitive tasks.
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Synopsis
Global banks may cut up to 200,000 jobs in the next three to five years due to AI. Positions in the back office, middle office, and operations are most at risk. Customer services and know-your-customer roles may also change. AI tools are expected to increase productivity and revenue for banks.
Global banks are expected to cut as many as 200,000 jobs in the next three to five years as artificial intelligence encroaches on tasks currently carried out by human workers, according to Bloomberg Intelligence.
Chief information and technology officers surveyed for BI indicated that on average they expect a net 3% of their workforce to be cut, according to a report published Thursday.
Back office, middle office and operations are likely to be most at risk, Tomasz Noetzel, the BI senior analyst who wrote the report, said in a message. Customer services could see changes as bots manage client functions, while know-your-customer duties would also be vulnerable. “Any jobs involving routine, repetitive tasks are at risk,” he said. “But AI will not eliminate them fully, rather it will lead to workforce transformation.”
Nearly a quarter of the 93 respondents predict a steeper decline of between 5% and 10% of total headcount. The peer group covered by BI includes Citigroup Inc., JPMorgan Chase & Co. and Goldman Sachs Group Inc.
The findings point to far-reaching changes in the industry, feeding through to improved earnings. In 2027, banks could see pretax profits 12% to 17% higher than they would otherwise have been — adding as much as $180 billion to their combined bottom line — as AI powers an increase in productivity, according to BI. Eight in ten respondents expect generative AI to increase productivity and revenue generation by at least 5% in the next three to five years.
Banks, which have spent years modernizing their IT systems to speed up processes and shave costs in the wake of the financial crisis, have been flocking into the new generation of AI tools that could further improve productivity.
Citi said in a report in June that AI is likely to displace more jobs across the banking industry than in any other sector. About 54% of jobs across banking have a high potential to be automated, Citi said at the time.
Still, many firms have stressed that the shift will result in roles being changed by technology, rather than replaced altogether. Teresa Heitsenrether, who oversees JPMorgan’s AI efforts, said in November that the bank’s adoption of generative AI was so far augmenting jobs.
Jamie Dimon, JPMorgan’s chief executive officer, told Bloomberg Television in 2023 that AI is likely to make dramatic improvement in workers’ quality of life, even if it eliminates some positions. “Your children are going to live to 100 and not have cancer because of technology,” Dimon said at the time. “And literally they’ll probably be working three-and-a-half days a week.”
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Microsoft has announced new performance-based layoffs affecting less than 1% of its global workforce of 228,000 employees. The company’s focus on “high-performance talent” drives these actions, which span multiple departments, including its security division. While layoffs reflect ongoing tech industry trends since 2023, Microsoft’s Chairman Satya Nadella unveiled a large-scale initiative to train 500,000 individuals in rural India in artificial intelligence skills, reinforcing the company’s commitment to innovation and growth.
Microsoft has begun the year with small-scale layoffs across various departments, citing performance as the primary criterion. A spokesperson for the company told CNBC, “At Microsoft, we focus on high-performance talent. We are always working on helping people learn and grow. When people are not performing, we take appropriate action.”
The job cuts, affecting less than 1% of its 228,000 employees, are part of a broad effort to enhance performance management. Business Insider reported that these layoffs also include employees in the security division. According to sources, managers have spent months evaluating staff performance across all levels, including senior positions.
While the company is letting go of underperforming employees, many of the vacated positions may be refilled, ensuring that the overall workforce size remains relatively stable.
This is not Microsoft’s first round of layoffs in recent years. In 2023, the company cut approximately 10,000 jobs, representing about 5% of its workforce. That year, its Xbox gaming division also saw minor job reductions.
In 2024, following the $75.4 billion acquisition of Activision Blizzard, Microsoft dismissed nearly 2,000 employees from its gaming division to eliminate redundancies. Further layoffs during the summer affected its Azure cloud computing unit, initially targeting 1,500 roles, with approximately 1,000 employees ultimately laid off.
The broader tech industry has experienced significant downsizing since 2023, with companies like Google and Microsoft prioritising efficiency and performance amid economic pressures. Although it’s early in 2025, analysts expect such workforce reductions to continue as companies refine their strategies.
AI Skilling Programme for Rural India
Amidst the restructuring, Microsoft is making significant investments in artificial intelligence skill development. During a visit to New Delhi as part of the Microsoft AI Tour, Chairman and CEO Satya Nadella announced a collaborative initiative with India’s Ministry of Electronics and Information Technology (MeitY).
The programme aims to train 500,000 individuals in rural India in artificial intelligence skills. “There’s tremendous progress in AI skilling in India,” Nadella stated, emphasising the country’s vital role in the global AI landscape. This initiative is designed to empower underserved communities by equipping them with cutting-edge technological expertise.
Microsoft’s Strategic Outlook
Despite workforce adjustments, Microsoft remains focused on growth opportunities in artificial intelligence and cloud computing. The company’s partnership with OpenAI, in which it has invested over $13 billion, underscores its ambition in the AI sector. While tensions with OpenAI have emerged, Microsoft’s AI-driven products, such as the Microsoft 365 Copilot assistant, continue to develop and gain traction.
In October 2024, Chief Financial Officer Amy Hood indicated that revenue growth from Microsoft Azure, supported by AI infrastructure, is expected to accelerate in early 2025. These initiatives signal the company’s dual focus on operational efficiency and innovation.
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OpenAI's new o3 model demonstrates a significant leap in logical reasoning and code-generation capabilities, offering unprecedented productivity for coders. Industry leaders advocate for developers to adapt and leverage AI tools to enhance their skills, noting the irreplaceable value of human intuition, judgment, and innovation in software development.
OpenAI’s new o3 model arrived with little fanfare but quickly set off a surge of conversation in tech circles. Early demonstrations suggest a leap in logical reasoning and code-generation capabilities, far beyond earlier AI tools. If these benchmark results prove accurate, coders may be on the verge of a profound transformation in how they work—an evolution that, while exciting, also raises questions about job displacement and the future of software development.
Many in the industry see o3 as a productivity boon. “These tools drastically improve productivity by significantly reducing the time taken for routine tasks,” says Krishna Prasad Vyakaranam, CTO at Motivity Labs, a part of Magellanic Cloud. “Developing a feature that used to take days can now be completed in minutes. Coders should view this evolution as inevitable and akin to previous technological transitions, such as moving from books to Google and now from Google to advanced AI models.”
Among those intrigued by o3’s performance is Lalitha Duru, VP of CleverTap Labs, who calls it “definitely the biggest leap AI has taken since its inception,” citing its success on benchmarks like ARC-AGI. Though Duru highlights o3’s resource intensity—at times making it costly—she notes that technology often becomes more affordable over time and sees o3 as “a wake-up call signalling the demand for a better class of developers.”
Others emphasise that coders need not fear automation but should adapt, honing the traits that AI cannot replicate. “The capabilities dem onstrated by o3 are undoubtedly impressive and should be seen as a double-edged sword for coders and software developers,” says Atul Rai, co-founder & CEO of Staqu Technologies. He points out that o3’s strongest advantage lies in tackling repetitive tasks. “Rather than fearing obsolescence, coders should embrace this as an opportunity to evolve, leveraging AI tools to augment their capabilities.”
A similar theme emerges in discussions about the human qualities AI lacks. “AI models like o3 still can not fully replicate creative intuition, moral reasoning, and the understanding of ambiguous requirements,” says Manish Jha, chief information officer at Addverb. “Coders and software developers should welcome and adopt this change with enthusiasm and curiosity, but also remain aware of how such models may shape traditional roles.”
For Lakshminarasimman Raghavan, GVP of technology at Publicis Sapient, the continuing importance of human oversight cannot be overstated. “While coders will have powerful assistance from such models, a lot depends on the human-in-the-loop—the programmer—to ensure the code they write is part of software that actually creates value.”
Nearly all these industry experts recommend that developers confront o3’s rise by strengthening the abilities no AI can imitate. “AI can only extrapolate from existing data and patterns,” says Vyakaranam. “It cannot replicate the uniquely human capacity to think about social impact or sense what might be controversial.”
The tech industry in 2024 is witnessing a significant wave of layoffs, with nearly 150,000 workers losing their jobs across major companies like Tesla, Intel, Microsoft, and Cisco. As the market adapts to changing economic conditions, tech giants are streamlining their operations to cut costs, restructure their businesses, and align with evolving market demands, reported The Times of India.
>> Intel cuts 15,000 jobs amid toughest year in history
In a bid to save $10 billion by 2025, Intel announced a massive reduction in its workforce, cutting 15,000 jobs, or over 15 per cent of its total headcount. Facing substantial losses, the chipmaking giant is slashing R&D, marketing, and capital expenditures in a significant effort to improve its financial standing amid difficult market conditions. The restructuring aims to focus on efficiency, eliminating non-essential operations, and optimising spending.
>> Tesla’s double blow: 20,000 jobs cut
Tesla, led by CEO Elon Musk, has been executing aggressive layoffs, reducing its workforce by over 20,000 employees across multiple departments. Musk's directive to "be absolutely hard core" about job cuts led to layoffs in both junior and senior executive ranks, with the Supercharging team among the hardest hit. Bloomberg reports that Tesla's workforce reduction could reach as high as 20 per cent in total.
>> Cisco slashes 10,000 jobs as demand shifts
Networking giant Cisco laid off approximately 10,000 employees in two rounds of layoffs this year. The company made a 5 per cent workforce reduction in February, followed by another 7 per cent reduction in the second half of the year. As CEO Chuck Robbins put it, Cisco is adapting to a "more normalised demand environment," while pivoting to focus on high-growth sectors like AI and cybersecurity.
>> SAP restructures, affects 8,000 employees
SAP, a leader in enterprise software, is undergoing a major restructuring process affecting 8,000 employees, roughly 7 per cent of its workforce. The company has opted for job changes or buyouts as part of an ongoing effort to streamline operations and position itself for future growth.
>> Uber cuts 6,700 jobs as pandemic strain continues
Uber, still reeling from the effects of the Covid-19 pandemic and reduced demand in the ridesharing sector, has laid off 6,700 employees. The company has also restructured, closing offices and winding down certain business units, including self-driving labs, as part of a long-term reevaluation.
>> Dell faces second round of cuts, eliminates 6,000 jobs
Dell Technologies has enacted its second major round of layoffs in just two years, eliminating 6,000 jobs due to sluggish demand in the personal computer market. The company is also cutting additional positions in 2024 to address cost concerns amid a challenging economic environment.
>> Bell cuts 4,800 jobs in shock virtual terminations
Canadian telecommunications company Bell has laid off approximately 4,800 employees in an unexpected restructuring. The terminations were carried out via 10-minute video calls, a controversial move that has drawn criticism. Bell justifies the cuts as necessary for simplifying its organizational structure and transforming its business model.
>> Xerox slashes 3,000 jobs in restructuring
Xerox is cutting 15 per cent of its workforce, affecting around 3,000 employees as part of a larger restructuring effort. The company is focusing on simplifying its core print business and investing in IT and digital services to adapt to changing market needs.
>> Microsoft cuts 2,500 jobs in gaming division
Microsoft has restructured its gaming division, laying off 2,500 employees across Activision Blizzard, Xbox, and ZeniMax. These cuts are part of an effort to establish a more sustainable cost structure, with significant leadership changes, including the departure of key executives.
>> PayPal lays off 2,500 employees amid profit pressure
PayPal has announced a 9 per cent reduction in its workforce, laying off 2,500 employees due to rising competition and profit pressure. CEO Alex Chriss stated that the job cuts are part of a "right-sizing" strategy to position the company for future profitability.
>> Byju’s cuts 2,500 jobs amid financial struggles
Indian ed-tech giant Byju's has laid off 2,500 employees, about 5 per cent of its workforce, as part of ongoing restructuring efforts. With mounting debt, Byju’s is trying to streamline its operations and adjust to a changing market.
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Google has reportedly cut its number of top management roles by 10% in its yearslong push for efficiency. According to a report in Business Insider, CEO Sundar Pichai told employees the same in an all-hands meeting earlier this week.
Pichai reportedly said that Google had made changes over the past couple of years with the aim to "simplify the company and make it more efficient." The report quotes two employees who claim to have heard the remarks.
Quoting sources, the report added that Pichai further said that the efficiency push included a 10% reduction in managers, directors, and vice presidents. Google spokesperson told the publication that while some of those roles were changed to non-managerial positions others were eliminated entirely.
Google's 'biggest-ever' job cuts
In September 2022, Pichai said he wanted Google to be 20% more efficient, and the following January the company had a historic round of layoffs that saw 12,000 roles eliminated. In January 2023, Alphabet, parent company of Google, announced that it’s cutting around 6% of its global workforce. In an open letter published by Google and Alphabet CEO Sundar Pichai said that the company had “hired for a different economic reality” than what it’s up against today. “We’ve undertaken a rigorous review across product areas and functions to ensure that our people and roles are aligned with our highest priorities as a company,” Pichai wrote, adding that the layoffs will impact units across Alphabet, not just Google, and that all regions and product areas will be affected.
Layoff warning in January 2024
In January 2024, Google CEO Sundar Pichai sent a memo to its staff warning more layoffs are expected this year. Pichai’s memo said the company will have to make “tough choices” to meet its ambitious goal. Though Google layoffs in 2024 have not been as deep as in 2023, several divisions have seen employees go.
"Googleyness" gets new meaning
At this week's all-hands, Google CEO Pichai also said that the word "Googleyness" had become too broad. Pichai clarified what the word means for the company. The word is now said to be about being "Mission First" and being "Bold and Responsible."
The Tokyo Metropolitan Government is set to implement a four-day workweek for its employees starting in April 2025, aiming to address Japan's declining fertility rates and promote work-life balance. Governor Yuriko Koike unveiled the plan, which also includes new policies to support working parents. The initiative is part of a broader effort to help alleviate pressures on families and reduce the gender gap in the workforce.
Starting in April 2025, the Tokyo Metropolitan Government will offer its employees a new work schedule—three days off each week. This move is part of a broader strategy to address Japan’s declining birth rates by improving work-life balance, particularly for working parents. Alongside the four-day workweek, a separate policy will allow parents of elementary school children in grades one to three to reduce their working hours in exchange for a proportional salary cut.
“We will review work styles … with flexibility, ensuring no one has to give up their career due to life events such as childbirth or childcare,” said Tokyo Governor Yuriko Koike, in a policy address on Wednesday. “Now is the time for Tokyo to take the initiative to protect and enhance the lives, livelihoods, and economy of our people during these challenging times for the nation.”
Japan’s Fertility Crisis and the Need for Change
Japan is currently facing a fertility crisis, with its birth rate dropping to a record low of 1.2 children per woman, far below the replacement rate of 2.1. In 2023, the nation saw only 727,277 births, with Tokyo's birth rate sinking even further to 0.99. This demographic decline has caused significant concern, as it is expected to lead to a population reduction from 128 million in 2008 to an estimated 86.7 million by 2060.
In response, the government has introduced various policies, including incentivising childbearing and encouraging men to take paternity leave. However, experts argue that Japan's demanding work culture is a major factor driving down birth rates. Long hours and high workplace pressure often force workers, especially women, to choose between their careers and family life. This issue is compounded by Japan's substantial gender gap in labour force participation—55% of women participate in the workforce compared to 72% of men, according to World Bank data.
The Work-Life Balance Struggle
Japan's rigorous work culture, known for long hours and “karoshi” (death by overwork), has long been a barrier to balancing career and family. Women, in particular, are under pressure to choose between career advancement and motherhood, with many finding the cost of raising children, coupled with their unequal share of domestic duties, too high a price. The International Monetary Fund (IMF) reports that women in Japan perform five times more unpaid domestic work than men, and many women who had fewer children than they wanted cited the increased burden of housework as a deterrent.
A four-day workweek could provide a much-needed solution, offering families more time together and reducing the pressure on working parents. As Koike stated, the goal is to ensure that no one has to give up their career due to childbirth or childcare, with the added benefit of helping improve fertility rates.
Global Success of Shortened Workweeks
The idea of a four-day workweek has gained traction globally, with companies in Western nations beginning to experiment with compressed work schedules as a way to enhance employee well-being and attract talent seeking a better work-life balance. A 2022 global study by 4 Day Week Global involved trials in six countries, where over 90% of participating employees reported improvements in physical and mental health, reduced stress, and better work-life integration. The trials showed that men also took on a greater share of household responsibilities, spending 22% more time on childcare and 23% more on housework.
Peter Miscovich, a global future of work expert at JLL, highlighted the benefits of shorter workweeks, saying, “The upside from all of that has been less stress, less burnout, better rest, better sleep, less cost to the employee, higher levels of focus and concentration during the working hours, and in some cases, greater commitment to the organisation as a result.”
These positive results suggest that Japan’s move toward a four-day workweek could alleviate some of the burdens of working parents and potentially boost the country’s low fertility rate.
Cultural Shifts and Challenges Ahead
While the four-day workweek has proven successful in other parts of the world, its adoption in Japan presents significant cultural challenges. In Japanese corporate culture, long hours are often equated with loyalty to the company, and shifting away from this norm will require a deep cultural transformation. Despite the potential benefits of a shorter workweek, it may take time for Japanese companies to fully embrace the idea.
Tokyo’s initiative comes at a critical time for the nation, which has seen its population steadily decline since 2008. In addition to its fertility policies, Japan is pushing for measures to create a more family-friendly society. Earlier this year, Singapore introduced new regulations requiring companies to consider employee requests for flexible working arrangements, including four-day workweeks.
As Tokyo moves forward with its plans, the success of these policies could set a precedent for other cities in Japan and beyond, encouraging broader adoption of family-friendly work policies and offering new solutions to global work-life balance challenges.
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Elon Musk and Vivek Ramaswamy propose sweeping reforms for the US federal workforce, aiming to cut jobs and end remote work. Their plan, backed by President-elect Trump, seeks efficiency and cost reduction.
Elon Musk and biotech entrepreneur Vivek Ramaswamy have announced a plan to overhaul the US federal workforce, which includes job cuts and an end to remote work for federal employees. Their vision, published in The Wall Street Journal, introduces the Department of Government Efficiency (DOGE), a new initiative supported by President-elect Donald Trump. The goal is to reduce the size of the federal government, cut unnecessary spending, and lessen the influence of unelected officials in policy-making.
A key policy is mandating all federal employees to return to in-person work five days a week. Musk and Ramaswamy believe this will encourage resignations among those unwilling to comply. They argue that taxpayers should not fund the 'Covid-era privilege' of working from home. This move is part of a broader strategy to streamline government operations and reduce workforce costs.
The duo is also advocating for significant workforce reductions, labelling the federal bureaucracy as bloated. Their cost-cutting measures aim to eliminate non-essential funding, such as $535 million annually for the Corporation for Public Broadcasting and $300 million allocated to Planned Parenthood. They estimate these reforms could save over $500 billion in unauthorised expenditures.
Beyond workforce changes, Musk and Ramaswamy aim to reduce the influence of unelected officials who create regulations without congressional approval. They claim these regulations burden businesses and taxpayers. By leveraging recent Supreme Court rulings, they plan to remove rules lacking clear congressional backing. Their strategy emphasises executive action over new legislation to stimulate economic growth by easing regulatory constraints.
Musk and Ramaswamy have set July 4, 2026, as the deadline to implement their reforms, framing it as a patriotic effort to restore governance to its constitutional roots. They anticipate resistance from political and legal interests but believe a strong electoral mandate and a conservative Supreme Court majority provide an opportunity to reshape the federal government.
The proposed changes represent a big shift in federal governance, focusing on efficiency and cost reduction at the expense of remote work flexibility and current staffing levels. While supporters see the plan as necessary reform, critics may question its feasibility and potential impact on public services.
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Amazon may eliminate approximately 14,000 manager positions by early 2025, potentially saving up to $3 billion per year, according to a recent Morgan Stanley analysis. This move aligns with CEO Andy Jassy's goal to increase the ratio of individual contributors to managers by at least 15% by the end of Q1 2025. Jassy aims to increase the ratio of individual contributors to managers by at least 15% by the end of Q1 2025. These changes are part of Amazon's broader effort to "operate like the world's largest startup," with Jassy emphasising the need for "strong urgency, high ownership, fast decision-making, scrappiness and frugality, deeply-connected collaboration."
The estimate, according to Morgan Stanley, suggests that Amazon could reduce its management workforce from about 105,770 to 91,936 globally. This reduction would result in annual cost savings between $2.1 billion and $3.6 billion, representing 3% to 5% of Amazon's projected 2025 operating profit.
Amazon confirmed to Business Insider that it has "added a lot of managers" recently and believes "now is the right time" to make this change. The company stated that every team will review their structure, and it's "possible" that some roles may be eliminated.
The restructuring aims to remove unnecessary organisational layers and improve Amazon's agility by reducing bureaucratic hurdles. However, the company has not committed to specific job cuts, suggesting that the ratio change could potentially be achieved through other methods, such as reassigning managers to new roles.
Morgan Stanley's analysis assumes that 7% of Amazon's workforce holds management positions, with an estimated annual cost per manager between $200,000 and $350,000. The investment bank views this potential move as a significant opportunity for Amazon to enhance its operational efficiency.
The global IT industry is rapidly evolving, driven by technological advancements such as AI, cloud computing, and cybersecurity. As the demand for specialized skills grows, IT professionals are grappling with a widening skills gap that threatens their competitiveness in the global market.
The IT Skills Gap: A Growing Challenge for Indian IT Professionals
According to the Economic Survey 2024, only 51.25% of Indian youth are employable, leaving nearly half of the workforce ill-prepared to meet industry demands.
The India Skill Report 2024 has revealed a significant mismatch between the skills of Indian IT graduates and industry demands. The report highlights a 60%-73% demand-supply gap in critical roles such as machine learning engineers, data scientists, DevOps engineers, and data architects.
This gap shows the disconnect between academic training and the evolving needs of the IT sector. If unaddressed, this skills disparity could hamper the growth of India’s IT industry and reduce its capacity to drive economic development, limiting the country’s potential in the global technology landscape.
The Numbers Behind the Skills Gap
This skills mismatch has resulted in a staggering 3,00,000 unfilled positions across major IT companies in India. According to a Times of India article, TCS alone accounts for 80,000 open positions, representing 13% of its workforce.
Other leading IT firms are also grappling with similar challenges, with a significant number of vacancies. Assuming 10% of their workforce is affected by the skills gap, the estimated open positions are as follows:
Accenture (35,000), Infosys (35,000), Wipro (25,000), HCLTech (25,000), Capgemini (25,000), Cognizant (25,000), Tech Mahindra (15,000), LTIMindtree (8,000), Mphasis (3,000), L&T Technology Services (3,000), and Persistent Systems (3,000).
Note: This is based on the editor’s estimation, not confirmed data from the companies.
Bridging the Gap: The Need for Skill Development
Addressing this skills gap requires a focus on reskilling and upskilling initiatives to align Indian IT professionals with the evolving needs of the global industry.
Collaboration between academia, government, and industry is essential to develop more relevant educational programs.
With major companies holding thousands of open positions, filling these roles will be crucial not only for individual career growth but also for maintaining India’s leadership in the global IT sector.
Key Metrics
Unfilled Positions: 3,00,000 across major IT companies
TCS Open Positions: 80,000 (13% of workforce)
Employability: Only 51.25% of Indian youth are readily employable
Referencessights in plus
U.S. tech giant Cisco has let go of thousands of employees following its second layoff of 2024.
The technology and networking company announced in August that it would reduce its headcount by 7%, or around 5,600 employees, following an earlier layoff in February, in which the company let go of about 4,000 employees.
As TechCrunch previously reported, Cisco employees said that the company refused to say who was affected by the layoffs until September 16. Cisco did not give a reason for the month-long delay in notifying affected staff. One employee told TechCrunch at the time that Cisco’s workplace had become the “most toxic environment” they had worked in.
TechCrunch has learned that the layoffs also affect Talos Security, the company’s threat intelligence and security research unit.
Cisco said in its August statement that its second layoff of the year would allow the company to “invest in key growth opportunities and drive more efficiencies.” On the same day, Cisco published its most recent full-year earnings report, in which the company said 2024 was its “second strongest year on record,” citing close to $54 billion in annual revenue.
Cisco chief executive Chuck Robbins made close to $32 million in total executive compensation during 2023, according to the company’s filings.
When reached by email, Cisco spokesperson Lindsay Ciulla did not provide comment, or say if Cisco’s executive leadership team planned to reduce their compensation packages following the layoffs.
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A look at Cisco’s response to the current economic climate and transition trajectory leading to significant layoffs:
Cisco’s focus on subscription-based services
Cisco's $28 billion acquisition of Splunk in March signals a strategic shift towards subscription-based services. This move marked a significant shift for Cisco, traditionally known for networking equipment, as it entered the competitive cybersecurity market alongside players like Palo Alto Networks, Check Point, CrowdStrike, and Microsoft, as ET followed this development.
Cisco’s funding to AI startups
Since 2018, Cisco has been actively involved in the AI space, acquiring Accompany and CloudCherry to expand its presence in this rapidly growing technology. In 2019, the company launched the Silicon One ASIC chip, offering speeds of 25.6 Tbit/s, directly competing with Intel and Nvidia.
Cisco has allocated $1 billion to fund AI startups.
Earlier in February, Cisco partnered with Nvidia. The latter agreed to use Cisco's ethernet with its own technology that is widely used in data centers and AI applications. In June, Cisco invested in AI startups like Cohere, Mistral AI, and Scale AI. The company announced that it had made 20 acquisitions and investments related to AI in recent years.
Focus on emerging technologies
Cisco offers data center technologies like the Unified Computing System (UCS) and Nexus switches, designed to support modern data center and cloud environments. Additionally, their collaboration tools, such as WebEx and Cisco Jabber, enhance communication and productivity.
Shifting focus on cybersecurity
Since 2013, with the acquisition of Sourcefire, a network security and threat detection provider Cisco strengthened its security portfolio. Open DNS acquired in 2015, provides cloud based threat detection and prevention. CloudLock, a cloud security solutions provider for $293 million protects users and data in cloud environments. Duo Security, for $2.35 billion, provides cloud based authentication and access control.
