Efficiency is the talk of Silicon Valley. Companies accustomed to spending with abandon to win market share are finding themselves in the unfamiliar position of having to trim fat. And there is plenty of fat to trim
dubbed 2023 as Meta’s “year of efficiency”, corporate-speak for admitting that his social-media empire was bloated. Since November Meta has cut 21,000 jobs, or about a quarter of its workforce. Bosses of its fellow tech titans have also embraced the efficiency mantra. Alphabet , Amazon and Microsoft have collectively shed more than 50,000 jobs since October. As big tech reports its earnings this week expect more talk of “re-engineering the cost base”.
That is forcing aspiring Alphabets and Metas to follow their role models in rethinking some of the habits acquired during the years of easy money. . A good place to start is payroll. Battle-hardened founders grumble that salaries are the biggest expense for young firms. In July startup job postings on Hacker News, a news site for coders, were down by 40% compared with the same month last year . The average startup is already looking leaner. Numbers fromInsights, a data provider, show that the median number of employees at young firms has been steadily declining.
In the go-go years firms hired lots of people who did not have that much to do. Not any more. Most startups, points out Tom Tunguz, a venture capitalist, can run with smaller teams, with a negligible impact on revenues. Tech firms are, naturally, embracing artificial intelligence . An“co-pilot” on GitHub, a Microsoft-owned platform for open-source programs, improves coders’ productivity by 30%. And it is not just the geeks who benefit.
, a Swedish payments firm that experienced wild growth in the go-go years, had 2,700 employees by the time it raised $1.2bn. Databricks, a database-maker, had a staff of 1,700 at a similar stage.
Danmark Seneste Nyt, Danmark Overskrifter
Similar News:Du kan også læse nyheder, der ligner denne, som vi har indsamlet fra andre nyhedskilder.
Sunak to ease energy efficiency requirements in rented homes to not 'overburden landlords'Rishi Sunak is planning to delay energy efficiency targets and overhaul what is being required of landlords to not 'overburden' them with the costs of making a green switch, a Whitehall source told Sky News.
Læs mere »
The horror of a miscarriage is made so much worse by what happens nextThe Government has pledged to provide better support for women who experience pregnancy loss following an independent review of miscarriage care in England 🖋️ RebeccaCNReid for ipaperviews
Læs mere »
Shayne Oliver reveals his next chapter, Berlin exhibition ‘Mall of Anonymous’Former Hood by Air designer Shayne Oliver announces his next project, an exhibition-cum-retail space titled ‘Mall of Anonymous’ at Schinkel Pavillon in Berlin opening August 2023
Læs mere »
Environment minister is latest Tory to announce they'll stand down at next electionTrudy Harrison has said she won't fight the next election because boundary changes mean she will no longer live in her constituency.
Læs mere »
Disney Speedstorm Season 3 will add Minnie Mouse, Lilo & Stitch content next week | VGCDisney Speedstorm Season 3, which is inspired by Lilo & Stitch, will also introduce Minnie Mouse when it launches next week
Læs mere »