The massive layoffs in global technology companies may mean “relief” to the pressure that technology-based firms have in Argentina due to the retention of the most qualified human resources; even when the unions clarified that employment is not growing at the levels of years ago and that in the country there are also reductions in personnel, according to the sector’s references in a survey of Télam.
the tech giants IBM and SAP announced Thursday cuts at their 3,900 and 3,000-employee plants respectively, thus adding to the recent layoffs from firms like Google, Amazon, Microsoft and Metain a sector hit by the global economic slowdown and a transition in its businesses.
“It can even alleviate a bit of the additional pressure generated in the local labor market by the demand of foreign companies that bid for Argentine talent”Alejandro Servide
Asked about the impact in Argentina of the layoffs announced by the large global firms in the technology sector, Alejandro Servidefrom the Randstad consultancy, told Télam that “it can even alleviate a bit of the additional pressure generated in the local labor market by the demand of foreign companies that bid for Argentine talent.”
This vision is based on “Argentina has a growing deficit of technology profiles, which becomes even more critical from the acceleration of digital transformation and the greater relocation of jobs driven by the pandemic, which has broken the few barriers that still literally held back competition. global for this type of talent”.
In this regard, the head of the Computing Trade Association (ACG), Ezekiel Roughtold Télam: “I doubt very much that they hire these workers – those laid off by global companies – for local developments.”
In this sense, he explained that there is a “salary difference” since “In Argentina, wages are not regulated under a Collective Agreement and today we find companies like Globantwho pay starting salaries of more or less $40,000, while receiving huge amounts of resources from all Argentines”.
“In Argentina, salaries are not regulated under a Collective Agreement and today we find companies like Globant, which pay starting salaries of more or less $40,000, while receiving huge amounts of resources from all Argentines”Ezekiel Rough
For his part, the head of Unión Informática, Ignacio Lonziemepointed out in dialogue with Télam that today there is “a decline in the techno sector globally, and there will be a drop in all sectors and all activities due to technology and the economic issue in general.”
Tosco maintained that “companies have not been hiring staff for a long time, and more precisely, they are in a decline in hiring.”
However, he explained that in many countries, such as Argentina, “There are other sectors that require strong digitization work and there jobs can be generated again immediately”.
“The international situation presents a very good opportunity to develop and improve export schemes for Argentine companies, and the good work from the Knowledge Economy Secretariat understands it as such, integrating more SMEs into the Promotion Law,” he added. ACG leader.
(FW”The international situation presents a very good opportunity to develop and improve export schemes for Argentine companies, and the good work from the Knowledge Economy Secretariat understands it as such, integrating more SMEs into the Promotion Law”Ignacio Lonzieme(FW)
This vision of seeing an “opportunity” to develop new businesses was also expressed to Télam by the CEO of Snoop Consulting. Gustavo Garagnadays ago.
Both union leaders agreed that in Argentina there were also cuts, and that “none of the companies that were fired went through the crisis prevention procedure.”
Lonzieme also noted that “The affectation of finances in companies was very strong, especially in medium-sized ones that were based on cryptocurrencies”.
He clarified that although the sector is dynamic and “a good part of those who were laid off are already relocated,” the UI leader pointed out that employment in the sector “is not as rising as before.”
“The affectation of finances in companies was very strong, especially in medium-sized ones that were based on cryptocurrencies”Ignacio Lonzieme
“Companies lack strategic planning”; added Lonzieme, after explaining that most of the contracts are by project, which does not ensure job stability.
Servide, director of the Technologies Unit of Randstad Argentina, explained that “the wave of layoffs in technology companies in the United States has more to do with an expectation correction factor and other condiments tied to the capital market.”
He added that the possibility of working remotely “from anywhere and to any place” is seen as “very good” because it “generates more job opportunities and greater opportunities for Argentine talent.”
“The wave of layoffs in technology companies in the United States has more to do with an expectation correction factor and other condiments tied to the capital market”Alejandro Servide
But he pointed out that “the other side” is that “it can be a great threat to the competitiveness of local companies and ultimately to the competitiveness of the countrybecause it is nothing more than a “brain drain” that can worsen even more from the moment that emigration is no longer physical, but virtual, “and that makes it easier, since in some way leaving the country and the links functioned as a containment barrier”.
Global staff cuts
Since the Twitter cut announcement last November, the different firms in the electronic environment, icons of each specialty such as Alphabet (Google), Meta (Facebook) and Amazon announced layoffs.
Alphabet 12,000 employees; Amazon, 18,000; Microsoft, 10,000; while Twitter between layoffs and resignations was reduced to some “2,500 employees” globally and “several thousand contractors”, as Elon Musk published, on the social network, before the spread that the firm had lost 80% of its staff.
In the case of Twitter, the company is not required to publish the number of employees it has since it is no longer publicly traded.
Google, Amazon, Facebook (Meta) and Apple were identified during the last 10 years in the global market with the acronym GAFA, the four big ones in the technology sector.
Of these, Apple is the only one that did not make announcements of personnel cuts, and the presentation of results is expected for the first days of February.
According to figures published by the Wall Street Journal, between September 2019 and September 2022, Amazon doubled its staff, Meta grew 92%; Microsoft 53% and Alphabet 57%, while the company managed by Steve Jobs increased its workforce “only 20%.”
