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Friday 18 November 2022 5:00 am  |  Updated:  Thursday 17 November 2022 5:51 pm

Letters: Tech giants need to be flexible

By: CityAM reporter

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Elon Musk To Buy Twitter

[Re: Elon Musk fends off daily losses with jobs and ticks, Nov 6]

The latest series of lay-offs from Big Tech companies and Twitter show that the tech bubble is bursting. Many more businesses  may follow suit. The pandemic called for companies to hire tech talent in swathes as they raced to adapt. That digital race has not only slowed, but been stalled by a recession putting the brakes on tech spending. This means most businesses no longer have the capital to retain all the employees they brought on board.

It’s worrying that large businesses like Amazon have been so short-sighted with their hiring, particularly of tech staff. Hiring and firing is not only expensive, but can damage morale for remaining employees and carry reputational damage for future recruitment. To avoid making the same mistakes, businesses have to be less rigid with how they manage their workforce. Certainly, an over-reliance on teams exclusively made up of permanent employees is a recipe for disaster.

That’s not to say that having permanent, retained staff is not important for business continuity. But it should be supplemented by an on-demand workforce made up freelancers, that can be scaled up and down as required and in line with market disruption, without needing to cut ties with valuable employees. Until businesses find more flexible ways to engage talent, they will always be vulnerable to economic headwinds and risk needing to make lay-offs.

Callum Adamson

Distributed

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