Tech Sector Navigating Layoffs While Riding Generative AI Wave, According to GlobalData

The tech industry is witnessing substantial changes in 2024, including layoffs by big companies like Google, Amazon, and Meta. This trend started last year, affecting over 191,000 employees due to factors like post-COVID-19 pandemic adjustments and a focus on emerging tech like AI. Despite these challenges, there is a positive outlook for AI roles, especially those in customized generative AI solutions and machine learning operations (MLOps). This underscores the dynamic nature of the employment landscape within the technology sector, says GlobalData.

Kiran Raj, Practice Head of Disruptive Tech at GlobalData, comments: "In the context of AI jobs, this trend represents a dual narrative. While layoffs create challenges within the tech industry, there is also a growing demand for specialized AI and machine learning talent as these technologies become increasingly integrated into business operations. This demand is particularly for generative AI-powered custom applications, catering to specific market needs while enhancing privacy and security."

Saurabh Daga, Associate Project Manager of Disruptive Tech at GlobalData, adds: "The shift towards tailored generative AI tools is increasingly evident, catering to the specific market niches and user needs. This approach is particularly advantageous in sectors like healthcare, finance, and legal, enhancing efficiency and privacy."

An analysis of GlobalData's Job Analytics database underscores these trends where the job postings related to generative AI have grown by 42% from Q3 2023 to Q4 2023. Moreover, the data points towards a much lower 5% increase in overall AI-related jobs in the same period. This emphasizes the importance that enterprises are placing on transformative outcomes through generative AI.

Daga concludes: "In 2024, the tech industry stands at a crossroads of transformation and adaptation. The employment landscape is being shaped by a combination of macroeconomic and technological changes. This dynamic landscape underscores the need for workforce development, hiring, and reskilling to meet the industry's evolving demands."