As we bid goodbye to 2023, here's a summary highlighting the notable developments in Tech Giants' work.
Google Eyes 30,000 Layoffs Amid AI Efficiency Boost
Google's focus on advancing AI, particularly with projects like Gemini and Google Bard, raised speculations about potential job cuts. Reports indicated a possible layoff of 30,000 employees in the ad sales division as Google plans to restructure teams for enhanced operational efficiency through AI. Sean Downey, the head of ad sales for significant accounts in the US, hinted at this reorganization, emphasizing the transformative impact of AI on job roles. The primary target of this shift is the ad sales team, as Google explores AI's advantages for operational streamlining. Earlier in the year, Google introduced AI-powered ads, promising a conversational experience within Google Ads and simplifying campaign creation by analyzing websites and generating keywords, headlines, and visuals.
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Tata Sons Chief's 2024 Disruption Alert
Chandrasekaran, Tata Sons Chairman, emphasizes the crucial role of technology in Tata Group's strategy and anticipates challenges from global governance complexities and geopolitical tensions. Chandrasekaran stressed the importance of execution, customer satisfaction, and technology as critical priorities for 2024 despite successes in 2023. He encouraged actively shaping technology across companies and concluded optimism for India's future amid global uncertainties, drawing inspiration from the nation's achievements.
Paytm Layoff of 1,000 Employees
The parent company of Paytm, One 97 Communications, has laid off over 1,000 workers to reduce costs and streamline operations by discontinuing the UPI platform's "buy now pay later" and small-ticket consumer lending services. Paytm plans additional cost reductions to align its operations, with most cuts coming from its lending arm, which saw significant growth. While the exact number of affected employees is unclear, fintech aims to reduce staff costs by 10-15% this fiscal year. As of September, Paytm holds Rs 8,754 crore in cash balances.
60,000 Jobs Slashed in the Banking Industry
Global banks laid off around 60,000 jobs to protect profit margins in 2023, the merger of UBS and Credit Suisse resulted in 13,000 job losses, with expectations for additional cuts, and major Wall Street players, including Wells Fargo, Citigroup, and Morgan Stanley, reduced their staff due to revenue challenges. The industry grapples with economic uncertainty, and the job cuts indicate a cautious approach amid limited deal-making opportunities.
TCS Receives Notice from Labour Department
Tata Consultancy Services (TCS), accused of disruptive employee transfers without proper notice or consultation, has been served a complaint notice from the Maharashtra Labor Department affecting more than 2,000 employees and is scheduled to announce its Q3 FY 2023-24 financial results on January 11 despite not responding to an email. NITES, representing IT industry workers, reported over 300 grievances to Maharashtra's Ministry of Labour and Employment, accusing TCS of disruptive employee transfers without proper notice or consultation. According to NITES President Harpreet Singh Saluja, TCS held back salaries from employees who resisted forced transfers. Business Standard obtained an email from TCS warning of salary stoppage for employees not complying with transfer instructions. NITES also filed a complaint against TCS with the labor ministry for delayed onboarding of lateral recruits. During the pandemic recovery, TCS required a five-day office presence, followed by Infosys and Wipro, who mandated at least three days in the office for employees.
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