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Tech companies such as Microsoft, eBay, and PayPal have recently cut thousands of jobs as they shift their focus to artificial intelligence. In total, around 34,000 jobs have been axed in the tech industry, with the trend of job cuts being attributed to the industry's pivot to AI. The layoffs have been seen as a way for companies to become leaner and more efficient. Analysts predict that more job cuts may be on the horizon, as companies continue to prioritize AI and productivity.
"The lay-offs are going to continue, and it may get worse. It's become contagious," said Brent Hill, an analyst at Jefferies.
Several companies have already implemented layoffs, including Twitch, which saw around 500 employees being axed. SAP, an enterprise software company, has also confirmed a "company-wide transformation" resulting in the loss of 8,000 jobs. The uncertainty in the tech industry has left many workers worried about potential layoffs, creating a sense of unease in the market.
Autumn Mitchell, a QA tester at Microsoft subsidiary ZeniMax, commented on the current uncertainty, 'Anybody working in tech or games right now is worried about lay-offs to some degree, either for themselves or someone they know.'