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<div type="image" title="Companies are embracing the unbossing trend" msid="113256383" hostid="261" sizebytes="1440779"></div> If there’s one thing both a productive team member and an underperformer hates in the corporate world, it’s being micromanaged. Now, imagine a workplace where the boss isn’t calling all the shots. Instead, everyone has a voice, and innovation flows freely. The recent corporate trend of "Unbossing" promises to do just that, empowering employees by eliminating the heavy hands of hierarchy. Sounds too good to be true? Well, globally, not just the new-age start-ups, but dozens of major corporations have embraced this trend and trimmed their middle management. <h2>Managers managing managers — no more!</h2>In January last year, <keyword id="399907" type="General" weightage="20" keywordseo="META" source="Orion">Meta</keyword> CEO Mark Zuckerberg made headlines for declaring 2023 as the “year of efficiency” and saying that he doesn’t want a management structure that's just “managers managing managers”. <div type="image" title="Meta CEO Mark Zuckerberg" agency="ANI" msid="113256403" hostid="261"></div> The same month, it was also reported by Command Line that Meta's chief product officer Chris Cox, had shared a post on the company's communication platform, Workplace, highlighting the necessity to "flatten" the organisation's structure. What followed was reports of Meta slashing middle management roles. Gradually, other companies like Shopify, Bayer, and Cisco began making headlines for showing the exit door to some of their middle managers. Loosely, unbossing is essentially cutting down the middle management roles. It cuts significant costs for the company and the new-age workforce also endorses the trend as efficient in enabling faster decision-making and innovation. However, critics argue this trend also limits the extent of mentorship that the younger generation receives while entering the workforce, which often remains an intangible value if your boss turns out to be a good mentor. Therefore, for some, it’s not about firing the middle management, but just another leadership philosophy on how leaders (and ‘bosses’) should conduct themselves. This approach advocates bosses working along with the team as a part rather than shouting instructions from the top. Whatever one’s understanding, this trend of “Unbossing” appears to be taking corporate America by storm in 2023, as evidenced by hundreds of media reports highlighting the same. Overall, most agree that the trend is restructuring organisational hierarchy to enable direct communication between employees and leaders. Cut to 2024, this trend is still prevalent and making headlines. A Bloomberg report recently said that Georges Elhedery, the incoming CEO of HSBC Holdings, might also consider plans to streamline the company's operations by reducing layers of middle management. But what’s the scenario in India? Are Indian companies ready to ditch the old-school approach and adopt this new way of working? Let’s dive in and see what the experts have to say! <h2>Layoffs to impact senior professionals: Naukri.com survey</h2>A survey by job portal Naukri.com early last year had suggested that recruiters in India expect a decline in layoffs during the first half of 2023. The survey, which included responses from 1,400 recruiters and consultants across ten industries, revealed that only 4 percent of participants anticipated layoffs to be the main focus of hiring activities within their organisations. However, the survey also highlighted that information technology roles and senior professionals were likely to be the most affected by hiring adjustments. About 20 percent of recruiters predicted that layoffs would predominantly impact senior professionals, while freshers are expected to face the least disruption from these hiring corrections. Interestingly the survey came around the same time when the Unbossing trend had begun picking up pace abroad. <h2>Layoffs at Wipro, <keyword id="18635" type="General" weightage="20" keywordseo="amazon" source="Orion">Amazon</keyword> and Collegedunia</h2>In January this year, Wipro India was in the limelight for laying off hundreds of its mid-level executives. The company reportedly culled many jobs as part of its strategy to improve margins. An ET report citing two sources familiar with the situation had said that the leading Indian IT firm reduced mid-level roles at its onsite locations. "Notices began being issued earlier this month, and hundreds of mid-level executives onsite are being let go," one source revealed. Another source added, "They have costly resources onsite in Capco, and although growth is returning, it's not sufficient. Aparna Iyer, Wipro's chief financial officer, has been tasked with delivering better margins this quarter." <div type="image" title="Amazon decided to lay-off middle managers in May" msid="113256170" hostid="261"></div>Then in May, Amazon also decided to reduce layers of middle management within its customer service divisions as part of an organisational restructuring, a Fortune report had said. The cuts impacted over 100 customer service managers in Level 5 and Level 6 middle management roles, both in call centres and virtual positions, primarily based in the U.S. and India. Not just large tech companies, startups too seem to be adapting the <keyword id="23125775" type="General" weightage="100" keywordseo="unbossing-trend-in-India" source="Orion">unbossing trend in India</keyword>. Last month, educational portal Collegedunia confirmed that around 100 employees from its Study Abroad department had been given the pink slip. A report in CNBC-TV18 had said that additional job cuts were happening across other departments as part of a broader reorganisation. The restructuring, as per the report, was aimed at automating many tasks to reduce costs. Interestingly, despite the layoffs, Collegedunia had posted 13 job openings on LinkedIn for various roles in different locations, primarily entry-level positions requiring up to two years of experience. "While Collegedunia is laying off several employees, it is also hiring fresh talent, allowing them to keep staffing levels up but at a lower cost," one employee told CNBC-TV18 at the time. Another source confirmed that while Collegedunia had been actively recruiting for some months, it has also been letting go of employees, including senior staff members with 7-8 years of experience at the company. <h2>What do experts say?</h2> <div type="image" title="Experts&amp;#39; opinion on unbossing trend" msid="113256250" hostid="261"></div>Mr. Sumit Kumar, Chief Strategy Officer at TeamLease Degree Apprenticeship, told Business Insider India, “From the perspective of HR leaders and CEOs, the strategic culling of middle management is viewed as a means to streamline operations, reduce overhead, and foster a culture of autonomy and innovation.” He also noted that even though employees can “exercise greater ownership and agility in decision-making” through this approach, there are also significant downsides. “The erosion of middle management creates a vacuum in leadership development, mentorship, and the retention of institutional knowledge, potentially leading to disengagement, a weakened talent pipeline, and misalignment with organisational objectives,” Kumar noted. Talking specifically about the Indian scenario, he said, “Implementing this trend in India would be a strategic move, positioning organisations to remain competitive in a rapidly evolving business environment. However, to fully capitalise on this approach, developing a more robust talent pipeline that integrates the ability to multitask at all levels is imperative. In today's landscape, leadership demands thinkers, strategic visionaries, and individuals who can execute with precision. We need to cultivate a new breed of leaders who are both thinkers and doers, capable of navigating complex challenges while driving innovation and growth. By building versatile, agile leaders through targeted talent development programs, Indian organisations can ensure they are well-prepared to thrive in a decentralised, high-performance environment.” RP Yadav, Chairman and Managing Director of Genius Consultants Limited, told ET recently that the Unbossing approach simplifies hierarchies and encourages open communication between frontline employees and senior management. He had added that the concept of “the oldest in the room is always the wisest of all” is no longer applicable. Meanwhile, Aditya Narayan Mishra, MD and CEO of CIEL HR Services told ET that the unbossing trend is predominantly seen in tech companies, creative roles, and startups, where swift decision-making and the unrestricted exchange of ideas are crucial. For example, the tech sector often thrives with flattened hierarchies that support rapid innovation and agility, while creative industries such as advertising and media use unbossing to cultivate a more collaborative and idea-focused environment. Thus, the unbossing trend is gaining traction beyond global companies and is finding its way into Indian organisations as well. While this approach can streamline operations, reduce costs, and enhance agility, experts caution that it also brings challenges, such as gaps in leadership development and the loss of institutional knowledge. To fully harness the benefits of unbossing, Indian companies must focus on cultivating agile leaders who can navigate complex challenges and drive growth. By building a strong talent pipeline and fostering a culture of innovation and collaboration, Indian organisations can position themselves to thrive in a more decentralised and dynamic business environment. Do you have insights or personal experience to s hare on layoffs, <keyword id="34447" type="General" weightage="20" keywordseo="workplace-trends" source="Orion">workplace trends</keyword>, or career changes? Contact us at businessinsider@timesinternet.in.

SIMPLY PUT: What’s with all “Unbossing” talks? Are Indian companies also embracing this global trend?

This as-told-to essay is based on a conversation with <keyword id="23300967" type="General" weightage="20" keywordseo="Nicholas-Whitaker" source="keywords">Nicholas Whitaker</keyword>, who worked with <keyword id="19902762" type="General" weightage="100" keywordseo="Google" source="keywords" meta.keywordsubtype="org" meta.entityname="Google" meta.hostid="261" meta.entityid="Google">Google</keyword> for nearly 13 years and got laid off in 2023. He is now running a venture of his own. It has been edited for length and clarity. I joined Google over a decade ago and it became much more than just a job. At that time, Google had approximately 40,000 employees, and the atmosphere felt very much like a startup. Teams were nimble and cooperative, offering ample opportunities for personal and professional growth. There was an unmistakable sense of optimism and potential in the air. It was my first experience in the tech industry, and I viewed that period as a significant phase in my development. I gained valuable skills and benefited from the early support and mentorship of my colleagues and leaders. Perhaps this is why the experience of being laid off hit me so hard. I remember the moment vividly. It was 3 a.m., and I received a ping on LinkedIn from a colleague asking if I was safe. Initially, I thought there had been some kind of emergency—a shooting or perhaps a natural disaster. But when I checked my personal email, I discovered the real reason for their message. I found a short, impersonal email informing me that my role had been eliminated. <div type="Article" hostid="261" msid="113637185" title="Fired from Google after 13 years of service, he used his severance to build a business around helping others with their careers" mstype="2" mssubtype="0"></div> <h2>I was laid off without a warning </h2> What shocked me the most was the lack of warning. After my colleague's message, I checked my work email only to find out that it was locked out of my phone and laptop. I then checked my personal email and there it was, a short email informing me about my layoff, providing basic instructions about returning company property and navigating unemployment. The next few months were spent sending back my laptop, badge, and other Google gear. Along the way there were multiple errors and miscommunications from the team that made it all even more uncomfortable. <div type="Article" hostid="261" msid="113619411" title="Rename home Wi-Fi, leave badge at office: Ex-Amazon employee reveals tricks used by employees to not work from office" mstype="2" mssubtype="0"></div> There was only one text message from my former manager, asking how I was doing a few days after the layoff. Beyond that, I heard nothing from my old team. It was such a brutally impersonal and inhumane process. <h2>If you have been laid off, you are not alone</h2> If you’ve been laid off, the first thing I want to say is: You’re not alone, and this moment doesn’t define you. When it first happens, it can feel incredibly personal, but <keyword id="19916567" type="General" weightage="20" keywordseo="layoffs" source="keywords">layoffs</keyword> are usually about business decisions, not your individual worth or performance. After spending over a decade at Google, I know how disorienting it can feel. But over time, I realised that this was also an opportunity to rethink what I really wanted from my career and life. Here are a few pieces of advice that helped me navigate this uncertain time: Give yourself space to process what happened: It’s okay to feel angry, sad, or uncertain. Let yourself experience those emotions, but try not to let them dictate your next move. Take the time you need to recover emotionally before jumping into something new. Reframe the situation: As hard as it sounds, a layoff can also be an opportunity to reassess what you want from your career. For me, the layoff became a catalyst for starting my own venture and reconnecting with what truly matters to me. This is a chance to explore new possibilities that may have been overshadowed by the stability of a previous job. Invest in your health: It’s easy to get caught up in the stress of finding the next thing, but make sure you’re taking care of your mental and physical health. For me, mindfulness and self-care were key to navigating this period. You can’t pour from an empty cup, so make sure you’re refilling yours. Reconnect with your network: Don’t be afraid to lean on your network for support, advice, or job leads. It can feel uncomfortable, but remember that people are often happy to help. Reach out to former colleagues, mentors, and friends, and let them know you’re in transition. Don’t rush the next step: Sometimes, the instinct is to jump into whatever comes next to avoid the discomfort of uncertainty. But if you can, take a beat and make sure your next move aligns with your values and long-term goals. Use this time to reflect on what you want from your next role or career path. Explore new avenues: If you’ve ever thought about starting your own business, freelancing, or shifting industries, now could be the perfect time to explore those ideas. That’s what I did with Changing Work Collective, and it’s led me to a more fulfilling and purpose-driven career than I ever had before. <div type="Article" hostid="261" msid="113800304" title="'Microsoft employee gets $300,000 for working 15-20 hours a week’: X user’s post goes viral" mstype="2" mssubtype="0"></div> Ultimately, a layoff is just one chapter in a much larger story. It can be a painful experience, but it’s also a chance for reinvention and growth. Stay grounded, take care of yourself, and trust that you have the resilience and skills to navigate this and come out stronger on the other side.

I was fired from Google after 13 years of service. Here's what I learnt on how to deal with layoffs

<keyword id="19902762" type="General" weightage="100" keywordseo="Google" source="keywords" meta.keywordsubtype="org" meta.entityname="Google" meta.hostid="261" meta.entityid="Google">Google</keyword> laid off thousands of employees in 2023 and many found their lives turned upside down with just an email notification. After all, when you have given your heart and soul to an organisation, it is never easy accepting the fact that you are being asked to leave at a moment’s notice. The situation becomes even more complicated when you have been with the company for more than a decade. Something similar happened with <keyword id="23300967" type="General" weightage="20" keywordseo="Nicholas-Whitaker" source="keywords">Nicholas Whitaker</keyword>, who had been working with the company since 2010 and found out about his <keyword id="20118388" type="General" weightage="20" keywordseo="layoff" source="keywords">layoff</keyword> abruptly. <h2>The 3 am email bringing bad news</h2>“My layoff experience was traumatic. I got an email at 3 am to my personal email, that I only found because a colleague pinged me on Linkedin in the DMs to ask if I was ‘Ok’ and if I was ‘safe’,” Whitaker told <keyword id="21390875" type="General" weightage="20" keywordseo="Business-Insider-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Business Insider India" meta.hostid="261" meta.entityid="Business Insider India">Business Insider India</keyword> in a conversation. He added that when his colleague enquired about his safety, he thought it was a “shooting or some natural disaster.” In other words, he didn’t even imagine that he was being laid off from Google. He then revealed that when he checked his work email, he discovered that he was locked out of his laptop and phone. He then checked his personal email and there it was, the “short and impersonal email” that told him that his role at Google was being eliminated. <h2>The layoff process was uncomfortable</h2>When Google announced large-scale layoffs last year, the company made a lot of headlines for handling them in an unprofessional manner. In March 2023, several Google employees had even written an open letter to Google CEO Sundar Pichai, asking him to deal with layoffs in a better manner. Whitaker, narrating his own experience, shared with Business Insider India that after receiving the dreadful layoff email at 3 am, he spent the next few months completing formalities to get his payments that were due. He said, “It took all of the next several months for me to mail back my laptop, badge and any gear that I had that was Google property. (I also had to) navigate unemployment, health insurance and get all of the documentation I had to submit to "self Offboard" and to receive payments that I was supposed to get.” “Along the way there were multiple errors and miscommunications from the team that made it all even more uncomfortable,” he said. Whitaker also noted a complete lack of communication and empathy from his old team at Google. “I got a single text message from my prior manager asking how I was doing a few days after I was laid off, but otherwise no one reached out to check on me or offer assistance from my old team. Overall I found the process to be brutally impersonal and inhumane,” he said. <h2>Experience at Google</h2>But was Google always “inhumane” in his experience? Not really. There were some amazing days too and Google, according to Whitaker, was a different company when he had joined. “My initial experience working at Google was like it was a completely different company. I started as a temp, contractor and then a vendor for Google back in 2010, and at the time I think it was something like 40,000 employees. It had a real startup feel to it. Teams were agile and collaborative, and there was a lot of room for growth. It may have been specific to my team and org, but it felt like you had a lot more room for experimentation and autonomy to make decisions, and failure wasn't seen as a bad thing, but a necessary part of innovation,” he said. Whitaker also said that a “class system” was there at Google, especially since he was a TVC (Temporary, Vendor and Contractor). “As a TVC you wouldn't be included in many of the activities and learning opportunities that full time employees had, and didn't get invited to extracurricular activities. There was a real bias towards culture at the time, and words like Don't be Evil, and be Googly were often used.” However, in general, he added that the atmosphere was positive and full of possibilities. “Colleagues generally were very supportive, collaborative and encouraging to work with. I was excited as this was my first time working in big tech, or Corporate America and I saw that period of time as a real coming of age for me. I learned how to be a professional at Google and appreciated all of the early guidance and support that I got from colleagues and leaders.” <h2>Helping others</h2>It has now been over a year since Whitaker was laid off. He now has his own venture and helps other people navigate their careers. Talking about what motivated him to kick-start his own venture, he said, “After 13 years in big tech, the last few years in particular being particularly difficult due to toxic teams and leaders, I didn't want to jump right back into that kind of experience again. A year before getting laid off, I had experienced a bad <keyword id="19956983" type="General" weightage="20" keywordseo="mental-health" source="keywords">mental health</keyword> crisis that was the result of workplace bullying, gaslighting and toxic leadership. "I wanted to help others avoid and recover from similar situations and create a community where people can find mutual support and coaching on how to best navigate their careers in a conscious way. My severance after working so long at Google allowed me to fund the launch of my coaching business, and eventually ‘changingwork.org’." <keyword id="23300968" type="General" weightage="20" keywordseo="Changing-Work" source="keywords">Changing Work</keyword>, Whitaker explained, is his way of addressing a deep need in corporate life — helping people rediscover their sense of purpose and alignment in their careers and finding ways to build more conscious leaders and businesses. He added, “What makes this so transformative for me personally is that it allowed me to step into a role where I could integrate all the lessons from my own career—especially the parts that were hardest for me. During my time at Google, I saw firsthand how high-pressure environments can lead to burnout, anxiety, and a disconnect from our true selves.” The recent tragic death of a young CA at Ernst &amp; Young (EY) employee in India has turned the spotlight on toxic work cultures prevalent in many high-pressure industries. Broader debates on burnout, mental health struggles, and unrealistic expectations in corporate environments in the workplace have occupied social media platforms. This incident serves as a painful reminder that companies must prioritize <keyword id="21050364" type="General" weightage="20" keywordseo="employee-well-being" source="keywords">employee well-being</keyword> and mental health to foster sustainable, humane workplaces. And makes the work that people like Whitaker are doing all the more important. “I’ve spoken publicly about how mindfulness practice, coaching and therapy literally saved my life during some of my darkest times at Google. Changing Work is the culmination of that journey. It’s not just about helping others find balance and fulfillment—it’s about creating a space where I can live those values every day,” he concludes.

Fired from Google after 13 years of service, he used his severance to build a business around helping others with their careers

<ul class="summary-list"><li>Amazon's return-to-office mandate is a move to cut head count, says Stanford economist Nicholas Bloom.</li><li>Bloom told BI the policy may harm areas like AI, where recruiting top talent is challenging.</li></ul><a target="_blank" rel="" class="" href="https://www.businessinsider.com/amazon-forced-rto-tracking-employee-office-attendance-2023-9">Amazon's</a> strict return-to-office push is an attempt to reduce head count, according to Stanford economist Nicholas Bloom.Bloom, a leading expert on flexible working, said that requiring employees to work in the office five days a week could be a "backdoor layoff" strategy — a move sometimes used by employers to reduce head count without facing the consequences of formal layoffs.He told Business Insider the move would probably succeed on that basis but would "damage areas like AI where it is hard to recruit top employees.""Amazon presumably took the view they would rather control costs by cutting head count and take the hit of technology and innovation," he said.Amazon's new policy of requiring employees to work in the office five days a week has been unpopular with workers. After the announcement, some Amazon employees took to an <a target="_blank" class="" href="https://www.businessinsider.com/amazon-workers-blast-strict-rto-mandate-five-days-week-2024-9">internal Slack channel </a>to blast the company's new policy.One Amazon worker in Germany told BI that the return-to-office mandate was a "betrayal" and that he <a target="_blank" class="" href="https://www.businessinsider.com/amazon-rto-employee-coffee-badging-office-2024-9">planned to "coffee badge"</a> rather than work in the office five days a week. Another employee told <a target="_blank" class="editor-rtfLink" href="https://fortune.com/2024/09/29/amazon-employees-angry-andy-jassy-rto-mandate/">Fortune they were "rage applying"</a> for other jobs.<h2 id="3df78d69-c645-40d8-b551-87a260dd0e81">Popular perk</h2>Hybrid work is generally very popular with employees and has been shown to <a target="_blank" class="" href="https://www.businessinsider.com/remote-work-good-for-productivity-here-to-stay-pwc-2024-9">boost retention and productivity.</a>Amazon's strict stance on full-time office work is still somewhat of an anomaly within the tech industry. According to research from Flex Index, most tech companies still have a hybrid or remote policy.Google, Meta, Microsoft, and OpenAI all still operate a hybrid work policy with some mandated office days. At Microsoft, an exec recently reassured staff it wouldn't mandate an office return unless productivity dropped."I don't hear about other tech firms following suit, and indeed the broad consensus I hear is this is a great opportunity to pick off some top talent from Amazon," Bloom said."In particular, key AI personnel at Amazon are now being aggressively approached as the leading firms in this field — places like Google, Microsoft, and OpenAI — are all hybrid. So this is an incredible opportunity for them to hire from Amazon," he added.<h2 id="f7d2a513-db6c-4826-878f-706ee944f8b4">Cost-cutting move</h2>In the <a target="_blank" class="" href="https://www.aboutamazon.com/news/company-news/ceo-andy-jassy-latest-update-on-amazon-return-to-office-manager-team-ratio">memo announcing the</a> RTO policy, Amazon CEO Andy Jassy hinted at plans to reduce managers.He said the company plans to flatten departments and ask senior leadership teams to increase the ratio of individual contributors to managers by at least 15% by the end of the first quarter of 2025.Jassy said the move was part of an effort to get the company operating "like the world's largest startup," allowing employees to "move fast" and not waste time with "unnecessary processes."A <a target="_blank" rel="" class="" href="https://www.businessinsider.com/amazon-fewer-managers-leaked-document-2024-9">copy of an internal document obtained by Business Insider</a> indicates the new plan could result in role eliminations as "organizations may identify roles that are no longer required."Bloom said Amazon may be shifting from a phase of growth into a phase of consolidation and cost cutting.He noted that Amazon is a well-organized company that analyzes everything in detail."They clearly thought about this long and hard and presumably calculated it was more cost-effective to run a head count reduction via an RTO than active layoffs. This avoids the need for severance pay. The obvious downside of the RTO strategy is a lot of top talent will quit, so it has a growth hit," he said.Representatives for Amazon did not immediately respond to a request for comment from Business Insider, made outside normal working hours.

Amazon's RTO mandate is a 'backdoor layoff' strategy, future of work expert says

<ul class="summary-list"><li>Sword Health cut a portion of physical therapists last month, the company confirmed to BI.</li><li>The startup is working to increase the number of patients its physical therapists care for using AI.</li></ul>Sword Health has made cuts to its clinical workforce as the $3 billion startup seeks to manage more patients with the help of AI, Business Insider has learned.The startup, which provides virtual care for conditions like muscle and joint pain, let go of 13 of its physical therapists treating patients in October, Sword confirmed to Business Insider.Three former employees who spoke with BI on the condition of anonymity said Sword previously had around 75 physical therapists actively caring for patients, putting the October cuts at around 17% of Sword's treatment-facing clinicians.The layoffs come as Sword seeks to enable its PTs to treat more patients using AI. Sword aims to have its physical therapists manage an average of 700 patients at any given time by the end of 2024, according to documents reviewed by BI. That's a significant jump from the caseload previously allotted to Sword's clinicians, according to three former employees, who said a high caseload at the beginning of 2024 would've been around 200 to 300 patients per therapist. These numbers could include patients who aren't actively engaged in therapy, according to the company.In a statement to BI, a Sword spokesperson said the cuts were "all performance-based decisions, made on clinical engagement data." The spokesperson said Sword currently has open positions for more than 30 physical therapists. Sword, which hit a <a target="_blank" class="" href="https://swordhealth.com/newsroom/introducing-phoenix">$3 billion valuation</a> in June after pulling in $130 million in fresh financing, has been vocal about its ambitions to scale its business using AI while keeping clinicians in the loop."What we're looking to do internally is to have AI as one master expert, but at the same time, everything gets vetted and validated by a human person," CEO Virgilio Bento <a target="_blank" class="" href="https://www.businessinsider.com/sword-health-strategy-focusing-on-ai-ahead-of-a-potential-ipo-2023-8">told BI</a> in September 2023.Three former employees said that Sword began using AI-generated messages for patient conversations in the spring. The technology allows the physical therapists to accept an AI-generated message, edit it, or reject it, before sending the message to patients, the former employees said. The AI also helps PTs prioritize the most critical patients who might need more attention, according to the company. Following its $130 million financing round, Sword announced an <a target="_blank" class="" href="https://swordhealth.com/newsroom/introducing-phoenix">expansion of its AI platform</a> with a new product that the company said can converse with patients during their virtual physical therapy sessions and give them feedback in real time.It's also hoping to land more employer contracts with an <a target="_blank" class="" href="https://swordhealth.com/newsroom/outcome-pricing">outcomes-based pricing model</a>, unveiled in September. In those contracts, Sword will get paid based on how much progress its patients make.Sword's recent technology and pricing pushes also point to an approaching IPO. Bento told BI in 2023 that <a target="_blank" class="" href="https://www.businessinsider.com/sword-health-strategy-focusing-on-ai-ahead-of-a-potential-ipo-2023-8">he'd only be interested in taking Sword public if it's profitable</a>. The startup said in June that it expects to be profitable by the end of 2024, and could go public <a target="_blank" class="" href="https://www.axios.com/pro/health-tech-deals/2024/06/04/sword-healths-road-to-ipo">as soon as the second half of 2025</a>.It's not the only digital health startup waiting at the IPO gates. Its biggest competitor, musculoskeletal startup Hinge Health, <a target="_blank" class="" href="https://www.businessinsider.com/hinge-health-s-1-morgan-stanley-ipo-2024-9">has hired banks, including Morgan Stanley, to file its S-1</a> in anticipation of a public market debut, Business Insider first reported in September.Omada Health is also expected to test the IPO waters. BI first reported in October that <a target="_blank" class="" href="https://www.businessinsider.com/exclusive-omada-health-confidentially-filed-s1-ipo-public-2024-10">Omada filed its S-1 this summer</a>.

$3 billion startup Sword Health cuts some physical therapists as it ramps up AI to treat more patients

<ul class="summary-list"><li><a target="_blank" href="https://www.businessinsider.com/mkbhd-fisker-ocean-review-marques-brownlee-video-tiktok-2024-3">Fisker</a> initiated another round of layoffs on Wednesday, multiple sources told Business Insider.</li><li>The company has gone through a series of cuts and warned it might go out of business.</li></ul>The embattled electric-vehicle startup <a target="_blank" href="https://www.businessinsider.com/fisker-tells-staff-startup-in-talks-with-4-automakers-buyout-2024-4">Fisker</a> kicked off another round of layoffs on Wednesday, four sources with knowledge of the issue told Business Insider.Fisker has made several cuts to its workforce over the past few months. In February, its CEO announced plans to cut 15% of its staff. Most recently, Fisker sent a round of layoff notices on April 29.The series of cuts are designed to eventually bring the workforce down to a skeleton crew of only "mission critical" staff, one Fisker employee with knowledge of the issue said.The total number of employees affected by this latest staff reduction wasn't clear. A spokesperson for Fisker declined to comment.Fisker has repeatedly warned over the past few months that the company may go out of business within the year. On April 29, the company sent notices to staffers, in compliance with the Worker Adjustment and Retraining Notification Act, <a target="_blank" href="https://www.businessinsider.com/fisker-sends-employees-possible-layoff-notice-2-months-2024-4">that they may be laid off</a> in two months if the company can't find a buyer or additional funding.Fisker had that month told workers in an all-hands meeting that it was in <a target="_blank" rel="" href="https://www.businessinsider.com/fisker-tells-staff-startup-in-talks-with-4-automakers-buyout-2024-4">talks with four automakers</a> about a potential buyout.Last week, Fisker's CEO told staffers in a companywide meeting that the company had reached out to other automakers in addition to the initial four. "I do hope we're closing in on something serious here in weeks rather than months," Henrik Fisker said.<a target="_blank" href="https://www.businessinsider.com/fisker-ocean-reservation-cancellations-electric-car-leaked-data-2024-3">In March, Business Insider first reported</a> that Fisker had delivered over 6,000 all-electric Fisker Ocean SUVs since the model's launch. The company said in early 2023 that it had "approximately 65,000" reservations for the vehicle ahead of its US launch that June, but the company has since faced <a target="_blank" href="https://www.businessinsider.com/mkbhd-fisker-ocean-review-marques-brownlee-video-tiktok-2024-3">negative reviews</a> and cancellations.Do you work for Fisker or have a tip? Reach out to the reporter via a non-work email at <a target="_blank" href="mailto:gkay@insider.com">gkay@insider.com</a>

Fisker cuts deeper with new wave of summer layoffs

<ul class="summary-list"><li>This post originally appeared in the Insider Today newsletter.</li></ul>Hi! Kamala Harris' VP pick is in, tapping Minnesota Gov. Tim Walz <a target="_blank" href="https://www.businessinsider.com/kamala-harris-names-tim-walz-vice-president-pick-minnesota-2024-7">as her running mate</a>. Here's how <a target="_blank" href="https://www.businessinsider.com/business-leaders-respond-kamala-harris-selects-tim-walz-vp-2024-8">the business world is reacting</a>.In today's big story, we're looking at our annual list of the most promising startups.What's on deck:<ul><li>Markets: The trade that helped upend markets <a target="_blank" href="https://markets.businessinsider.com/news/stocks/stock-market-crash-carry-trade-yen-boj-interest-rates-selloff-2024-8">can still do a lot more damage</a>.</li><li>Tech: YouTube's biggest star is <a target="_blank" href="https://www.businessinsider.com/youtuber-mrbeast-embroiled-in-controversy-involving-staff-amazon-show-2024-8">starting to collapse</a>.</li><li>Business: A weaker job market could give employers cover to <a target="_blank" href="https://www.businessinsider.com/economic-fears-job-cuts-employers-less-flexible-with-workers-2024-8">pull back on work perks we've come to enjoy</a>.</li></ul>But first, this one has some promise.If this was forwarded to you, <a target="_blank" href="https://www.businessinsider.com/subscription/newsletter/insider-today">sign up here.</a><h3 id="7fa5f018-5b05-4a37-a8dc-d3f89138bcb3">The big story</h3><h2 id="5fd547b9-ec52-41fc-8e08-4f4b27dd8097">Up-and-comers</h2><div type="image" title="Image of top startup founders" height="900" width="1200" msid="112349968" hostid="261" sizebytes="138082"></div>Remember these names.Business Insider spoke to dozens of venture capitalists to compile its <a target="_blank" href="https://www.businessinsider.com/most-promising-startups-2024-according-top-vcs-2024-8">annual list of the most promising startups</a>.We identified 85 young companies that are on the rise based on recommendations from 50 top VCs. Investors highlighted their portfolio companies and startups they had no financial ties to.Surprise! AI-focused startups made up a majority of the list. Leena Rao, who oversaw the list and leads BI's VCs and startups team, estimated about 80% of the startups included are focused on AI.But there is some nuance amid the AI frenzy. Instead of large-language models or all-purpose AI tools, these startups focus on specific sectors. From coworking spaces to weather prediction to military defense, they want to leverage AI in a niche.Outside of AI, some familiar faces remain. Healthcare and fintech are still a draw even as AI has overtaken the startup community.<div type="image" title="A sparkling cardboard robot" height="1000" width="1332" msid="112349970" hostid="261" sizebytes="49520"></div>As differentiated as AI startups try to be, the market has undeniably become oversaturated.That's par for the course in startup world. When investors are willing to throw a ton of cash at an idea, people try to replicate it.Hype builds until there are too many startups and not enough market share. Then comes consolidation. A new trend emerges. Rinse and repeat.But unlike previous trends — social-media apps of the late aughts or the 2010s' personal-finance tools — AI comes with a massive price tag. It's not cheap to run AI models. It's also not immediately clear how they can generate revenue.Historically, the tech industry doesn't mind burning cash for the sake of growth and innovation, but times are different.We're no longer in the <a target="_blank" href="https://www.businessinsider.com/zirp-end-of-cushy-big-tech-job-perks-mass-layoffs-2024-2">zero interest rate phenomenon</a>, and the biggest companies in the world are struggling to pitch investors on their AI investments being worth it.Now, cracks are starting to show in the AI ecosystem despite being less than two years into the revolution.That's not to say AI is overblown. The tech will have a massive impact on the world. But the industry will have to navigate some rough waters in the meantime.It's tough to say who will make it out alive, but these startups have a better shot than most.<h2 id="f4b54806-7f81-450c-ba32-92560d4fae9b">3 things in markets</h2><div type="image" title="stock market plunges against globe" height="1000" width="2000" msid="112349972" hostid="261" sizebytes="109976"></div><ol><li>Woah, we're halfway there! Unwinding the widely popular carry trade that relied on the Japanese yen <a target="_blank" href="https://markets.businessinsider.com/news/stocks/stock-market-crash-carry-trade-yen-boj-interest-rates-selloff-2024-8">will still take some time</a>, according to JPMorgan. Arindam Sandilya, the bank's cohead of global FX strategy, said speculative investors unwinding the trade are only "50% to 60% complete."</li><li>The AI hype bubble might be about to burst. The panicked sell-off in stocks might mark the <a target="_blank" href="https://markets.businessinsider.com/news/stocks/stock-market-crash-ai-stocks-bubble-recession-prediction-economy-outlook-2024-8">beginning of the end of the AI craze</a> among investors, market strategist Paul Dietrick said. He pointed to similarities between the recent sell-off and the dot-com crash.</li><li>Some Wall Street strategists smell blood in the water. As some investors panic, strategists at firms like UBS and Oppenheimer <a target="_blank" href="https://www.businessinsider.com/stock-market-crash-investing-strategy-volatility-economy-earnings-growth-ubs-2024-8">see a lot of upside for US stocks</a>. "Such sell-offs can offer an opportunity to 'catch babies tossed out with the bath water,'" wrote John Stoltzfus, the chief investment strategist at Oppenheimer.</li></ol><h2 id="545818b4-6561-4465-a6aa-94bbe2d1ae4f">3 things in tech</h2><div type="image" title="AI Hand holding a scale." height="690" width="1378" msid="112349963" hostid="261" sizebytes="49296"></div><ol><li>Prosecutors used an AI tool to send a man to prison for life. Now the person who created it is under investigation. Adam Mosher claimed his AI crime tool Cybercheck helped cops and prosecutors with thousands of cases. But <a target="_blank" href="https://www.businessinsider.com/ai-crime-tool-cybercheck-founder-adam-mosher-investigation-2024-8">serious questions have been raised about the program and its reliability</a>, and Mosher is now being investigated for false testimony.</li><li>YouTube's biggest star is embroiled in some beastly scandals. Jimmy Donaldson, the creator known as MrBeast, is at the center of <a target="_blank" href="https://www.businessinsider.com/youtuber-mrbeast-embroiled-in-controversy-involving-staff-amazon-show-2024-8">some major workplace controversies</a>. Participants on his reality show claim neglectful on-set conditions, and his former employee is accused of inappropriately messaging a minor.</li><li>Big Tech reform is coming, but Washington won't be the one doing it. Congress can't or won't act, so people who want Big Tech companies to change their ways <a target="_blank" href="https://www.businessinsider.com/big-tech-antitrust-courts-not-congress-2024-8">are trying to do it through the courts</a>. But it's unclear whether courtroom challenges will have any real, lasting impact.</li></ol><h2 id="9260fa45-d397-4b3c-b4f8-4bb193976216">3 things in business</h2><div type="image" title="An old, cobweb-covered briefcase with an American flag tie resting on top, surrounded by pink slips marked 'Notice of Termination" height="1000" width="2000" msid="112349975" hostid="261" sizebytes="73158"></div><ol><li>Panic! At the job market. A weaker-than-expected jobs report triggered fears of an imminent recession, a nasty wake-up call that <a target="_blank" href="https://www.businessinsider.com/jobs-report-labor-market-hiring-layoffs-quits-recession-sahm-rule-2024-8">danger is a lot closer than we thought</a>. That means employees may have to brace themselves for brutal layoffs and <a target="_blank" href="https://www.businessinsider.com/economic-fears-job-cuts-employers-less-flexible-with-workers-2024-8">kiss goodbye that four-day workweek dream</a>.</li><li>Uber is on the up. After years of losses, <a target="_blank" href="https://www.businessinsider.com/5-reasons-why-uber-is-now-profitable-2024-8">the company reported better-than-expected second-quarter earnings</a> on Tuesday. Its core business, ride sharing, is booming and its delivery bets are paying off. Plus, Uber's <a target="_blank" href="https://www.businessinsider.com/uber-ads-reaches-1-billion-annual-revenue-run-rate-2024-8">ad business hit a $1 billion annual run rate</a> — and there's still room to grow.</li><li>Elon Musk's war with advertisers just hit a turning point. <a target="_blank" href="https://www.businessinsider.com/elon-musk-x-lawsuit-advertisers-boycott-antitrust-2024-8">X is suing a group of advertisers</a>, accusing them of violating antitrust law through an advertising boycott. The platform has lost billions in ad revenue since their departure.</li></ol><h2 id="1ad7b482-3f4b-44b4-81b6-a864aa386478">In other news</h2><ul><li><a target="_blank" rel="noopener noreferrer" href="https://www.businessinsider.com/google-netflix-openai-executives-host-kamala-harris-fundraiser-2024-8">Google, Netflix, and OpenAI execs are hosting a fundraiser for Kamala Harris</a>.</li><li><a target="_blank" href="https://www.businessinsider.com/nvidia-doj-investigation-runai-big-tech-crackdown-antitrust-acquisition-competition-2024-8">Even Nvidia can't escape the government's crackdown on Big Tech</a>.</li><li><a target="_blank" href="https://www.businessinsider.com/ravin-jesuthasan-why-companies-enforce-rto-mandates-future-of-work-2024-8">A future-of-work expert explains why some companies are willing to risk losing talent to get workers back to the office</a>.</li><li><a target="_blank" href="https://www.businessinsider.com/gen-z-favorite-work-perk-having-own-desk-to-decorate-2024-7">Assigned desks are now a work perk — and Gen Zers are making themselves right at home</a>.</li><li><a target="_blank" rel="noopener" href="https://www.businessinsider.com/several-top-news-sites-shun-openai-searchgpt-search-engine-2024-8">The New York Times and other top news sites block OpenAI's new SearchGPT web crawling bot</a>.</li></ul><h2 id="9f5d80ac-3466-429f-a50a-2ffbb70c65ff">What's happening today</h2><ul><li>Fortune 500 ranking of world's largest corporations released.</li><li>First batch of Chinese G60 Starlink satellites reportedly launches today. The endeavor is in direct competition with the US's Elon Musk-backed Starlink.</li></ul>The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Jordan Parker Erb, editor, in New York. Hallam Bullock, senior editor, in London. Annie Smith, associate producer, in London. Amanda Yen, fellow, in New York.

In an oversaturated market for AI companies, these startups have the best shot at surviving

<ul class="summary-list"><li><a target="_blank" href="https://www.businessinsider.com/fisker-ocean-reservation-cancellations-electric-car-leaked-data-2024-3">Fisker</a> has filed for bankruptcy, following its warnings of potential business failure.</li><li>The company initiated a series of layoffs over the past few months.</li></ul>Fisker filed for Chapter 11 bankruptcy protections on <a target="_blank" href="https://assets.ctfassets.net/cghen8gr8e1n/6W19OiEBJDVIFVEmo4feHA/df902c5cb2b067251a300efb0b35f611/Fisker-Filing-FINAL.pdf">Monday</a>, marking a brutal blow to the startup that was once worth as much as $8 billion.Fisker, the <a target="_blank" rel="noopener noreferrer" class="c-link" href="https://www.businessinsider.com/what-happened-henrik-fisker-automotive-startup-ocean-electric-vehicle-2024-6">second failed automotive startup</a> founded by car designer Henrik Fisker, is the latest EV upstart to fail."Like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently," Fisker said.The company said that its manufacturing pause would remain in place but that it plans to file "customary motions" with the bankruptcy court to ensure it can continue to pay employee wages and its vendors.As the EV industry at large faced headwinds this year, Fisker was no exception. It encountered difficulty selling its EVs and some <a target="_blank" href="https://www.businessinsider.com/mkbhd-fisker-ocean-review-marques-brownlee-video-tiktok-2024-3">very public complaints</a> from customers as it raced to shore up more financing and potential rescue buyers. Last week, the company initiated a recall for a software-related issue that it said caused some of its vehicles to suddenly lose power.Fisker has initiated a series of layoffs over the past few months. In April it told workers it would further <a target="_blank" href="https://www.businessinsider.com/read-email-fisker-sent-staff-warning-layoffs-2024-4">reduce its workforce</a> to "preserve cash." That was after the company said in February that it planned to slash its workforce by 15%. The company brought in a chief restructuring officer who was given "sole authority" over some financial matters, including a potential sale, as part of an agreement with one of its investors.Fisker had been looking for potential buyers to stave off bankruptcy. Fisker CEO Henrik Fisker told staff in April that the startup was in <a target="_blank" href="https://www.businessinsider.com/fisker-tells-staff-startup-in-talks-with-4-automakers-buyout-2024-4">talks with four automakers</a> for a potential buyout, BI reported.EV makers <a target="_blank" rel="noopener noreferrer" class="c-link" href="https://www.reuters.com/business/autos-transportation/lordstown-motors-files-bankruptcy-sues-foxconn-2023-06-27/">Lordstown Motors</a> and <a target="_blank" rel="noopener noreferrer" class="c-link" href="https://techcrunch.com/2024/03/25/bankrupt-ev-startup-arrival-sold-its-assets-to-canoo/">Arrival</a> have also filed for bankruptcy in the past year.It's another sign of how difficult it is to run a successful EV business in the current economic environment, with industry stalwarts like <a target="_blank" rel="noopener noreferrer" class="c-link" href="https://www.businessinsider.com/tesla-elon-musk-supercharger-layoffs-concern-confuse-suppliers-2024-5">Tesla</a>, <a target="_blank" rel="noopener noreferrer" class="c-link" href="https://www.businessinsider.com/laid-off-rivian-after-surviving-earlier-layoffs-2024-2">Rivian</a>, and <a target="_blank" rel="noopener noreferrer" class="c-link" href="https://www.businessinsider.com/layoffs-sweeping-us-these-are-companies-making-cuts-2024">Lucid</a> all cutting their workforces as weakening demand squeezes the electric vehicle industry.Do you work for Fisker or have a tip? Reach out to the reporter via a non-work email at <a target="_blank" href="mailto:gkay@insider.com">gkay@businessinsider.com</a>

Embattled EV startup Fisker files for bankruptcy

<ul><li><keyword id="1165142" type="General" weightage="90" keywordseo="practo" source="Orion">Practo</keyword> has laid off 41 employees, mostly engineers, as part of the company's continuous performance management and planning process.</li><li>The company said in a statement that upholding a high bar for performance and productivity is crucial to maintaining this level of growth.</li><li>Practo, however, clarified layoffs and the business's financial performance have no connection.</li></ul>Leading digital healthcare platform Practo has laid off 41 employees, mostly engineers, as part of the company's continuous performance management and planning process, as the funding winter continues. The layoffs affected the engineering department the most, especially roles like product managers and software engineers, etc. The company said in a statement that upholding a high bar for performance and productivity is crucial to maintaining this level of growth. "Therefore, as part of our continuous performance management and planning process, we had to part ways with 41 employees in accordance with their employment contracts," a Practo spokesperson added. Practo, however, clarified layoffs and the business's financial performance have no connection. "Our revenue, margins, and profits are at an all-time high," said the company. "In the past year, we have hired over 500 talented individuals, and we plan to add another 500 'Practeons' to our team in the next 12 months, including backfill," it added. Practo has raised more than $228 million so far. In August 2020, the healthtech platform received $32 million led by Hong Kong-based <keyword id="154704" type="General" weightage="50" keywordseo="aia-group" source="Orion">AIA Group</keyword>. The platform is present in more than 20 countries, helping over 30 crore patients, by connecting them with more than one lakh verified doctor partners. SEE ALSO: <a href="https://www.businessinsider.in/tech/news/cert-in-warns-of-high-severity-vulnerabilities-in-apple-products-urges-immediate-action/articleshow/99231900.cms">CERT-In warns of high-severity vulnerabilities in Apple products, urges immediate action</a> <a href="https://www.businessinsider.in/tech/news/googles-new-features-to-simplify-travel-planning-including-a-mobile-friendly-hotel-browsing-feature-a-price-guarantee-badge-for-flights-and-more/articleshow/99235884.cms">Google’s new features to simplify travel planning, including a mobile-friendly hotel browsing feature, a price guarantee badge for flights, and more</a>

Healthtech platform Practo lays off 41 employees, mostly engineers

<ul class="summary-list"><li><keyword id="20054707" type="General" weightage="20" keywordseo="Jeff-Bezos" source="keywords">Jeff Bezos</keyword> emailed Amazon execs asking why more AI firms aren't using its <keyword id="20339843" type="General" weightage="20" keywordseo="cloud-services" source="keywords">cloud services</keyword>, CNBC reported. </li><li>Amazon's founder appears concerned about keeping pace with rivals <keyword id="19918823" type="General" weightage="20" keywordseo="OpenAI" source="keywords" meta.keywordsubtype="org" meta.entityname="OpenAI" meta.hostid="261" meta.entityid="OpenAI">OpenAI</keyword>, <keyword id="19895622" type="General" weightage="20" keywordseo="Microsoft" source="keywords" meta.keywordsubtype="org" meta.entityname="Microsoft" meta.hostid="261" meta.entityid="Microsoft">Microsoft</keyword>, and <keyword id="19902762" type="General" weightage="20" keywordseo="Google" source="keywords" meta.keywordsubtype="org" meta.entityname="Google" meta.hostid="261" meta.entityid="Google">Google</keyword>.</li></ul>It seems like <a target="_blank" href="https://www.businessinsider.com/jeff-bezos-life-career-education">Jeff Bezos</a> is concerned about <a target="_blank" href="https://www.businessinsider.com/amazon">Amazon</a> lagging behind rivals in the <keyword id="21041186" type="General" weightage="20" keywordseo="AI-race" source="keywords">AI race</keyword>. The founder and former CEO has been emailing Amazon executives <a target="_blank" href="https://www.cnbc.com/video/2024/05/14/jeff-bezos-still-very-involved-in-amazons-ai-efforts-sources-tell-cnbc.html">asking</a> why more AI firms aren't using its cloud services, according to an unnamed source who spoke to CNBC. The person reportedly said Amazon is considered the "most vulnerable" Big Tech company in the AI arena. Aware of that perception, Bezos is "very involved" in its AI efforts and has been mapping out the competitive playing field, according to CNBC. Bezos has also been seeking to make introductions for Amazon to <keyword id="20328842" type="General" weightage="20" keywordseo="AI-startups" source="keywords">AI startups</keyword>, the report says. The news comes amid a leadership shake-up at its cloud division, <keyword id="19974102" type="General" weightage="20" keywordseo="Amazon-Web-Services" source="keywords">Amazon Web Services</keyword> (AWS), after <a target="_blank" href="https://www.businessinsider.com/amazon-job-cuts-aws-roles-cloud-computing-division-aws-2024-4">hundreds of layoffs</a> in the unit last month. CEO Andy Jassy announced <a target="_blank" href="https://www.businessinsider.com/aws-amazon-adam-selipsky-ceo-steps-down-2024-5">Adam Selipsky was stepping down</a> from his role leading AWS in a <a target="_blank" href="https://www.aboutamazon.com/news/company-news/leadership-update-aws-adam-selipsky-matt-garman?tag=bisafetynet2-20">memo</a> on Tuesday, which was viewed by Business Insider and later posted to Amazon's website. OpenAI, Microsoft, and Google are considered frontrunners in the generative AI race, but Amazon has been making strategic moves in an apparent bid to remain competitive. It's <a target="_blank" href="https://www.businessinsider.com/project-theia-amazon-ai-tool-shopping-inspiration-2024-3">developing its own AI tools</a> and poured $4 billion into<a target="_blank" href="https://www.businessinsider.com/amazon-invests-4-billion-in-anthropic-2023-9"> Anthropic</a>, the company behind the AI assistant Claude. Amazon has also funded warehouse robot maker Agility Robotics and Bezos has been independently investing in AI startups recently, including Google search rival <a target="_blank" href="https://www.businessinsider.com/perplexity-raising-new-funding-generative-ai-2024">Perplexity AI</a> and humanoid robot firm <a target="_blank" href="https://www.businessinsider.com/openai-bets-big-on-humanoid-robots-with-figure-ai-2024-2">Figure AI</a>. But the rollout of <a target="_blank" href="https://www.businessinsider.com/amazon-unveils-its-ai-chatbot-amazon-q-2023-11">Amazon's AI chatbot Q</a> in November was met with negative reactions, which came as a result of a "rushed" launch, insiders <a target="_blank" href="https://www.businessinsider.com/amazon-q-chatbot-launch-rushed-flawed-anthropic-claude-ai-2024-1">previously told BI</a>. Its AI platform for businesses called Amazon Bedrock, which lets AWS customers build chatbots and generate images, was unveiled in April and launched in September. It was originally <a target="_blank" href="https://www.businessinsider.com/aws-insiders-mixed-views-ceo-adam-selipskys-tenure-daparture-2024-5">scheduled to roll out in late 2022</a>, a person familiar with the matter previously told Business Insider, although <a target="_blank" href="https://affiliate.insider.com?amazonTrackingID=bi-auto-70074-20&amp;h=e620a753a10e3e4f89c506d938c16beea9ea8067f4fed0796d416a2aaaf32d8e&amp;postID=66448a5b4c9bec8893b3e72c&amp;postSlug=jeff-bezos-amazon-worried-falling-behind-ai-race-google-openai-2024-5&amp;site=bi&amp;u=https%3A%2F%2Fwww.theinformation.com%2Farticles%2Fhow-aws-stumbled-in-ai-giving-microsoft-an-opening">Amazon had previously denied</a> that claim. Amazon didn't immediately respond to a request for comment from Business Insider, made outside normal working hours.

Jeff Bezos appears worried that Amazon is falling behind in the AI race

<ul class="summary-list"><li>Tech workers have had to learn a hard lesson: layoffs can happen at companies that are fine too.</li><li>Companies from Grammarly to Microsoft have laid people off in 2024 despite healthy finances. </li></ul><a target="_blank" href="https://www.businessinsider.com/layoffs-sweeping-us-these-are-companies-making-cuts-2024#microsoft-is-reducing-its-headcount-by-1-900-at-activision-xbox-and-zeni-max-11">This layoff season</a> has taught tech workers a tough lesson: they can still lose their jobs even if their company is doing fine.The latest example of this came last week as typing assistant startup Grammarly — last valued at $13 billion — announced it would cut around 230 roles as part of a "business restructuring."Rahul Roy-Chowdhury, who was appointed Grammarly CEO last year, made it clear that the cuts were "not a cost-cutting exercise." In a memo to staff, Roy-Chowdhury insisted that the company's "financial position is, and remains, strong."Instead, the layoffs had been conducted as a means of recalibrating resources for “the AI-enabled workplace of the future.” For Grammarly, a business that offers users writing assistance, that means adjusting to a new age of <a target="_blank" href="https://www.businessinsider.com/openai-personal-assistant-ai-age-chatgpt-2024-2">AI chatbots and personal agents</a> that could act as competitors.Layoffs, then, were an unfortunate consequence of that adjustment.“As we strengthen our focus toward driving the AI-enabled workplace and deepen our technical investments in AI, we will need a different mix of capabilities and skillsets,” Roy-Chowdhury told employees.“We also need to redesign our organization to improve the quality and speed of collaboration — and that means, among other things, restructuring roles and co-locating certain teams.”The Grammarly cuts serve as a reminder that employees aren't just at risk of losing their jobs at businesses burning through cash.Grammarly is not alone in this approach. Since the start of the year, 141 tech companies have made layoffs affecting 34,250 workers, <a target="_blank" href="https://layoffs.fyi/">according to online tracker Layoffs.fyi</a>. For context, this year's batch of layoffs still pales in comparison to last year, when almost 140,000 had lost their jobs by February.That was a time when many startups and Big Tech players were seeking to correct the excessive hiring made over the pandemic and curb spending in a high-inflation environment. Many at the time, like <a target="_blank" href="https://www.businessinsider.com/meta-reality-labs-metaverse-lost-1b-more-than-year-ago-2023-2">Meta, had hugely loss-making divisions to worry about.</a>In many instances, the smaller scale of the layoffs hitting tech companies this year reflects how much of the decision-making process this time around is more about fine-tuning. Discord CEO Jason Citron, for instance, told employees last month that a lot of its hiring in recent years — hiring that increased its headcount five times over since 2020 — had resulted in an organization that was “less efficient,” <a target="_blank" href="https://www.businessinsider.com/discord-ceo-blames-tech-layoffs-company-growth-2024-1">leading to the decision to layoff 17% of staff.</a><a target="_blank" href="https://www.theverge.com/2024/1/11/24034705/discord-layoffs-17-percent-employees">As The Verge noted</a>, the decision to correct the inefficiencies was made despite the company seeming to not be in “dire financial straits.” In other words, the company, last valued at $15 billion, grew, but at a faster pace than it needed to. That in no way means it’s in bad shape. The trend might be even clearer when looking at one of tech’s big winners of the last year.Last month, days before<a target="_blank" href="https://affiliate.insider.com?h=a49f2d5509b3f6d3a3700ae8d15291963edc11c11346ad59d39d9046b6e25d66&amp;postID=65ca1801236d0f5affe0a551&amp;postSlug=layoffs-happening-at-tech-firms-that-are-doing-just-fine-2024-2&amp;site=bi&amp;u=https%3A%2F%2Fwww.microsoft.com%2Fen-us%2Finvestor%2Fearnings%2Ffy-2024-q2%2Fpress-release-webcast"> Microsoft reported a record $62 billion in revenue</a> for the final quarter of 2023, the tech giant cut 1,900 roles from its Activision Blizzard and Xbox divisions.This is a company that’s doing anything but struggling right now, with its <a target="_blank" href="https://www.businessinsider.com/microsoft-investing-billions-into-chatgpt-creator-openai-partnership-2023-1">bet on OpenAI</a>, the launch of the AI Copilot tool and strong demand for cloud computing helping it grow. It made layoffs nonetheless.

Tech layoffs are hitting companies that are doing just fine 

<ul><li>The revised business forecast and expected margins have forced companies to redraw their business plans and align their cost structures. </li><li>The <keyword id="6357067" type="General" weightage="100" keywordseo="layoffs" source="Orion">layoffs</keyword> that are happening in cohorts, are mostly to restructure the workforce according to changing business objectives. </li><li>Basic IT roles, new initiatives roles, and anything else that automation/semi-automation can take over are at risk. </li></ul>Layoffs are in the news. The reasons are many but <keyword id="604702" type="General" weightage="20" keywordseo="employee-performance" source="Orion">employee performance</keyword>. And that is the definition of layoff too —- the <a href="https://dictionary.cambridge.org/dictionary/english/act">act</a> of <a href="https://dictionary.cambridge.org/dictionary/english/ending">ending</a> a worker's <a href="https://dictionary.cambridge.org/dictionary/english/job">job</a>, sometimes <a href="https://dictionary.cambridge.org/dictionary/english/temporarily">temporarily</a>, usually because there is not enough <a href="https://dictionary.cambridge.org/dictionary/english/work">work</a> to do. Start-ups that raised capital during the go-go days of the pandemic, are now waking up to a different reality, where the next round of capital will be scarce and the business case is looking tougher, which is why these companies have led the layoffs in India. Since layoffs are not necessarily about the performance of employees, Business India spoke to a variety of human resource experts to understand what segments are at risk. Oftentimes, companies permanently discharge workers because of economic conditions or shortage of work. In such a situation, someone is laid off not necessarily based on one’s performance but because the role is not relevant any more. Here’s what we found: <cmsannotation type="cmsannotation" annotationid="Core functions are least at risk" comment="subhead2" text="Core functions are least at risk">Core functions are least at risk</cmsannotation> As unfortunate as it may be, but the first to get axed are the support functions. Revenue-generating functions are relatively safe from such mass layoffs. “During all slowdowns, companies prioritize retaining employees who are essential to their core operations and revenue-generating activities. However, we have seen new trends during certain slowdowns, such as the Covid-19 pandemic, where certain industries and job roles may be more vulnerable due to factors such as reduced demand, temporary closures, or shifts in consumer behaviour,” says Sanjay Shetty, director, professional search &amp; selection, and strategic accounts, Randstad India, a HR consulting firm. On the other hand, he adds that currently, the layoffs which are happening in cohorts, are mostly to restructure the workforce according to the changing business objectives. <cmsannotation type="cmsannotation" annotationid="A changing reality" comment="subhead2" text="A changing reality">A changing reality</cmsannotation> “High inflation has put a significant strain on margins. We have seen Q2 and Q3 results in India where revenues were in line with market expectations but margins were lower. As companies finalize their FY24 plans, every cost item is scrutinized, and any excess is identified and trimmed,” says Mayur Taday, chief business officer, TeamLease Services, an HR firm. During Covid, most companies focused on strategy for the post-Covid world, including digitalisation and forecasting demand based on specific themes. In accordance with the demand forecast, they constructed organizational structures and costs. IT companies, in particular, have been recruiting with the expectations of better days, which have not come about. Several assumptions were not validated due to geopolitical factors, disruptions in the supply chain, and unpredictability of consumer behaviour. Following Covid, the demand-supply situation forced higher-cost hiring. “The revised business forecast and expected margins have forced companies to redraw their business plans and align their cost structures,” adds Taday. Experts agree that you are more likely to be laid off if you are in one of the following roles. Anything that automation can take over: “The likes of ChatGPT will take away <keyword id="11018" type="General" weightage="80" keywordseo="jobs" source="Orion">jobs</keyword> that demand significantly fewer variations besides being repetitive like coding, data entry etc,” says Rishi Patil, founder and director, Executive 81, a recruitment firm. So basic jobs which do not require any social or emotional intelligence are likely to be redundant. New initiative roles: “New initiatives roles are among the few types of specific job roles that are most at risk during layoffs,” says Shetty. During a good phase companies have expansion plans and recruit people for that purpose. During lean times, such jobs are at a threat of being terminated unless the company is making a specific effort to pivot into these new areas. Overpaid hiring: The demand supply situation is now tilted in the favour of supply. “All such hirings that were overpaid as a result of the then-prevailing overheated demand situation are being scrutinized,” says Taday. So, those being paid significantly above market rates, have a higher chance of losing their job. Contractual workers: According to a report by recruitment firm Spectrum Talent Management, 50% of Indian first were hiring contract employees amidst mass layoffs, since they were trying to avoid increasing their fixed costs. “Contractual workers in some cases might also feel the heat during downsizing due to the seasonal nature of their jobs,” says Shetty. Since these employment terms are for a certain period, the company may not renew it when the requirement is over. <cmsannotation type="cmsannotation" annotationid="Hiring to continue" comment="subhead2" text="Hiring to continue">Hiring to continue</cmsannotation> “We must understand that while organizations have, in some cases, adopted a strategic layoff approach, they are also hiring at a fairly reasonable pace. We expect companies in the IT, telecommunications, and services sectors to continue hiring due to increased digitization, 5G expansion, and a rebound in service sectors to pre-Covid levels of growth,” says Shetty. According to an internal survey by Randstad India, seven out of ten tech companies plan to increase their headcount in the next couple of months, suggesting that hiring in the Indian IT sector is likely to pick up as well. “Compared to the previous year, they expect a 25-30% increase in demand for tech talent in non-tech industries in 2023, driven over by the continued digitization of operations as these industries strive for greater scalability,” says Shetty. Says Saumitra Chand, career expert at Indeed, a job search portal, “We are seeing an increase in demand for talents in non-tech sectors such as healthcare, food services, construction and education. Even sectors like marketing, which was one of the earliest to see layoffs during the pandemic, has picked up steam.” To sum up, everything in the job space is evolving at a rapid pace. If one is not relevant to the new paradigm, their job is at risk. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/mfs-add-shares-of-indigo-paytm-pvr-nazara-technologies-among-others-in-february/articleshow/98630434.cms">MFs add shares of Indigo, Paytm, PVR &amp; Nazara Technologies among others in February</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/sonys-new-camera-allows-visually-impaired-to-enjoy-photography-to-the-fullest/articleshow/98628614.cms">Sony’s new camera allows visually impaired to enjoy photography to the fullest</a>

You Searched For "layoffs in startups" and got 12 results

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Tech layoffs are hitting companies that are doing just fine

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