According to tech investor Gene Munster, the tech layoffs are far from over.
Deepwater Asset Management’s managing partner believes companies have room for savings.
He also sees them cracking down on the “laptop generation” that refuses to go back to the office.
Gene Munster says big tech firms could see more layoffs as bosses prepare to penalize the “laptop generation” more.
In an interview with Insider, Munster, a managing partner at Deepwater Asset Management, said that despite a drastic spate of layoffs in recent months, companies are not done with their efforts to reduce headcounts.
The investor, who expects layoffs to be announced as soon as next-quarter’s results come in, believes both Microsoft and Google are the two frontrunners set to continue downsizing even as they experience an AI boom.
The first round of layoffs at Microsoft in January affected 10,000 workers, at Google it was around 12,000. Munster believes these cuts, which he says are “representative of what the topline is doing,” are modest compared to those made by competitors like Meta.
“I think there will be more cuts, even from those who are in a good position like Microsoft,” Munster said. “It seems like that’s still a big open opportunity for them when it comes to margins.”
Microsoft and Google did not immediately respond to Insider’s request for comment.
Munster’s comments come as tech companies are shifting their tone from growth to efficiency. This is an attempt to correct the course of the hiring campaign they embarked on during the pandemic amid an economic downturn.
The efficiency plans have led companies like Meta to target layers of middle management that represent prominent voices from Silicon Valley. These include Elon Musk, who described such employees as members of a “laptop class” who worked remotely and who, in his view, were detached from everyday operations.
Munster believes that “there’s been this generation of laptops” that “will bring more focus to some of these tech companies.” He also sees managers urging their employees to return to the office, believing it will give them “a competitive advantage.”
Remote workers are particularly concerned about layoffs. A survey of 80,000 workers released earlier this year by software company Humu found that remote workers are 32% more likely than office workers to feel anxious when they hear about layoffs.
More than 360,000 workers have lost their jobs in the tech sector since 2022, according to online tracker Layoffs.fyi. “The punch line is that technology isn’t immune and even the titans we rely on have to realize what’s going on in the economy,” Munster said.
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