Following Meta’s announcement that they plan on laying off 10,000 more employees, the technology industry remains in a state of flux, especially in its responses to the volatility of the global economy.
These trends might appear expedient in the short term but they carry greater risks in the longer-term, observes Kamales Lardi, who is global digital business transformation expert. Lardi’s view is that mass layoffs are not a sustainable strategy for the long run and that global companies need to implement real corporate responsibility practices to survive.
Lardi is recognized as a “Top 10 Global Influencers & Thought Leaders in Digital Transformation” and a “Top 50 Women in Tech Influencers 2021” (The Awards Magazine). She is an advocate for increasing diversity in the workplace because she believes that diversity of knowledge, culture, gender, sexual orientation, and experiences plays a critical role in developing workplace solutions that have a transformative impact in both business and society
Lardi is the author of the book The Human Side of Digital Business Transformation. The text has the central aim of bringing out the human side of business, particularly in the digital transformation space. The book is a thoughtful treatise on why many digital transformations fail to deliver on their initial promises.
Lardi’s analysis includes a focus on the ways that technology companies are taking short-term actions that have long-term consequences. As well as seeing this as dangerous for future success, Lardi proposes solutions, including how tech firms can implement more effective strategies for navigating a turbulent economy.
These solutions focus on the cultural side of the firm, offering a human-centric blueprint for transformation success. This includes avoiding motivating employees as the firm pushes for growth and with getting by-in in terms of different technologies and working practices.
According to Lardi’s book, mass layoffs might appear to be the easiest and quickest way to reduce costs in the short term, but they can be the most harmful in the long run. This tactic is presented an overreaction by the tech industry to the global economic situation.
Lardi finds there is a preoccupation with firms restructuring their business and operations for cost reduction (that is focusing on core business areas) together with a short term focus on merger and acquisition cost reduction exercises (which focus on reducing costs in administration, travel and hiring freeze, reducing sales costs, lowering marketing and branding spend and so on).
More riskily, Lardi finds, the companies seem to be copying each other in this tactical approach and are not considering the long-term implications of the layoffs.
Other trends that do not bode well for the future include too many firms abandoning explorative initiatives like companies that invested heavily in exploring emerging technology solutions (including the metaverse) are shifting investments away to conserve funds.
Other mistakes being made include reverting back to tactical actions, instead of staying the course of strategic direction for mid- to long-term competitive advantage.
On the flip side, Lardi’s thesis finds companies across industries are gradually increasing their IT spend by up to 3 percent this year, as they prepare to modernize, automate and digitize business operations. Considering this, there will potentially be an increase of demand on tech solutions, where tech companies may find themselves under resourced to serve the demands.
