Social Media and Technology: Wave of Layoffs at Major Companies

The year did not start under the best auspices for employees of major companies in the social media and technology sector. This continues the cost-cutting policy that started abruptly over a year ago. For those who get their information from social media, the news is not among the best, with one issue being the withdrawal of content moderators, allowing the posting of any information, including false or hate-inciting content.

Elon Musk's Company X has reportedly laid off over 1,200 employees worldwide from its teams responsible for combating abusive online content, according to new figures published by the Australian internet regulator. The regulatory authority, eSafety, stated that "drastic reductions" and the reinstatement of thousands of banned accounts have created the "worst possible situation" for the distribution of harmful content. In recent months, the regulatory authority has focused specifically on X, stating previously that Musk's takeover coincided with an increase in "toxicity and hate" on the platform formerly known as Twitter. Using the Australian Online Safety Act, the eSafety Commission obtained a detailed list of software engineers, content moderators, and other security staff working at X. Julie Inman Grant, the Commissioner of the Australian regulatory authority and a former Twitter employee, stated that this is the first time these figures have been made public. The figures showed that 1,213 moderation specialists, including subcontractors, have left X since Elon Musk acquired it in October 2022, with 80% of them being software engineers. The withdrawal of 80% of these specialized engineers is like Volvo, renowned for its safety standards, parting ways with all of its designers and engineers," she said. It is, she said, "the worst possible situation." "You significantly decrease your defense and reintroduce recidivists to the platform." Australia has been at the forefront of the global effort to regulate social networks, forcing technology companies to explain how they address issues such as hate speech and sexual crimes against minors. In October, the eSafety Commission fined X AUD 610,500, or USD 410,000, stating that the platform failed to clearly demonstrate how it addresses the proliferation of content related to sexual assaults on minors. However, X ignored the deadline to pay the fine and proceeded to challenge it in court.

On the other hand, Amazon.com is set to lay off several hundred employees in its streaming and studio operations, the company announced in an internal note. The Prime Video and Amazon MGM Studios staff in America who will be laid off have already been informed. The online retail giant eliminated over 27,000 jobs last year as part of a wave of layoffs in the American technology sector after the industry hired heavily during the pandemic. "We have identified opportunities to reduce or discontinue investments in certain areas while increasing our investments and focusing on content and product initiatives that have the greatest impact," said Mike Hopkins, Senior Vice President of Prime Video and Amazon MGM Studios, in a note seen by Reuters. The company has aggressively spent in recent years to consolidate its media business, including the $8.5 billion deal for MGM and approximately $465 million for the first season of "The Lord of the Rings: Rings of Power" on Prime Video in 2022. Amazon is also set to launch ads on Prime Video, as well as a more expensive ad-free subscription tier in certain markets, similar to the moves by rivals Netflix and Walt Disney. After the general layoffs in 2022 and 2023, many companies are now targeting specific projects and divisions as they reprioritize resources. Amazon recently cut some jobs in its Alexa voice assistance division, while Microsoft laid off some staff at its professional network LinkedIn. Amazon's Twitch service is reportedly set to lay off 500 employees, or about 35% of its workforce. The future does not sound good for this sector, which has grown enormously in the last decade.