How Greed Is Slashing The Tech Job Market

Economy Media

105,269 views • 4 days ago

Video Summary

Corporate greed has reached unprecedented levels, manifesting in an ever-widening wage gap between CEOs and average employees. In 2022, CEOs earned 344 times more than typical workers, with top CEOs making upwards of $24 million annually. This trend is exacerbated by companies using layoffs and AI as pretexts for workforce reduction, while simultaneously increasing profits. For instance, tech companies have cut over 800,000 jobs since 2019, yet their profits have surged by an average of 40%. This corporate behavior is driving structural inequality, shifting the tech sector from an engine of prosperity to one that resembles the financial world more than innovation. A striking example is BlackBerry, which prioritized cost reduction and shareholder value over reinvestment in innovation, leading to its downfall. Even tech giants like Google have reduced employee perks following massive layoffs, revealing these benefits were primarily recruitment tools.

The current landscape shows companies prioritizing margin optimization and payroll reduction over genuine operational improvements. Meta Platforms, for example, eliminated 14,000 jobs between 2022 and 2023, citing AI for efficiency, yet their net profits increased by over 20%, indicating savings were primarily from salaries. Similarly, Google cut 6% of its workforce in 2023 while reporting a 9% revenue increase. This dynamic has led to a situation where technology, once a promise of opportunity, is now used to justify job elimination. Public opinion reflects widespread concern, with 87% of Americans viewing the growing disparity as a significant problem.

Short Highlights

CEO pay has exploded, reaching 344 times that of typical workers in 2022, with top CEOs earning over $24 million annually.
Tech companies have cut over 800,000 jobs since 2019 while profits grew by an average of 40%.
BlackBerry's decline is a prime example of prioritizing cost reduction and shareholder value over innovation, leading to massive layoffs and market share loss.
Tech giants like Google and Meta have reduced employee perks and cut thousands of jobs, using AI as a justification while profits increase.
87% of Americans believe the growing wage disparity between executives and workers is a significant problem.

Key Details

The Exploding Wage Gap: CEO vs. Worker Pay [00:00]

A 2025 study revealed a tech CEO could earn in one year what an average employee makes in three centuries.
In 1965, CEOs earned 21 times the average worker's salary; by 2022, this figure had ballooned to 344 times.
The top 350 CEOs in the US earned over $24 million on average in 2020.
At a current salary, it would take over 281 years to earn what some CEOs make in one year.

"The wage gap between CEOs and workers has become enormous."

Tech Layoffs Amidst Soaring Profits [00:44]

Since 2019, tech companies have cut over 800,000 jobs worldwide.
Simultaneously, tech company profits have grown by an average of 40%.
Nvidia, an AI titan, reported revenue soaring 56% year-over-year, despite media reports blaming AI for mass layoffs.
Studies suggest AI may be an excuse for companies to reduce their workforce without damaging their image.

"This has led to concern even among politicians who warn about the possible effects that corporate greed could have on the labor market and the economy."

BlackBerry's Downfall: Greed Over Innovation [01:36]

BlackBerry, once dominant with over 40% US market share in 2010, prioritized reducing operating costs and increasing shareholder value over reinvesting in innovation.
Starting in 2011, the company initiated massive layoffs, cutting nearly 5,000 jobs in one year, and later planning to lay off 4,500 more employees (40% of its workforce).
These "efficiency" measures weakened the company's ability to innovate, losing ground to Apple and Google, which were investing heavily in R&D.
Between 2012 and 2013, BlackBerry's sales dropped over 50%, and market share fell below 1%.

"This decision became a prime example of how corporate greed, disguised as optimization, can destroy a brand that once symbolized technological excellence."

Tech Perks: Recruitment Tools, Not Loyalty [03:10]

Lavish tech perks, once a draw for many, are being questioned due to mass layoffs over the past 3 years.
These benefits were often seen as tools to attract and retain talent rather than genuine gestures of generosity.
Google, known for perks like free meals, gyms, and massages, began cutting many of these after announcing over 12,000 layoffs in 2023.
Free lunches, reduced cafeteria access, restricted travel, and paused internal celebrations were cut under the guise of operational efficiency.

"This change revealed that many of the so-called perks presented for years as part of an innovative and human corporate culture were in fact strategies for recruitment and retention."

AI as a Pretext for Workforce Reduction [04:48]

The rise of artificial intelligence has provided a convenient excuse for companies to reduce their workforce without tarnishing their image.
Paycom terminated over 500 employees by text message, replacing roles with AI.
While AI is cited, actual operational savings in areas like energy costs or office rents are minimal compared to immediate payroll and benefits reductions.
Meta Platforms eliminated around 14,000 jobs (over 10% of its workforce) between 2022-2023, claiming AI for efficiency, but experts noted marginal savings in tech infrastructure versus significant salary savings.

"The company claimed that AI would improve efficiency in its products and operations. But experts noted that the real savings in technological infrastructure were marginal compared to the money saved on salaries."

Growing Inequality and Public Discontent [06:17]

Google cut approximately 6% of its workforce in 2023 while reporting a 9% revenue increase ($37 billion).
Rick Smith, CEO of Axon Enterprises, received $165 million in total compensation in 2024, over 1,000 times his employees' average salary.
Andy Jasse, CEO of Amazon, received $40 million in 2024, more than 1,000 times the average Amazon employee's salary of less than $38,000.
Executives often receive record bonuses for meeting efficiency goals, essentially for laying off staff and reducing labor costs.
87% of Americans believe this disparity is a problem.

"Technology, which once promised to free people from repetitive tasks and open new opportunities for growth, is now being used as an argument to eliminate them."