18,000 layoffs at Amazon: an announcement that is part of a ‘post-covid’ trend for the tech sector

18,000 layoffs at Amazon: an announcement that is part of a ‘post-covid’ trend for the tech sector

Is the economic model of tech companies therefore out of breath? “LDigitization comes in waves and in stages. The Covid was a huge boost. And so suddenly there was a huge wave of digitization and a lot of pushing towards the online model. There was no reason to think that this growth was going to be infinite. But there is a bit of this myth that comes from the fact that in digital, growth is relatively costless, that is to say, you can grow in a kind of vacuum“.

For some decentralized online shopping services like Alibaba, “you add a few servers and poof, that’s it, you can easily add volume if you want, without adding a lot of fixed costs in a way, which is very different from traditional businesses. And so we believed that this exponential growth which was specific to the models of companies focused on digital was in fact inseparable from these models.“, says Mr. Van Zeebroeck.

For him, these companies have now reached a plateau. “Lhe theory is that the growth can be exponential. The practice is that humanity is 8 billion people and no more. And among them, there is a good part of them that is not digitized at all. At some point, growth plateaus“.

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