Computer accessories major Logitech joins the list of entities in the technology sector to lay off employees. The company has reportedly cut 300 jobs amid a decline in sales.
The development, reported by People Matters, does not come as a surprise since tech companies worldwide are realigning their resources for better allocation and optimisation.
Seasonal tech shopping and the consequent sales woes
While inflation and other macroeconomic variables are playing spoilsport for tech companies leading them to take job cut decisions, one also can see the trend of seasonal shopping for tech durables.
In India, major e-commerce websites have the practice of giving deep discounts on mega shopping days around festive occasions. The companies start building up the hype for their consumers through promotions on multiple platforms. It has almost become a trend for a tech YouTuber to tell its audience to wait for the next sale for buying a tech accessory. One is compelled to think that consumer buying and consumption patterns for tech products have a fluctuating model throughout the year.
The mirage of introductory price with special offers
Tech accessory companies around the world launch their products with great hype and offers. While in the beginning, consumers are lured into buying tech products at the special discounted introductory price, the companies show a tendency to lower the product price between 10 to 20 percent after a few months. Customers over a period of time have become smarter and play the waiting game to buy their favourite products.
From chip shortages to job cuts: Irony for the tech industry
While business practices may not be direct reasons for job cuts, they need to be revisited as part of the strategy to arrest a pattern of fluctuating and declining sales. If one may recall, tech companies were suffering from the acute problem of chip shortage during the pandemic, it is a slight irony that manpower resources became an issue in the post-pandemic world.