Equinix to cut 3% of staff amidst the greatest demand for data center infrastructure ever

Equinix told Light Reading that the layoffs are a result of the evolution of its services to support changing customer needs, which requires internal adjustments and resource reallocation. At the same time, Equinix says it is continuing to actively recruit new talent.

There’s no doubt that there’s a skills challenge in the data center market and in IT at large. Studies by BCG and LinkedIn have found that one-third of skills associated with technology roles will be obsolete in five years, requiring new skills in their place. For instance, according to Forrester, app development is on the decline (after hitting its peak in 2021).

“Like enterprises writ large, data centers face major challenges in getting the right people with the right skills into the right roles,” Gina Smith, research director of IT skills for digital business at IDC, told Network World.

Forrester’s Mark agreed that it’s a much harder labor market to navigate for those without AI skills, leading to “higher layoff potential.”

“With an uneven economic recovery, and enterprises unsure about future market prospects, we’re seeing organizations look to reduce costs and maintain a tight focus on initiatives that produce value,” she said.

She pointed out that AI skills, including knowledge of copilots that support coding, and AIOps, which leverage predictive and generative AI to improve data center operations and reduce manual interventions, not surprisingly, command a premium these days. Skills in architecture are also in high demand, as power-hungry AI systems require rethinking of data center design. Additionally, the industry is looking for workers with knowledge of cloud architecture and engineering, data analytics, management, and governance skills.