Tech layoffs: More than 2,700 people have lost their jobs per day so far in 2023

It is difficult to get a job these days. Industry growth struggles with constraints from high inflation, geopolitical tensions, rate hike cycles, multi-year low unemployment rates, the Cold War between the US and Russia, and much more. Major economies are expected to be on the verge of recession.

as the tens of thousands of people laid off by the tech giants meta, Google, Amazon, and Microsoft in recent times. Meta last year stunned by massive cutbacks of 11,000 while Google reduced its workforce by 6% to 12,000, Microsoft, on the other hand, let go of 10,000 employees. And to top it all, e-commerce giant Amazon has largely laid off 18,000 employees. Tesla CEO Elon Musk Those who took charge of Twitter last year also fired a large number of people on the social media platform. Dell Technologies also largely laid off 6,650 employees.

More layoffs are likely. Recently, Facebook’s parent is said to be looking to cut another 11,000 jobs, while the telecom giant Ericsson Announced plans to cut 8,500 jobs. Consulting firm McKinsey is in a similar boat and is planning to lay off 2,000 employees.

If that’s not enough to send jitters among job seekers, reports suggest that Amazon may cut employee salaries by 50% in 2023. Whereas, Google is now asking employees to share desks while working. On the other hand, many employees are still waiting for their onboarding even after months of being hired by various companies.

According to Trueup.io data, which tracks tech layoffs, there have been 534 layoffs at tech companies so far in 2023, affecting 153,005 people (2,732 people per day).

Data shows that there were 1,535 layoffs in tech companies last year, affecting around 241,176 people.

Ujjal Dey, founder and CEO of Karmavi, which enables organizations of any scale to build their employer brand and simplify and streamline the recruitment process, said, “The first half of 2023 will be marked by uncertainty over the job market as Inequality will be seen across sectors. Apply a cautious approach towards signs of recovery and an impending slowdown.”

But this is not the only reason for layoffs. IT companies are seeing normalization in demand post-pandemic, but their valuations are coming down. Furthermore, startups focused on improving their bottom lines are motivated to seek conservative recruiting strategies.

The Karmawi founder pointed out that post the pandemic, the burgeoning IT business is witnessing massive layoffs as demand is normalizing and valuations are coming down.

“The low risk appetite of investors is eliminating aggressive funding and prompting startups and SMBs to focus on their bottom line and resort to more conservative recruitment tactics,” he added.

Another major reason could be the adoption of artificial intelligence such as chatbots, which are gaining popularity as they allow to increase productivity, reduce human work and perform more challenging tasks, and are likely to be flexible and efficient.

So when will the winter of layoffs end? It is expected to be completed possibly in the second half of 2023.

The founder of Karmawi believes that rapid digitization will drive demand, and expects a market recovery in the second half of 2023, especially for talent with experience in the BFSI sector.

He added, “Infrastructural developments such as 5G will accelerate smart city initiatives and transform manufacturing, transportation, healthcare and retail sectors. Indigenous startup ecosystems and R&D hubs will get a new impetus, and edge computing will harness technical talent with AR/VR.” The demand will increase. , data analytics and AI expertise.”

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