New Delhi: The year 2023 has been marked by a significant increase in job losses among tech employees worldwide, presenting numerous challenges for the industry. Many tech professionals, ranging from employees in established Big Tech companies to those in emerging startups, have experienced layoffs. Major companies such as Meta (formerly Facebook), BT, Vodafone, and others have announced their plans for further reductions in their workforce.
According to data from the layoffs tracking site Layoffs.fyi, approximately 198,000 tech employees have been laid off by around 695 tech companies so far this year. This figure represents a substantial rise compared to the previous year, where over 161,000 employees were laid off by more than 1,000 tech companies in 2022.
The distressing trend was particularly noticeable in January, during which nearly 100,000 tech employees worldwide were affected by layoffs. This high number of job losses was contributed to by major companies such as Amazon, Microsoft, Google, Salesforce, and others. In total, an estimated 360,000 tech employees have found themselves unemployed between 2022 and May 2023.
The reasons cited by Big Tech companies for these layoffs vary and include over-hiring, uncertain global economic conditions, and the lasting impact of the Covid-19 pandemic. Meta (formerly Facebook) is reportedly planning another round of job cuts, expected to begin in the following week, although the exact number of affected employees has yet to be confirmed. However, it is anticipated that approximately 6,000 individuals will be impacted by this round of layoffs.
In addition to Meta, other prominent companies have also implemented workforce reductions. For example, Amazon India recently laid off approximately 400-500 employees from its Cloud division AWS, as well as from People Experience and Technology Solutions (PXT), which includes HR and support functions.
Fintech unicorn Zepz has made the difficult decision to lay off 420 employees, which represents 26 percent of its total workforce. This action reflects the challenges faced by companies in the financial technology sector.
Furthermore, BT Group, a telecommunications giant based in the UK, has announced plans to eliminate a staggering 55,000 jobs by the end of the decade. This move highlights the significant restructuring efforts being undertaken by the company.
Similarly, global telecom carrier Vodafone has declared its intention to reduce its workforce by 11,000 employees over the next three years. The company aims to streamline its headquarters and local markets to achieve a more simplified operational structure.
Adding to the challenging environment, Microsoft has decided not to provide salary increases to its salaried employees, including senior leaders, this year. This decision reflects the economic pressures and uncertainties faced by the tech industry.
Overall, the tech industry has experienced a substantial increase in job losses in 2023, impacting employees across various companies and sectors. The reasons behind these layoffs are diverse, including factors such as over-hiring, economic conditions, and the ongoing effects of the Covid-19 pandemic. As the industry continues to adapt and navigate these challenges, it remains crucial to support affected employees and explore opportunities for growth and recovery.
