Year 2023 has been a precarious one for techies around the globe due to the large-scale layoffs announced and executed by companies. No company has been immune to this and many people who lost their jobs from companies like Twitter (now called X), Meta, Google, Amazon, and Microsoft came forward and shared their ordeal and storied on LinkedIn.
Crisis in the Indian IT Sector
The layoff wave hit many Indian employees as well and many took to Twitter, to vent out as well as to find another job.
As per a report, as many as 67,000 employees have been laid off within a year by 4 IT giants – Infosys, TCS, Wipro and Tech Mahindra.
Diving deeper, 24,182 employees have been shown the pink slip by Infosys while Wipro laid off 21,875 employees. TCS culled 10,818 people while Tech Mahindra bid adieu to 10,669 roles.
Were the layoffs only thing that plagued the IT sector, the answer is no! since IT has been characterized recently with slowdown in hiring. As per the numbers, December 2023 saw 21% reduction in number of job offers rolled out to candidates as compared to same time in 2022.
Coupled with layoffs and slowed hiring, companies have also resorted ways to bring down their costs. As compared to fresher hiring in previous years, this year saw reduction in job offers being rolled out to fresher’s by almost 50%.
In another such disincentivizing move, tech giant Wipro has slashed the Rs 6.5 lakh package offered to freshers and citing changes in ‘macro environment’, they have altered the compensation for freshers.
Recent Developments in Indian IT Companies
This move faced the flak by people, with company’s ethics being questioned from all across. Reportedly, this was also confirmed that the company that the freshers were not forced to accept the new offer and had given them a chance to decide if they wanted to hop on board with the lower compensation offer.
On the same lines, IT giant Infosys said that they shall be skipping campus hiring for the year since they had enough freshers to train already.
Infosys CEO and MD Salil Parekh, in a press conference said that the company was carrying “inefficiencies in its employee pyramid and had enough room to tighten utilisation to 84-85 percent.”
For quarter that ended on March 2023, company also reported that the average variable pay shall be slashed by 40% for its employees.
