The year 2023 has proven to be a challenging time for employees in the tech industry, with nearly 200,000 individuals losing their jobs worldwide.
Big Tech companies and startups alike have been implementing significant layoffs, with Meta, BT, Vodafone, and others announcing further plans for employee reductions in the coming months.
Read on to find out all the details!
695 Companies Let Go 198,000 Employees in 2023
According to data from layoffs tracking site Layoffs.fyi, approximately 695 tech companies have let go of around 198,000 employees thus far in 2023. In comparison, over 1,000 tech companies laid off more than 161,000 employees in 2022.
The Indian startup scene has also witnessed job losses, with nearly 23,000 employees being affected across approximately 82 startups.
The start of the year saw a significant number of job cuts, particularly from major companies such as Amazon, Microsoft, Google, and Salesforce. In January alone, nearly 100,000 tech employees globally found themselves without a job.
Overall, approximately 360,000 tech employees have been laid off since 2022 through May of this year.
What Are The Top Reasons For Firing Employees?
Companies have cited various reasons for these layoffs, including over-hiring, uncertain global macroeconomic conditions, and the lingering impact of the Covid-19 pandemic.
Meta, formerly known as Facebook, is reportedly preparing for another round of layoffs, with an estimated 6,000 employees expected to be affected. Amazon India also recently laid off around 400-500 employees from its Cloud division AWS and HR support verticals.
Fintech unicorn Zepz is reducing its workforce by 26%, resulting in 420 job losses. UK telecommunications giant BT Group has announced plans to cut a massive 55,000 jobs by the end of the decade. Global telecom carrier Vodafone is also planning to reduce its workforce by 11,000 over the next three years as part of efforts to streamline operations.
Furthermore, Microsoft has decided not to provide salary raises to its salaried employees, including senior leaders, this year due to ongoing concerns regarding global macroeconomic conditions.
The tech industry’s current landscape is characterized by significant workforce reductions as companies grapple with various challenges and uncertainties.
