Tech industry has already laid off over 2 lakh workers in 2023. However, the worst is yet to come

The year 2023 is proving to be a particularly challenging time for the tech industry as layoffs have reached unprecedented levels. According to “layoff.fyi,” a website that tracks job cuts, 696 tech companies have let go of employees this year. As of May 18, nearly 197,985 tech workers have lost their jobs, and the number is expected to rise further.

The layoff tracker also highlights that the number of layoffs in 2023 has already surpassed the figures from the previous year. In 2022, a total of 1,056 tech companies decided to reduce their workforce, affecting approximately 164,000 employees throughout the year.

Big Tech has been ruthless
Some notable companies that have carried out significant layoffs this year include Meta, Amazon, and Microsoft. Twitter was one of the first major tech companies to implement mass layoffs, cutting its global workforce in half following Elon Musk’s takeover in late October. The impact of these layoffs on Twitter’s workforce in India has been particularly severe.

Other tech giants such as Google, Meta, Amazon, and Microsoft have also announced their plans to downsize in the coming months, with the restructuring process still underway. It has become a common occurrence to see employees sharing news of their sudden departures on LinkedIn while actively searching for new job opportunities.

Layoffs continue from last year but impact greater in 2023
Notably, Meta has recently revealed plans to lay off up to 6,000 employees, starting this week. The company had already decided to let go of 11,000 workers in November and announced an additional 10,000 job cuts in March 2023.

Similarly, Amazon has chosen to shut down certain prominent divisions in order to reduce costs, specifically targeting its underperforming hardware division. The latest casualty was the fitness-oriented Halo division, which produced intriguing products like the Halo watch and Halo Rise sleep tracker as competitors to Fitbit.

In India, several tech companies have resorted to drastic measures to cut jobs and save money. Among these companies are Dunzo, Sharechat, Rebel Foods, BharatAgri, and Ola. Furthermore, even international companies like Accenture, which have a significant workforce in India, have conducted layoffs. For instance, Accenture announced the layoff of approximately 19,000 workers, equivalent to about 2.5 per cent of its total workforce, due to concerns about the deteriorating global economy.

More layoffs to come
BT Group, the prominent telecommunications company in the UK, has recently revealed its intentions to drastically cut 55,000 jobs by the end of the decade. This move comes as part of the company’s efforts to streamline its operations and adapt to changing market dynamics.

Another major player in the global telecommunications industry, Vodafone, has also announced plans to reduce its workforce by 11,000 jobs over the course of the next three years. The company aims to simplify its organizational structure, both at the headquarters and in local markets, in order to improve efficiency and effectiveness.

In the midst of challenging global macroeconomic conditions that are impacting the tech industry, Microsoft has made the decision to withhold salary increases for its salaried employees, including senior leaders, for this year. The company is cautious due to the uncertain economic environment and aims to manage costs during these challenging times.

Apple manages to stave off major layoffs
Notably, Apple is the only major tech company that has managed to avoid large-scale layoffs thus far. Even CEO Tim Cook has stated that layoffs are not currently on the table, although he has not completely ruled out the possibility.

While most tech companies attribute their layoffs to factors such as the pandemic, rising inflation, and excessive hiring, Apple has been cautious in its hiring practices. According to a Forbes report, Apple’s hiring rate has remained consistent since 2016.

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