Tech Hiring/Firing Updates 2023?

Introduction – 

The Tech Industry, One of the highest-paying industries in the world is facing massive layoffs for the past couple of months. From big Tech companies to small Indian startups… it’s happening everywhere. All the bellwether companies like Google, Apple, Amazon, and Twitter are announcing layoffs and slowing down hiring. Unfortunately, it’s the season of LAYOFFS!!

In this blog, we will talk about why and how big Tech companies are firing employees left right and centre. 

Hiring freezes and layoffs have impacted every corner of the Tech industry. 1,50,000 Tech workers lost their jobs in 2022, with more than half of them happening in November and December alone, according to Layoffs.FYI

Why layoffs are happening?

Tech companies saw a raising boom during the pandemic as everything got shifted online. The tech sector became a rare success story in all the doom and gloom. From door-to-door delivery, and work-from-home apps to online education…big tech was having its big moment. IPO activity and venture capital returned sold to levels not seen before. Tech sectors like Ed Tech, Online gaming, Agri-Tech, Med-Tech, and Online Media saw immense growth during the pandemic period and had blockbuster profits. On the other hand, Some industries such as travel and aviation, retail, and hospitality had taken the worst hit due to the same. 

Due to this massive growth in the Tech industry, all the companies started hiring in mass as it was natural for them to hire to meet the exceeding demand. Many people predicted this would be a permanent acceleration that would continue even after the pandemic ended but unfortunately, it did not happen. 

Cut to the present, Investments are down. Everything in the Tech IPO market has slumped to its lowest levels since the crash of 2008. Apple and Amazon each lost more than 830 billion dollars in market cap in 2022. 2022 became the year that big Tech stocks fell from glory. From shopping to education, everything went back to normal, and revenues and growth both came down to the level it was pre covid causing the Tech companies to suffer losses. 

Apart from reckless hiring during the pandemic, some other reasons that are causing layoffs could be the Russia-Ukraine war, fear of looming recession and Inflation. 

Below is a list of a few companies with their Layoff numbers – 

  • – Amazon recently said they will cut more than 18,000 jobs from its workforce (1000 from India)
  • – Apple has paused hiring for jobs outside of research 
  • – Adobe has eliminated 100 jobs
  • – Door Dash is cutting more than 1200 jobs 
  • – Salesforce will cut about 10% of its workforce 
  • – Meta is cutting more than 11,000 jobs, the First major round of layoffs in the company’s history 
  • – Twitter laid off half of its workforce 
  • – Unacademy eliminated 10% of its workforce in its second round of layoffs in 2022
  • – Meesho laid off 150 employees in April 2022
  • – Vedantu has eliminated about 1109 of its workforce 
  • – Chime Financial Inc. is cutting 12% of its staff, or 160 people
  • – Coinbase Global Inc. is eliminating 60 positions as the cryptocurrency market slumps. 
  • – Opendoor Technologies Inc. said that it’s laying off about 550 employees — roughly 18% of its headcount.
  • – Sharechat fired 20% of its workforce, affecting more than 500 employees due to market uncertainty.
  • – Dunzo also laid off 3% of its workforce as part of its cost-cutting measures, reported IANS.
  • – Microsoft Corp. laid off about 1,000 employees across divisions last year in October
  • – Byju’s fired over 4,000 employees

Above are the numbers of just a few companies…but the list goes on.

So will 2023 be a tough year for IT aspirants? 

As per the report in economic times demand for Tech hires dropped by 90 percent in December of 2022 when compared to a year ago. However, interestingly there is a good opportunity for IT professionals in the Non-IT Industry as digitalization has taken place in all the Non-IT industries who are actually the clients of the IT industry. To support this digital transformation, companies need IT professionals for smooth functioning. 

Though the number of openings for the positions will not be that high, if earlier it used to be 5 to 7 then now it might come down to 2 or just one which is not as bad. 

So to conclude, the career of Tech aspirants might face lots of difficulties in recent times but this is not a dead end. 

Sources – 

Layoffs.FYI

Economic Times

– WION/Gravitas 

https://www.bloomberg.com/news/articles/2022-12-07/tech-layoffs-2022-tracker-these-companies-are-making-big-job-cuts

https://www.timesnownews.com/business-economy/companies/tech-layoffs-over-1600-employees-being-fired-in-a-single-day-on-average-in-january-article-97057701

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