The tech sector, encompassing established tech giants and startups, has witnessed a significant wave of layoffs over the past two years, impacting more than 400,000 employees worldwide. Citing challenging global macroeconomic conditions, both Big Tech companies and startups have been forced to trim their workforce, with India seeing a substantial share of these layoffs.
Layoffs in the Tech Industry:
Data from layoff.fyi, a platform monitoring tech sector job cuts, reveals that 2,120 tech companies globally have laid off a staggering 404,962 employees as of October 13, 2023. The layoffs were prevalent in 2022, where 1,061 tech companies laid off 164,769 employees, and the trend continued into 2023, with 1,059 companies letting go of 240,193 workers.
Averaging the Layoffs:
On average, about 555 employees lost their jobs every day over the past two years, translating to approximately 23 workers every hour. January alone witnessed 89,554 employees being laid off. Despite a decrease in the overall count, layoffs have persisted, as evidenced by the recent data indicating that 4,632 employees were laid off in the previous month.
Key Sectors Affected:
Retail tech and consumer tech sectors have been hit the hardest in 2023, shedding nearly 29,161 and 28,873 employees, respectively. The data underlines that more layoffs are expected in the remaining months of 2023.
Notable Layoff Announcements:
Qualcomm, a prominent chip-maker, is planning to eliminate 1,258 jobs across its offices in California, USA.
Other US-based tech firms like Chainalysis, Plex, Cisco, Pie Insurance, and Epic Games have also conducted substantial layoffs in recent months.
Several gaming companies, including Ascendant Studios, Beamdog, Crystal Dynamics, Roblox, Blizzard, Team17, Naughty Dog, Niantic, and Keywords, have recently laid off varying numbers of staff.
In India, edtech major Byju’s has announced a significant business restructuring that will lead to the layoff of 4,000-5,000 employees. Additionally, quick-grocery delivery provider Dunzo has reportedly laid off at least 150-200 employees due to severe cash crunch.
The tech industry, known for its rapid growth and innovation, is navigating a challenging phase marked by economic uncertainties. Layoffs and workforce reductions have become a common trend, impacting employees across the globe. The road to recovery and stability remains uncertain, and the tech sector continues to adapt to evolving circumstances while prioritizing business sustainability.