The looming impact of generative AI on job markets has prompted a wave of employee terminations in tech companies worldwide, even during the holiday season. Contrary to previous years, where tech workers were spared during festive periods amidst global economic turmoil, layoffs have commenced in the early months of the New Year.
Reports reveal that tech companies, encompassing startups, have collectively removed over 425,000 employees globally in the past two years, with a staggering 36,000 job losses recorded in India within the same timeframe.
Citing overarching global economic conditions, major players in Big Tech and startups have initiated widespread employee layoffs, with the trend showing no signs of abating, IANS reports.
According to data sourced from layoff.fyi, a platform tracking tech sector job cuts, a total of 1,178 tech companies have terminated 260,771 employees in the current year alone (as of December 26). In 2022, 1,061 tech firms terminated jobs to 164,769 employees.
Shockingly, an average of 582 workers lost their jobs daily over the last two years, translating to more than 24 individuals being laid off every hour.
Notably, sectors like retail-tech, consumer-tech, and fintech witnessed the highest numbers of employee terminations this year.
Prominent companies like Paytm have recently axed over 1,000 employees as part of cost reduction strategies and business realignment. ShareChat, a social media platform, bid farewell to 200 employees, constituting approximately 15 percent of its workforce, amid strategic restructuring.
In another instance, Loco, a game streaming platform, reduced its staff by approximately 36%, equating to 40 individuals out of a total of 110 employees.
Further, Adda247, an edtech platform backed by Google, dismissed around 250-300 employees across various sectors. Meanwhile, industry giant Byju’s undertook a massive business restructuring, leading to the termination of 4,000–5,000 employees.
Altogether, these companies have eliminated over 10,000 positions within the past two years.
Dunzo, a homegrown quick-grocery delivery provider, reportedly laid off an additional “150-200” employees in response to severe financial constraints in September. The company had previously executed two rounds of job cuts, resulting in nearly 400 employees being let go earlier in the year.
The relentless wave of layoffs in the tech industry continues to raise concerns over job security and the broader implications of advancing AI technologies on global employment.