Approximately 695 tech companies have used layoffs as a last resort, according to statistics from the layoffs tracking website Layoffs.fyi, to fire about 198,000 workers so far this year.
With an alarming amount of people losing their jobs, the year 2023 has proven to be an unusually challenging time for tech workers around the world. Companies including Meta, BT, Vodafone, and many others have made announcements about their intentions to execute additional workforce reductions in the upcoming months. To date, approximately 200,000 tech workers from established Big Tech organisations to emerging startups have been laid off.
Approximately 695 tech businesses have used layoffs to fire almost 198,000 workers so far this year, according to data from the layoffs tracking website Layoffs. fyi. To put things in perspective, more than 161,000 people were let go by more than 1,000 IT companies in 2022.
This suggests a considerable rise in the number of tech workers who lost their jobs in 2023 as compared to the prior year.
With large corporations like Amazon, Microsoft, Google, Salesforce, and others contributing to the high number of job losses, the troubling trend was clearly visible in January alone when nearly 100,000 tech professionals worldwide were impacted. Between 2022 and May of this year, an estimated 360,000 tech workers had lost their jobs overall.
Big Tech corporations are continuing to reduce their workforces, and they have given a number of justifications for these layoffs, such as overhiring, shaky global macroeconomic conditions, and the long-lasting effects of the Covid-19 pandemic.
According to reports, Meta, formerly known as Facebook, is getting ready to start another wave of layoffs, which are expected to start the next week. Although the precise number of employees affected has not yet been determined, it is believed that this round of layoffs will touch about 6,000 people.
In addition to Meta, other well-known companies have also decreased their workforces. For instance, Amazon India recently let go of 400 to 500 employees from both its People Experience and Technology Solutions (PXT) business, which covers the HR and support verticals, and its AWS cloud division.
A unicorn fintech business called Zepz made the decision to lay off 420 employees, or 26% of its entire workforce. This decision is a reflection of the challenges facing enterprises in the financial technology sector.
According to BT Group, a telecom business based in the UK that has also made the revelation, a frightening 55,000 jobs will be lost by the end of the decade. The extent of the company’s restructuring efforts is demonstrated by this step.
The intentions to cut 11,000 jobs from Vodafone’s workforce over the next three years have been announced. Vodafone is a major worldwide telecom carrier. The corporation seeks to optimise operations by streamlining both its corporate structure and local marketplaces.
Microsoft has opted not to provide its paid employees, including senior leaders, wage increases this year, which adds to the difficult circumstances.
