The IT layoffs: What's Behind Them?

The IT layoffs: What's Behind Them??

The advent of 2023 has brought a wave of ambiguity among IT employers worldwide. In fact, nearly tens of thousands of IT employees had to leave their high-income jobs in recent months. The anticipated recession in the coming years, transpired by post covid economic conditions, has forced big IT tycoons to lay off hundreds of employees.

As per Crunchbase, around ninety-one thousand workers in I.T. have been laid off, resulting in an eight-year record-breaking unemployment in the U.S.?

Layoffs of IT employees can be attributed to the following reasons:?

An Eye For Recession: IT firms are reassessing their expenditure today, foreseeing the future. According to The World Bank and International Monetary Fund, the economies were cautious about a slowdown.?

Reduce The Expense: Reduce The Expense: Cost cutting has been one of the prominent steps being taken by the tech giants. In fact, Google has taken a few cost-reducing steps by cancelling its cloud gaming service Stadia and Pixelbook laptops.

Debilitating Consumer Demand: Keeping the inflation in light, prominent economies like the US, Japan, India, and the West have been included. Moreover, the Russia-Ukraine war has also created ripples in the significant trade ways of the world, resulting in lower-consumer demand.??

Spike in Prices: The rising consumer costs have obligated banks to go for stricter monetary policies from 2022. The key interests have been raised by all the central banks unanimously.?

Burdened Cash Flow: Offlately, the investments made for recently initiated solutions have been non-profitable. Meta's Bulletin, a sub stack competitor, Microsoft's AltspaceVR, happened to be way too futuristic, creating a vacuum between investment and need. This eventually led to cash burn and losses in many companies.