Navigating Turbulent Waters: A Look at Tech Company Layoffs
In Focus:
Headlines sound familiar? I won’t be surprised if they did! After all, the tech industry was on the front pages for its mass layoffs. The tech industry, known for its fast-paced growth, innovative products, and disruptive technologies, has also experienced its share of challenges. Economic downturns, market shifts, and global crises have led several tech companies worldwide to implement layoffs. Furthermore, it is likely to say that the tech bubble of covid has burst.
Tech Company Layoffs: A Global Trend
In the years 2022-2023, the tech industry witnessed significant layoffs across the globe. Well-established companies faced financial pressures, while startups confronted market uncertainties. Layoffs affected not only frontline workers but also mid-level managers and executives. These measures, though unfortunate, were often seen as necessary for survival and restructuring. Biggest names in tech such as Google, Amazon, Yahoo, Meta, and many saw massive layoffs. According to estimates from Techcrunch, 2023 witnessed 2,01,860 layoffs. Another report from layoffs.fyi shows that 902 tech companies cut jobs in 2023 affecting 2,23,089 employees
Top 5 Tech Layoffs: Headlines of 2023 (Global)
1. Amazon: 27,000
Andy Jassy, the CEO, broke the news of laying off 27,000 employees as a measure of cost-cutting. In the first phase, 18,000 jobs were affected. The second phase saw another 9,000 employees getting laid off.
2. Meta: 21,000
Meta had started laying off back in Nov 22 by initially announcing 11,000 job cuts in 6 months to cut down on expenses. In Mar 23, another 3 rounds of planned layoffs have been announced which would affect 10,000 employees across the Family of Apps (FoA) and Reality Labs (RL) segments.
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3. Accenture: 19,000
Accenture announced in March that it would cut ~19,000 jobs (2.5% of its workforce) over the next 18 months mostly affecting employees in its non-billable corporate functions. They added that ~$1.2B was allocated for the severance of employees who will be let go.
4. Google: 12,000
You might have heard of ‘Golden 12K’. That’s what the employers fired by Sundar Pichai were being called. Google laid off 12,000 employees or 6% of the total workforce back in January.
5. Microsoft: 10,559
Microsoft had earlier announced layoffs that would affect 10,000 employees back in January. In March, according to reports, Microsoft further laid off 559 employees from its Security roles at Seattle offices taking the total job cuts to 2,700 in the area.
Conclusion
In conclusion, tech company layoffs during economic uncertainties are a reality that businesses face. However, strategic talent management, employee engagement, diversification, and innovation play pivotal roles in avoiding layoffs and ensuring stability and growth. In the dynamic tech industry, adaptability and a people-centric approach are key to sustaining success even in turbulent waters.
Sayan Dey
TA Dialogues
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