The tech industry has witnessed a significant surge in layoffs this year, with a staggering 226,000 employees being let go by tech companies. This represents an increase of nearly 40 per cent compared to the previous year’s figure of 202,000 layoffs in 2022, according to data by AltIndex. The situation in 2023 has proven to be far more dire, marking a distressing downturn for the tech sector.
This wave of layoffs has had a profound impact, resulting in the closure of numerous workplaces and earning 2023 the unfortunate distinction of being the bleakest year on record for the tech industry.
In the span from January to December of 2022, the tech industry saw a dramatic surge in layoffs, with a staggering 164,744 employees being let go. This number is nearly eleven times higher than the 15,000 reported the previous year. An alarming 75,912 individuals found themselves unemployed in January alone, accounting for almost half of the total layoffs reported in 2022.
Following this, the number of job cuts decreased in February, but the trend persisted with approximately 40,000 more layoffs. Despite a decline in the subsequent three months, the tech sector still recorded almost 73,000 job losses during this timeframe.
Since then, an additional 24,000 staff members have been handed pink slips, bringing the cumulative total of layoffs to 226,117 as of the latest report. This intensification of job cuts is attributed to a range of factors, including the uncertain global economic landscape, inflation, ongoing supply chain challenges, and a deceleration in revenue growth. Prominent industry giants such as Google, Meta, Microsoft, and Amazon have been at the forefront of this wave of layoffs, signalling a distressing trend.
Also Read Hollywood vs AI: Why famous actors including Oppenheimer, Barbie cast are on strike
The ripple effect has extended to smaller tech firms operating across various sectors such as retail, cryptocurrency, and transportation. These companies have been compelled to undertake cost-cutting measures, contributing to the highest level of layoffs ever witnessed in the tech industry.
Tracing back over the past three years, the layoff statistics paint an even grimmer picture. Since the start of 2021, tech companies have severed ties with more than 405,000 employees.
Battle of the billionaires: Elon Musk vs Mark Zuckerberg cage match could make over $1 billion
Google appeals to Supreme Court to quash antitrust directives on Android in India