The Great Tech Layoff: Rising Tide of Firing Spree

The tech industry has been the most vulnerable to sacking employees since the beginning of 2023 due to the economic slowdown.

“The great tech layoff ” term has become very popular nowadays. As they say “Companies which promise work-life balance are giving out pink slips”. This saying has become synonymous with the sacking spree which is being done by tech companies. The tech industry is always in the news, sometimes for its innovation, sometimes for new features & research. But these days tech companies have been making news for laying off its employee.
According to Layoffs.fyi ( a website that has been tracking the layoffs in the tech industry across the globe) Approx.1.60 Lakh jobs had been cut by 1,044 tech companies. Nearly 168,243 layoffs have been made by tech companies in 2023 so far. Facebook’s parent company announced a plan to lay off the next 10,000 employees in a bid to cut costs.

Meta had already cut 11,000 jobs in 2022. In January Google revealed its plan to sack nearly 12,000 globally. Earlier this year Microsoft announced the fire of 10,000 employees amid slower revenue growth. After firing 18,000 workers Amazon (a giant e-commerce company) has recently announced to cut 9000 more jobs.

In January this year, IBM disclosed its plans to cut 4000 jobs as they have not been able to meet their annual cash target. Similarly, various tech companies like Cisco, Intel, Spotify, Salesforce, have been firing thousands of their employees all over the world.

Apple is the only giant company that has been resistant to this great layoff. Recently Apple CEO Tim Cook says layoffs are a “last resort” and not something Apple is considering right now. The tech empire is witnessing a massive downturn which may lead to the end of the era of this empire.

What is the reason behind this great tech layoff?

Reducing the cost of capital
Due to covid-19 pandemic, there had been a massive economic slowdown all around the world. Then, Russia invaded Ukraine in 2022 which also contributed to this economic downturn. On the other hand, the inflation rate has been rising continuously. Due to these factors, tech companies are not able to make enough money to bear the cost of their expenses and they want to save their money for the payment of debt. There has also been pressure from investors to decrease expenses. So cutting costs to save money is one of the reasons for these layoffs.

Over-hiring during pandemic
The tech industry is the only industry that saw record high growth and profit during the Covid-19 pandemic. Due to the lockdown, everything has shifted online, like education, shopping, etc. People were working remotely as working from home had become very common during lockdown. This resulted in the increase in the use of online apps which in turn led to the increase in online activities. And that has created a demand for more tech employees. So, various giant companies went through a hiring spree during the lockdown. But when restrictions were lifted and everybody was coming back to their normal life, the use of online services has been declined and the demand for tech employees also decreased. So this is also one of the very reasons for this firing spree.

Speculation of recession
Due to the rising possibility of a recession, these tech companies have started sacking its employee. As business whether large or small faces a decline in profit and sales during the recession. And the risk of recession will create a domino effect which may lead to mass layoffs.

Various other reasons have contributed to this great tech layoff like the increasing use of AI tools and the Silicon Valley bank collapse etc. After these mass layoffs what next for tech employees? Will there be more such layoffs? These questions have been hovering in the mind of future employees. The dream of students and budding techies for working in these giant companies is now turning into a big nightmare.

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