Layoffs At Tech Firms Surpass Great Recession Levels, Might Worsen In Early 2023

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Layoffs At Tech Firms Surpass Great Recession Levels, Might Worsen In Early 2023

Since the start of Covid-19, 1,495 tech businesses have laid off 246,267 people, according to statistics from layoffs. However, 2022 has been the worst year for the industry, and early 2023 might be much worse.

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The number of employees laid off by tech companies in the year 2022 alone has exceeded that of the Great Recession, which hit the world in 2008-2009 and was triggered by the fall of Lehman Brothers. Trends suggest that these cutbacks could worsen in the upcoming year, considering the global economy.

Probable participant companies of these layoffs are Meta, Amazon, Twitter, Microsoft, and others. Layoffs from these companies will affect thousands of professionals, creating a mass wave of unemployment and inflation.

Layoffs Greater Than Great Recession

According to data from the global outplacement and career transitioning firm Challenger, Gray & Christmas, IT businesses fired roughly 65,000 people in 2008, and a similar number of individuals lost their jobs in 2009.

Comparatively, 965 IT firms have terminated more than 150,000 workers globally this year, exceeding the Great Recession-era highs of 2008–2009. Up until mid-November, there had been 1361 waves of layoffs at IT businesses worldwide, according to TrueUp's tech layoff tracker.

The tech cutbacks, ushered by businesses like Meta, Amazon, Twitter, Microsoft, Salesforce, and others, are expected to worsen in the first few months of 2023, given the unstable global macroeconomic conditions. A study by MarketWatch shows that layoffs are a part of a plan used by tech companies to stay viable through 2023 and beyond, reported the Economic Times.

More Giants Join The Layoff Bandwagon

Since the start of Covid-19, 1,495 tech businesses have laid off 246,267 people, according to statistics from layoffs. However, 2022 has been the worst year for the industry, and early 2023 might be much worse.

More than 73,000 US IT industry employees have been let go as of mid-November as a result of widespread employment layoffs spearheaded by tech giants. Additionally, in India, over 17,000 tech workers were let off.

Amazon and PC and printer major HP Inc have also entered the worldwide layoff season and are expected to fire more than 20,000 and 6,000 workers in the coming days. In a 'rebalancing' act, Cisco has started laying off 4 per cent of its workforce worldwide.

Google appears to be the next company to lay off employees, and worried employees got no assurance from the CEO Sundar Pichai. In an all-hands meeting, he was reported as saying that it's "tough to predict the future" and said he cannot make "forward-looking commitments".

Also Read: Centre Directs Google To Drop Advertisements Of Betting Companies From Search Results & YouTube

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Writer : Deepthi Rao
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Editor : Jayali Wavhal
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Creatives : Jayali Wavhal

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