Tech Companies To Reduce Hiring By 40% In This Fiscal Year

The IT industry is currently navigating various challenges that have led to shifts in their hiring and workforce expansion strategies. Reports suggest that the sector is expected to reduce its hiring rate by around 40% in the current financial year compared to the previous one.

Key players in the Indian IT industry, including TCS, Infosys, HCL Tech, Wipro, and Tech Mahindra, have reportedly scaled back their hiring efforts during the first quarter of the fiscal year 2023-24. These companies collectively eliminated around 21,838 job vacancies during this period. In contrast, they hired a significant workforce of 250,000 individuals in the previous year, as per a report in News18.

The current fiscal year is projected to offer job opportunities to only 50,000 to 100,000 individuals. The reasons behind this trend include challenges in acquiring new projects, a shift in employee utilization strategies, and a focus on optimizing workforce efficiency and technology integration.

Global tech giants like Meta, Apple, Amazon, Microsoft, Netflix, and Alphabet have also displayed a similar trend with minimal hiring activity, collectively hiring only 1,400 new employees until July 2023. This reduction in hiring activities reflects the industry's efforts to adapt to changing market dynamics and technological shifts.

Layoff In Tech Sector

The tech industry has faced a series of challenges that have led to significant job cuts across various companies. Uncertain global economic conditions, shifts in market dynamics due to the Covid-19 pandemic, and other factors have contributed to mass layoffs in the tech sector.

In January 2023, nearly 100,000 tech workers lost their jobs globally, with an average of over 3,300 tech employees losing their jobs daily across more than 288 companies worldwide. Major tech companies like Amazon, Microsoft, Google, and Salesforce have been among those making significant job cuts. Amazon led with 18,000 job cuts, followed by Google with 12,000 and Microsoft with 10,000, reported The Times Of India.

The trend of layoffs in the tech sector has been seen across various domains, from e-commerce to edtech. Companies like OLX Group and edtech firm Byju’s have also implemented mass layoffs, with OLX reducing its workforce by 15% and Byju's reportedly asking 1,000 employees to leave.

The trend of job cuts is part of larger efficiency and cost-cutting measures taken by companies facing economic uncertainty and global challenges. Mark Zuckerberg, the CEO of Meta (formerly Facebook), announced 11,000 layoffs in 2023 as part of an efficiency drive. This reflects a broader pattern of tech companies aiming to streamline operations and adapt to changing market conditions.

The tech industry has seen a substantial number of job cuts in recent years, with over 154,000 job cuts announced by more than 1,000 companies in 2022. The cumulative effect of layoffs between 2022 and 2023 has resulted in more than 250,000 employees being affected across the tech sector.

Demand In Non-Tech Sectors

The rapid transition to digital operations across various industries has created a significant demand for technology talent in non-tech sectors. This surge in demand for tech skills within non-tech industries has led to a substantial increase in tech hiring. According to a report from TeamLease, there have been more than 100,000 active job openings in tech roles within non-tech industries in recent months.

This shift has been driven by several factors. The sudden need for digital transformation prompted industries traditionally not associated with technology to seek tech professionals to support their operations. Additionally, a series of layoffs in the tech industry has prompted skilled tech workers to explore opportunities in other sectors. As a result, there has been a notable movement of tech personnel from niche tech sectors to non-tech industries.

Currently, the non-tech sector in India employs over 765,000 tech professionals, reported The Economic Times.This reflects the growing importance of technology skills in virtually every industry. The demand for tech talent in non-tech sectors is unprecedented, leading to a significant growth in job opportunities for tech professionals.

One interesting trend is the higher incremental growth in salaries within non-tech industries compared to technology-centric companies. This suggests that non-tech industries are recognizing the value of tech talent and are willing to offer competitive compensation to attract and retain skilled professionals.

Overall, the fusion of technology with non-tech industries is reshaping the job market and providing new avenues for tech professionals to contribute their skills across various sectors.

Also Read: 'Ethnic Cleansing Conducted By The State": Punjab & Haryana HC On Nuh Demolitions