Nearly 2,00,000 employees let go worldwide in 2023 as job losses plague tech sector

Nearly 2,00,000 employees let go worldwide in 2023 as job losses plague tech sector

The year 2023 has posed significant challenges for tech professionals globally, as a substantial number of individuals have experienced unemployment. The count of tech employees affected by job losses has surged to nearly 200,000, encompassing both established Big Tech companies and emerging startups. Prominent companies like Meta, BT, Vodafone, and various others have declared their intentions to undergo additional workforce reductions in the upcoming months.

As per data compiled by Layoffs. FYI, approximately 695 technology companies have implemented workforce reductions resulting in around 198,000 job losses during the ongoing year. To provide context, in 2022, more than 1,000 tech companies laid off over 161,000 employees. This signifies a substantial increase in the number of tech professionals who have experienced job loss in 2023 compared to the previous year.

This distressing trend was particularly evident in January, with nearly 100,000 tech employees globally being affected. Major companies such as Amazon, Microsoft, Google, Salesforce, and others contributed to this significant number of job losses. Overall, it is estimated that around 360,000 tech employees have become unemployed between 2022 and May of the current year.

As major Big Tech companies continue to streamline their workforce, they have cited various reasons for these layoffs, including excessive hiring, uncertain global macroeconomic conditions, and the ongoing effects of the Covid-19 pandemic. Meta, formerly known as Facebook, is reportedly preparing for another wave of job cuts scheduled to commence in the following week. While the exact number of affected employees has not been officially confirmed, it is expected that approximately 6,000 individuals will be impacted by this round of layoffs.

Apart from Meta, other prominent companies have also implemented reductions in their workforce. For instance, Amazon India recently laid off approximately 400-500 employees from its Cloud division, AWS, as well as from People Experience and Technology Solutions (PXT), which includes HR and support functions.

Zepz, a prominent fintech unicorn, has recently made the difficult decision to lay off 420 employees, representing 26 percent of its total workforce. This move reflects the challenges faced by companies operating in the financial technology sector.

In a similar vein, BT Group, a major telecommunications company based in the UK, has announced plans to eliminate an astounding 55,000 jobs by the end of the decade. This indicates the significant restructuring efforts being undertaken by the company.

Meanwhile, global telecom carrier Vodafone has disclosed its intentions to reduce its workforce by 11,000 employees over the course of the next three years. The company aims to simplify its operational structure by streamlining both its headquarters and local markets.

In addition to these developments, Microsoft has made the decision not to provide salary increases to its salaried employees, including senior leaders, for the current year. This decision reflects the challenging environment and cost-saving measures being implemented by the company.