Just two months into 2023, 1.2L techies have been fired
What's the story
The year 2022 was a bad one for tech employees. It seems 2023 is even worse, and it's only been two months. This year, 417 tech companies have laid off around 1.2 lakh employees worldwide. In 2022, on the other hand, 1,046 tech companies fired about 1.61 lakh staffers. With the economic uncertainties persisting, we can expect 2023 to overtake that tally soon.
Context
Why does this story matter?
The layoff season in the tech world that began last year refuses to go away. The pandemic hiring frenzy and the post-pandemic reality have put tech companies in a precarious position. Survival is the goal of most companies, and they have identified layoffs as the way to go ahead. Tech employees are considered collateral damage in this race to survive.
Layoff
2023's list has 417 tech companies
In the first two months of 2023, tech companies laid off 1,19,034 employees. Although there are 417 companies on the list, the numbers aren't evenly distributed. The number of fired staffers ranges from as low as eight to as high as 12,000, per Layoffs.com. As you can imagine, we have some of the biggest tech companies in the world at the top.
Big tech
Google is at the top of 2023's layoff chart
Google leads the chart for most layoffs in 2023, with 12,000 employees fired, which is about 6% of its workforce. It is followed by its newest rival in search, Microsoft. The Seattle-based company axed 10,000 staffers. The two tech giants are followed by Stockholm-based telecom giant Ericsson, which recently announced its plan to reduce its headcount by 8,500 or 8%.
Reasons
Tech companies overplayed their hand during the pandemic
While announcing their decision to axe employees, most tech companies have given the same reasons. Overhiring, economic uncertainties, macroeconomic headwinds, cost-cutting, restructuring... the list goes on. In simple terms, companies overplayed their hand during the pandemic. They imagined the pandemic-like demand for their products and services to continue. However, they were in for a rude awakening.
More?
Are we done with layoffs?
The chances are we will see more layoffs in the tech sector. At least in the first two quarters. Meta is already gearing up for a fresh round of layoffs. It is unclear how many will be affected, but it won't be a small number. Things are expected to pick up in the latter half of 2023.