The start of 2023 has gotten jittery for job seekers. There is a shortage of new jobs as many companies are shedding tens of thousands of existing employees, particularly from tech biggies, unicorns and startups. So far in 2023, more than 2,700 people have lost their jobs every day. As of now, a total of over 1.53 lakh people have been affected, according to data. And those who are fortunate enough to still have a job under the till may either face pay cuts or no raises at all. Meanwhile, many are being hired but are still struggling due to onboarding delays. The biggest killjoy for this winter of layoffs could be macroeconomic risks and recession fears.
The start of 2023 has gotten jittery for job seekers. There is a shortage of new jobs as many companies are shedding tens of thousands of existing employees, particularly from tech biggies, unicorns and startups. So far in 2023, more than 2,700 people have lost their jobs every day. As of now, a total of over 1.53 lakh people have been affected, according to data. And those who are fortunate enough to still have a job under the till may either face pay cuts or no raises at all. Meanwhile, many are being hired but are still struggling due to onboarding delays. The biggest killjoy for this winter of layoffs could be macroeconomic risks and recession fears.
It’s hard to find a job these days. Industry growth is struggling with constraints from high inflation, geopolitical tensions, rate hike cycle, years of low unemployment, the US-Russia Cold War, and more. There are fears that major economies are on the brink of recession.
It’s hard to find a job these days. Industry growth is struggling with constraints from high inflation, geopolitical tensions, rate hike cycle, years of low unemployment, the US-Russia Cold War, and more. There are fears that major economies are on the brink of recession.
Tens of thousands of people have recently been laid off from tech giants like Meta, Google, Amazon and Microsoft. Meta shocked last year with a massive 11,000 job cuts, while Google reduced its workforce by 6% to 12,000 layoffs, while Microsoft laid off 10,000 employees. And to make matters worse, e-commerce giant Amazon laid off 18,000 employees. Tesla’s CEO Elon Musk, who took over the helm of Twitter last year, also fired a significant number of people on the social media platform. Dell Technologies also implemented a mass layoff of 6,650 employees.
Tens of thousands of people have recently been laid off from tech giants like Meta, Google, Amazon and Microsoft. Meta shocked last year with a massive 11,000 job cuts, while Google reduced its workforce by 6% to 12,000 layoffs, while Microsoft laid off 10,000 employees. And to make matters worse, e-commerce giant Amazon laid off 18,000 employees. Tesla’s CEO Elon Musk, who took over the helm of Twitter last year, also fired a significant number of people on the social media platform. Dell Technologies also implemented a mass layoff of 6,650 employees.
More layoffs are imminent. Recently, Facebook’s parent company is said to be targeting another 11,000 job cuts, while telecoms giant Ericsson announced a plan to cut 8,500 jobs. The consulting firm McKinsey is also in a similar boat and is planning to lay off 2,000 employees.
More layoffs are imminent. Recently, Facebook’s parent company is said to be targeting another 11,000 job cuts, while telecoms giant Ericsson announced a plan to cut 8,500 jobs. The consulting firm McKinsey is also in a similar boat and is planning to lay off 2,000 employees.
If that’s not enough to worry job seekers, Amazon will reportedly cut employee pay by 50% in 2023. While Google now appears to be asking employees to share desks while they work. On the other hand, many employees are still waiting for their onboarding after months of employment at different companies.
If that’s not enough to worry job seekers, Amazon will reportedly cut employee pay by 50% in 2023. While Google now appears to be asking employees to share desks while they work. On the other hand, many employees are still waiting for their onboarding after months of employment at different companies.
According to Trueup.io data tracking tech layoffs, so far in 2023 there have been 534 layoffs at tech companies, affecting 153,005 people (2,732 people per day).
According to Trueup.io data tracking tech layoffs, so far in 2023 there have been 534 layoffs at tech companies, affecting 153,005 people (2,732 people per day).
The data showed that there were 1,535 layoffs at tech companies last year, affecting around 241,176 people.
The data showed that there were 1,535 layoffs at tech companies last year, affecting around 241,176 people.
The termination winter is expected to end in the second half of 2023. Click on the image to enlarge The termination winter is expected to end in the second half of 2023. Click on the image to enlarge
Ujjal De, Founder and CEO of KarmaV, which enables organizations of all sizes to build their employer brand and simplify and streamline the recruitment process, said: “In the first half of 2023, the job market will be uncertain as different sectors will be uneven Signs of recovery and forcing a cautious approach to an imminent recession.”
Ujjal De, Founder and CEO of KarmaV, which enables organizations of all sizes to build their employer brand and simplify and streamline the recruitment process, said: “In the first half of 2023, the job market will be uncertain as different sectors will be uneven Signs of recovery and forcing a cautious approach to an imminent recession.”
But these are not the only reasons for layoffs. IT companies are seeing post-pandemic demand normalization, but their valuations are under pressure. Additionally, startups are being pushed to look for conservative hiring strategies while focusing on improving their profits.
But these are not the only reasons for layoffs. IT companies are seeing post-pandemic demand normalization, but their valuations are under pressure. Additionally, startups are being pushed to look for conservative hiring strategies while focusing on improving their profits.
The KarmaV founder pointed out that post-pandemic bloated IT companies are making massive layoffs as demand normalizes and valuations plummet.
The KarmaV founder pointed out that post-pandemic bloated IT companies are making massive layoffs as demand normalizes and valuations plummet.
“Reduced investor risk appetite is drying up aggressive funding, pushing startups and SMBs to focus on their bottom line and resort to a more conservative hiring strategy,” he added.
“Reduced investor risk appetite is drying up aggressive funding, pushing startups and SMBs to focus on their bottom line and resort to a more conservative hiring strategy,” he added.
Another important reason could be the introduction of artificial intelligence such as chatbots, which are becoming more popular as they are likely to increase productivity, reduce human labor and allow more demanding tasks to be undertaken, and are likely to be flexible and efficient.
Another important reason could be the introduction of artificial intelligence such as chatbots, which are becoming more popular as they are likely to increase productivity, reduce human labor and allow more demanding tasks to be undertaken, and are likely to be flexible and efficient.
When does the winter of layoffs end? It is expected to end in the second half of 2023.
When does the winter of layoffs end? It is expected to end in the second half of 2023.
The founder of KarmaV believes that the rapid digitization will trigger a surge in demand and a market recovery is expected in the second half of 2023, especially for talents with experience in the BFSI sector.
The founder of KarmaV believes that the rapid digitization will trigger a surge in demand and a market recovery is expected in the second half of 2023, especially for talents with experience in the BFSI sector.
He added: “Infrastructure developments like 5G will accelerate smart city initiatives and transform the manufacturing, transportation, healthcare and retail sectors. The domestic startup ecosystem and R&D centers will receive new impetus, and the demand for technology talent with edge computing AR/VR, data analysis and AI expertise will increase.”
He added: “Infrastructure developments like 5G will accelerate smart city initiatives and transform the manufacturing, transportation, healthcare and retail sectors. The domestic startup ecosystem and R&D centers will receive new impetus, and the demand for technology talent with edge computing AR/VR, data analysis and AI expertise will increase.”
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage firms and not Mint. We advise investors to consult certified professionals before making any investment decisions.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage firms and not Mint. We advise investors to consult certified professionals before making any investment decisions.
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