In a move that has sent shockwaves through the Indian job market, several major companies have announced layoffs in 2023. The layoffs are expected to impact thousands of employees across the country. According to the latest layoff data, more than 36,400 individuals in India have lost their jobs in the past few years. The wave of layoffs has already affected a number of tech giants such as Microsoft, Twitter, and Meta.
Why layoffs are happened?
Large tech companies are currently laying off staff for a variety of reasons.
First, since lockdowns were lifted, demand for IT services has declined, despite the boost in the workforce due to over-hiring during the COVID-19 pandemic.
Second, The Russia-Ukraine war is causing supply chain disruptions, higher interest and fuel costs, inflation, and cost-cutting measures for businesses.
Third, Fear of an impending global recession has also contributed to the layoffs. The Economist predicted a global recession in 2023, with the World Bank and IMF warning of slower growth, and weak consumer demand causing rising prices.
Fourth, The central bank has started raising interest rates to curb inflation, but the World Bank opposes rapid rate hikes. Finally, there is pressure from investors to cut costs and adopt more aggressive strategies to control spending.
Large tech companies are preparing for a difficult economic future, leading to significant unemployment.
The layoffs have sparked widespread concern and dismay, with fears about job security and potential impact on the economy.
Companies that Layoff employees
Qualcomm halted hiring due to a sharp drop in demand for phones with its chips, with double-digit percentage decline in shipments predicted for this year.
Intel is cutting costs, jobs, and slowing spending on new plants to save $3 billion, with the aim of saving up to $10 billion by 2025.
Apple has stopped hiring for many roles outside of research and development in an effort to reduce budgets heading into the new year.
Meta Platforms laid off 11,000 employees, and Twitter cut 3,700 in a cost-cutting measure by Elon Musk.
Microsoft also eliminated 10,000 jobs earlier this month, taking a billion-dollar charge from severance costs among other changes.
Additionally, Amazon is planning to lay off 18,000 employees and has already terminated 2,300 workers in Seattle.
Vimeo has announced that it will cut 11% of its global full-time workforce,
Adobe has eliminated about 100 jobs. HP to cut up to 6,000 jobs, reducing workforce by 10% in response to declining PC demand.
These layoffs are having a significant impact on workers and their families, as well as on the broader economy. Laid-off workers struggle with uncertainty, while economists fret over the economy’s long-term impacts.