Tech layoff: In the midst of bad economic conditions, the whole world is facing the brunt of layoffs for almost 2 years. Especially in the Information Technology (IT) sector, the dominance of layoff is so much that even the world’s renowned companies are not untouched by it. 

If we look at 2023, the rate of firing has increased instead of decreasing till now. In the first seven months, it broke last year’s record.

According to a report of Business Today, so far in 2023, tech companies have laid off more than 2.26 lakh employees. This figure is becoming more concerning as it is crossing over the last year mark. Last year tech companies laid off nearly 200,000 people, as reported in several research reports.

Broke last year’s record

According to Alt Index, all tech companies worldwide laid off 2.02 lakh employees in the entire 12 months of 2022, while the number crossed as 2.26 lakh employees lost their job in the first seven months of 2023. This means that not only has the record for the most layoffs in a year been broken, but the cases of layoffs have risen by 40 percent in these seven months. 

Reason for layoff

Many of the world’s leading companies including Google, Facebook’s parent company Meta, Microsoft, and Amazon are being part of lays off this year. Though several factors are responsible for the act, the biggest reason for this is global economic uncertainty.  The world is facing record-breaking global inflation, supply chain challenges, and declining sales on the front, adding to the troubles for tech companies.

If we combine the data of the last two years then it tells that more than 4 lakhs employees have lost their jobs in the period. 

Also Read: Independence Day speech: PM Modi announces Vishvakarma Scheme; Know eligibility, benefits