Even as the year 2022 witnessed widespread layoffs across tech companies worldwide amid global economic uncertainties and overhiring during the coronavirus pandemic, the trend continued into 2023.
The year 2023 saw a staggering 58% increase in layoffs across companies compared to 2022. Experts attribute this surge to the highly dynamic job market, where domestic tailwinds were marginally slowed by global headwinds, creating a complex environment for HR professionals and job seekers alike.
According to data from layoffs.fyi, a total of 1,175 tech companies laid off 260,509 employees in 2023, compared to 1,064 tech companies letting go of 164,969 employees in 2022. This marks a 57.8% increase in layoffs this year compared to 2022.
Amazon led the pack, letting go of over 17,000 professionals, followed by Google (12,000), Meta (10,000), and Microsoft (10,000).
In India, Byju’s topped the list with 3,500 employees laid off in two rounds, followed by Unacademy (12% of total employees), ShareChat (500), Swiggy (380), Ola (200), and Physics Walla (120).
As of 2023, attrition rates stand at about 17-22%.
What Experts Say:
Munira Loliwala, Assistant Vice President (Strategy and Growth) at TeamLease Digital, stated, “Despite the ongoing wave of layoffs, reduction at the bottom of the pyramid in most sectors remains modest, ranging from 2% to 3% only as compared to the overall intake of talent.”
Jaideep Kewalramani, COO & Head of Employability at TeamLease Edtech, noted, “The 2023 job market was extremely dynamic, with domestic tailwinds slowed marginally by global headwinds, creating an interesting environment for both HR heads and job seekers.”
He emphasized that the year witnessed a paradigm shift with strong ‘back to office’ signals from tech giants and polarized debates around work hours per week.
“The fading COVID-19 pandemic impact is challenged by the latest strain JN.1 and may lead to some pause and think moments,” Kewalramani added.
Layoffs Trend in 2024?
Munira Loliwala anticipates that job losses and layoffs will continue until 2026. Replacement hires will be centered at entry-level and mid-level roles in GCCs, data centers, tech centers in BFSI, automotives, and ER&D industries.
