Tech job losses

Tech industry sees astonishing surge in layoffs in 2023

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The tech industry saw a dramatic surge in layoffs in 2023, with a staggering 262,242 employees being let go by 1184 tech companies. This represents an increase of 50% compared to to the dismissals seen in the same industry in 2022, according to the data published by Layoffs.fyi, the online tracker keeping tabs on job losses in the sector.

Amazon led the significant workforce reductions last year, as the tech giant severed ties with more than 27,000 workers, followed by Accenture which laid off 19,000 employees.  Alphabet and Vodafone followed, surpassing the 10,000 benchmark, each with substantial job cuts of 12,000 and 11,000, respectively. Meanwhile, Facebook parent company Meta and Microsoft both announced 10,000 layoffs worldwide.

With 2023 behind us, in the first few weeks of 2024, nine tech companies have announced layoffs, affecting a total of 408 employees. It’s reminiscent of how 2023 began. Historical trends reveal that the early months (January, February, and March) typically witness a surge in layoffs as companies recalibrate their strategies for the year ahead.

“In the aftermath of the recruitment surge post-pandemic, its lingering effects remain evident. Tech firms overspent on growing their staff sizes. Now, they experience a pressing need to recalibrate their ranks and align to the needed levels” Anna Tavis, clinical professor in human capital management at New York University told Techopedia.

The relentless wave of tech layoffs has been a shock, considering the high numbers of jobs in well-known tech corporations with a reputation for offering good working conditions and well-paid positions. It is also a reminder that no industry is immune to the economic slowdown worldwide and continues to raise concerns over the broader implications of advancing AI technologies on employment.

Still, we have to wait and see how the tech labor workforce continues to change in the next coming years as the economy as a whole changes.