In 2022 and 2023, several sectors experienced a significant wave of layoffs, including information technology (IT), financial services, telecom, logistics and transportation, and manufacturing. The IT sector, in particular, was heavily impacted by job cuts.
Despite a hiring surge during the pandemic that resulted in over 150,000 people being employed in the IT sector in 2022, concerns about the economic recession led to mass layoffs. According to a study conducted by 365 DataScience, this trend continued into 2023, with more than 68,500 new job cuts reported in January alone.
The study highlighted Twitter as having the highest proportion of layoffs, affecting 58% of its workforce.
While other tech firms experienced layoffs that constituted only a fraction of their total workforce, further reductions are expected in 2023 to reach levels similar to the pre-pandemic era.
Interestingly, the largest group of laid-off employees did not consist of tech professionals; instead, 27.8% worked in HR & Talent Sourcing, with software engineers following closely at 22.1%. However, the percentage of layoffs within different IT roles varied among tech companies.
Regarding Twitter specifically, the study by 365 DataScience revealed that 23.7% of the laid-off employees were software engineers. This number increased to 28.8% for Amazon and reached a high of 35.5% for Google, the highest among major tech companies. Other tech roles affected by the layoffs included program managers, product managers, sales personnel, cloud & data center staff, data analysts, and data scientists, among others.
While approximately 90% of the layoffs occurred in the United States, where major tech companies are headquartered, the numbers indicate that only 0.9% of Indian workers were laid off. However, the layoffs have not shown signs of slowing down. Layoffs.fyi, an online tracker monitoring job losses in the tech industry, reported that so far this year, around 191,416 employees have been let go by 658 tech businesses, compared to 164,411 in the previous year.
In conclusion, the job market remains dynamic and subject to constant change. While certain roles may become obsolete due to technological advancements and automation, it’s important to recognize that new opportunities also emerge. The ability to quickly learn and apply new skills will be essential for individuals seeking to stay relevant and advance their careers in the ever-evolving job market.
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