As the spectre of generative AI looms, the tech industry has unleashed a wave of job cuts, impacting millions of workers. Unprecedented in the holiday season, global tech companies, including start-ups, have shed more than 425,000 employees over the past two years. In India alone, over 36,000 employees have been affected (jobs cut) during this period.
GLOBAL LAYOFF LANDSCAPE
Citing challenging global macroeconomic conditions, Big Tech firms and start-ups alike have wielded the layoff axe. According to data from layoff.fyi, 1,178 tech companies globally have let go of 260,771 employees in 2023 (as of December 26). The preceding year witnessed 1,061 tech companies cutting loose 164,769 employees.
STAGGERING STATISTICS
On average, a staggering 582 tech employees lost their jobs every day in the past two years, equating to more than 24 workers every hour. The relentless wave of layoffs continues to reshape the industry’s workforce against the backdrop of evolving technological landscapes.
SECTORAL IMPACT
In 2023, the hardest-hit sectors were retail-tech, consumer-tech, and fintech, each witnessing significant employee cutbacks.
This seismic shift reflects the industry’s adaptation to challenges posed by AI and changing consumer preferences.
NOTABLE LAYOFFS
- Paytm recently laid off over 1,000 employees in a cost-cutting move and business realignment.
- ShareChat, a social media platform, underwent strategic restructuring, resulting in 200 employees, or 15% of its workforce, being let go.
- Loco, a game streaming platform, trimmed its staff by 36%, releasing 40 employees out of a total of 110.
- Edtech giant Byju’s undertook a business restructuring exercise, resulting in the layoff of 4,000–5,000 employees.
- Quick-grocery delivery provider Dunzo reportedly cut additional “150-200” jobs due to severe cash crunch, adding to the nearly 400 employees already let go earlier in the year.
As the tech industry grapples with the disruptive forces of AI, the human toll becomes evident in the form of widespread layoffs.
The intricate dance between technology advancement and job security underscores the need for proactive measures to support the evolving workforce. The coming years will likely witness a continued recalibration of the industry, raising questions about the delicate balance between technological innovation and employment stability.
