Tech Layoffs In Just 3 Months of 2023 Surpass Whole 2022 Figures; Q1 Sees Highest Layoffs Since Covid

Layoffs in just three months of 2023 have crossed that in the entire 2022. A total of 518 tech companies have laid off 1,71,858 employees between January 1 and March 23 this year, compared with the 1,61,411 employees sacked in 2022. Some of the major companies that let go of employees are global IT majors Google, Microsoft, Meta, Amazon and Accenture.

In 2022, a total of 1,052 tech companies had laid off 1,61,411 employees, according to layoffs.fyi.

According to the latest data from layoffs.fyi, a total of 517 tech companies have laid off 1,52,858 employees globally in 2023 till March 23. It does not include the latest layoffs by Accenture. If the latest layoffs of 19,000 employees by Accenture is also adjusted to the data, it adds up to 1,71,858 employees, thus surpassing the 1,61,411 layoff figure of 2022.

Company-Wise Layoffs

In 2023 so far, Amazon has laid off the highest number of employees — 27,000, in three tranches. It was followed by Meta, which has laid off 21,000 employees in two tranches, Accenture (19,000), Google (12,000), Microsoft (10,000), Ericsson (8,500), Salesforce (8,000), Dell (6,650) and Philips (6,000).

Month-Wise Layoffs

From January 2022 till now, January 2023 saw the highest number of layoffs — 270 companies sacking 84,714 employees. While, February 2023 saw 173 companies laying off 36,541 employees, followed by 79 companies letting go of 31,603 employees in March till 23rd of the month.

On a quarterly basis, the March 2023 quarter (Q1 2023) recorded the highest number of layoffs since the Covid pandemic — 522 companies laying off 1,52,858, according to layoffs.fyi. Additionally, Accenture has also laid off 19,000 during the ongoing March 2023 quarter, which is ending on March 31.

Sector-Wise Tech Layoffs

In 2022, the retail sector saw the highest number of layoffs at 20,914 employees, followed by consumer sector (19,856), transportation sector (15,977), healthcare (15,058), finance (12,899), food (11,288), real estate (9,932), and education (8,728). Sector-wise data for 2023 was not available with layoffs.fyi.

Daya Prakash, founder of TalentOnLease, said, “The slowdown is already posing threats to many industries, including the IT sector. The US banking crisis could increase the hiring freeze and result in mass layoffs. The potential impact of Silicon Valley Bank on the diminution of demand for IT services could reduce recruitment efforts by IT companies.”

He added that employers may focus on retaining current employees, which could significantly impact new talent recruitment. Employees must emphasise their skills to avoid being laid off due to the Silicon Valley Bank crisis. “SVB has been one of Silicon Valley’s most popular banks for startups and tech companies for several years due to its industry knowledge and flexibility. This collapse may exacerbate the funding crisis that had already begun to grip the startup sector.”

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