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Tech industry in turmoil: Layoffs on the rise as companies struggle to stay afloat

Economic slowdown has left a huge impact on the tech industry, as top companies including Amazon, Twitter, and Salesforce announce layoffs and cost-cutting measures in 2023

Edited By: India TV Business Desk New Delhi Published on: January 18, 2023 18:45 IST
Twitter, layoffs, amazon, microsoft firings
Image Source : UNSPLASH According to statistics by Layoffs. FYI, 91 tech companies around the globe fired around 24,151 employees in January 2023.

The ongoing economic slowdown is making it difficult for the tech sector to survive. With the post-pandemic market effects, sluggish revenue growth, and recessionary uncertainty, 2022 was a challenging year. Things were bad, but it doesn't seem like anything will change in 2023. Recession fears are beginning to materialise, the market is still unsteady, and layoffs have returned. 

According to data from Layoffs.fyi, a website that tracks all layoffs at tech startups, in January 2023, 91 tech companies globally let go of about 24151 employees. Amazon, Cisco, Salesforce, Coinbase, and Ola are some major companies that have announced layoffs. 

ALSO READ: Amazon India begins layoffs, offers 5 months pay as severance

Amazon, one of the largest tech companies, has already announced and let go of thousands of employees worldwide. Teams are still being phased out of Twitter, and even Indian-based businesses like Ola and Dunzo are laying off hundreds of workers to cut costs. 

Amazon CEO Andy Jassy, in a recent blog post, confirmed that Amazon is continuing layoffs while firing around 18000 employees across global offices.

While this was happening, Cisco recently laid off about 700 workers. Salesforce announced the firing of around 10 percent of its workforce and closing some of its offices as a cost-cutting measure amid low revenue. Coinbase's CEO, Brian Armstrong, announced that the company plans to reduce its operating expenses by about 25 percent, including letting go of about 950 people. Ola is also laying off employees to reduce costs.

ALSO READ: Microsoft likely to lay off thousands of employees today to cut around 5% of its workforce: Reports

As the economic uncertainty continues to loom, it remains to be seen how many more companies will follow in the footsteps of these tech giants and resort to layoffs. It is a tough time for the tech industry, and employees face the brunt of it. 

FAQ 

Q: How many tech companies have laid off employees in January 2023?
A: According to statistics by Layoffs. FYI, 91 tech companies around the globe fired around 24,151 employees in January 2023.

Q: Which companies have announced the most significant layoffs in 2023?
A: Amazon, Twitter, Cisco, Salesforce, Coinbase, and Ola are some companies that have announced significant layoffs in 2023 due to economic uncertainty and a need to cut costs.

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