In PICS| Big IT Firms To Start-Ups, A Throwback To Layoffs In 2023
From the IT sector to edtech to start-ups, several industry players conducted layoffs in 2023 citing global headwinds and the funding winter among the major reasons behind these decisions.
Several media reports suggest that till early December 2023, the tech industry has seen nearly 2,40,000 job cuts, marking a growth of 50 per cent over the layoffs seen a year earlier. Getty
E-commerce giant Amazon laid off close to 18,000 employees in 2023, with job cuts in the firm’s music division and Alexa business. Getty
Further, Spotify also announced early in December that it intends to lay off 17 per cent of its workforce to reduce costs. Getty
In India, the start-up sector saw about 11,000 employees lose their jobs in the first half of 2023, about 40 per cent more than the layoffs in the sector reported in the same period a year earlier. Getty
Byju’s, one of India’s major edtech start-ups, laid off nearly 5,000 employees as part of business restructuring exercises around October 2023. Getty
Multiple factors are at play here that explain why companies have resorted to downsizing in the last two years. Getty
According to data from market intelligence firm, Tracxn, Indian start-ups managed to collect only $5.48 billion in funding in the first half of 2023, displaying a major decline from the $19.5 billion raised during the same period a year earlier. Getty
As such, founders have resorted to slashing the workforce as a means of cost-cutting measures to make up for the lack of funding available in the economy. Getty
Also, technological advancements, evolving consumer choices, and a perpetual need for operational efficiency play a major part in impacting the changes in the workforce. Getty
Further, the tech industry is being plagued by a dampened growth in revenue amid an economic slowdown at the global level, caused by factors like the Russia-Ukraine conflict and inflationary pressures. Getty