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


Image Source: UNSPLASH According to statistics by Layoffs. For reference, 91 tech companies around the world laid off about 24,151 employees in January 2023.

The ongoing economic slowdown is making it difficult for the tech sector to survive. 2022 was a challenging year due to the post-pandemic market impact, subdued revenue growth and recession uncertainty. Things were getting worse, but nothing seems to change in 2023. Recession fears are starting to materialize, markets remain volatile, and layoffs are happening again.

According to data from Layoffs.fyi, in January 2023, 91 tech companies around the world laid off about 24,151 employees, according to a website that tracks all layoffs at tech startups. Amazon, Cisco, Salesforce, Coinbase, and Ola are the major companies to announce layoffs.

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

Amazon, one of the largest technology companies, has already announced the layoff of thousands of employees worldwide. Teams is still being phased out of Twitter, and even India-based companies like Ola and Dunzo are laying off hundreds of employees to cut costs.

Amazon CEO Andy Jassy confirmed in a recent blog post that Amazon continues layoffs while laying off about 18,000 employees in offices around the world.

While this was happening, Cisco recently laid off about 700 employees. Salesforce has announced it will lay off about 10% of its workforce and close some offices as a cost-cutting measure amid low revenues. Coinbase CEO Brian Armstrong announced that the company plans to cut operating costs by about 25%, including laying off about 950 people. Ola is also laying off employees to cut costs.

Also read: Microsoft likely to lay off thousands of workers today to cut about 5% of workforce: report

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

Frequently Asked Questions

Q: How many tech companies laid off employees in January 2023?

A: According to statistics by Layoffs. For reference, 91 tech companies around the world laid off about 24,151 employees in January 2023.

Q: Which companies announced the most significant job cuts in 2023?

Ah: Amazon, Twitter, Cisco, Salesforce, Coinbase, and Ola are among the companies that have announced significant job cuts in 2023 due to economic uncertainty and the need to cut costs.

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