Tech layoffs in 2023: A timeline


After a year of tech companies announcing massive layoffs, 2023 looks set to be no different. In fact, he’s off to a worse start this year than 2022.

The problem: Big tech companies like Amazon, Oracle, Microsoft, Salesforce, and Facebook continued to hire heavily during the pandemic when lockdowns sparked technology buyouts to support the rise of remote work and e-commerce but is now facing declining revenues.

Tech giants aren’t the only ones cutting jobs. Smaller tech companies have also been caught up in the pandemic-induced hypergrowth and are currently suffering from its effects.

Global IT spending is expected to grow in 2023, according to market research firms, with enterprise software and IT services having the highest growth, but data center systems and telecommunications services growing less than 1%. Yes, and the overall increase is expected to be modest. Gartner. Meanwhile, hardware sales are projected to decline.

Ongoing supply chain problems, inflation and the war in Ukraine are also impacting both business and personal spending, leading to recession fears.

Data compiled by Layoffs.fyi, an online tracker that monitors job losses in the tech sector, laid off more tech workers in January than any other month since the pandemic began. it was done.

Tech employers have cut more than 150,000 jobs in line for 2022. And just in his first three weeks of 2023, layoffs have risen to more than 30% of his figure.

Prominent tech companies such as Amazon and Microsoft have already announced significant job cuts this year, but the silver lining for tech professionals is that many of the layoffs involve non-technical staff. In fact, the shortage of experienced technical talent has meant that companies have increased the salaries of IT professionals, with consultancy Janco Associates saying that the increase in In 2023 he predicts an 8% increase.

Below is a list (updated regularly) of the most notable technology layoffs the industry has experienced recently. You can find the 2022 layoffs tracker here.

January 2023

On January 18th, Microsoft CEO Satya Nadella confirmed in a blog post that the company will cut almost 5% of its workforce, affecting 10,000 employees.

The CEO has developed a downsizing strategy to align cost structures with earnings structures while investing in areas the company expects to show long-term growth.

The Seattle-based tech giant reported its slowest growth in five years in the first quarter of fiscal 2023. This was largely due to a 14% decline in net income to $17.56 billion due to a strong US dollar and continued decline in PC sales. This time last year. Increased cloud revenue helped soften Microsoft’s growth slowdown.

India-based social media startup ShareChat, which is backed by Google, said it will lay off 20% of its workforce as it prepares for looming economic headwinds.

“The decision to cut payroll costs was taken after much deliberation and in light of the growing market consensus that investment sentiment has remained very cautious throughout the year,” the spokesperson said. It was

The move is expected to affect more than 400 of the company’s approximately 2,200 employees. The company did not disclose the roles and exact number of employees affected by the decision.

Google’s parent company, Alphabet, has also announced it will layoffs at its Mountain View, Calif.-based robotics subsidiary, Intrinsic AI, removing about 20% of its workforce, or about 40 employees.

“This (downsizing) decision was made after considering changing priorities and long-term strategic directions. )’s recent strategic acquisitions and working with key industry partners, it will allow us to continue dedicating resources to our highest priority initiatives,” the company said in a statement.

Verily, an Alphabet-owned San Francisco-based life sciences company, is cutting its workforce by 15% to simplify its operating model. The move comes just months after the company raised his $1 billion.

The job cuts are part of the company’s One Verily program, which aims to reduce internal redundancies and simplify operations, according to an email sent to all employees by CEO Stephen Gillett.

As part of its new One Verily program, the company said it will move from multiple business units to one centralized product organization with an increasingly connected healthcare system.

Enterprise data management company Informatica has announced plans to lay off 7% of its workforce by the first quarter of 2023, the company said in a filing with the U.S. Securities and Exchange Commission.

The move by Informatica, headquartered in Redwood City, Calif., will result in approximately $25 million to $35 million in contingency costs in the form of cash outlays for employee transitions, notice periods, severance and employee benefits. Company filings show that

The company said it expects the layoffs to be completed by the first quarter of 2023, but added that there may be limited exceptions.

In early 2023, San Francisco-based Salesforce announced it would lay off about 10% of its workforce, about 8,000 employees, and close several offices as part of a restructuring plan.

In filings with the U.S. Securities and Exchange Commission (SEC), the company said it would require $1.4 billion to $2.1 billion in restructuring plans and will incur up to $1 billion in costs in the fourth quarter of 2023. made it clear that .

Salesforce co-CEO Marc Benioff said in a letter accompanying the SEC filing that as Salesforce’s earnings accelerated due to the pandemic, the company has overhired and is on the move. told employees it could no longer maintain its current workforce size due to the economic recession. “I take responsibility for that,” said Benioff.

Seattle-based tech giant Amazon has laid off more than 18,000 staff, announcing massive layoffs later this month. The news confirms that Amazon’s layoffs at all levels are expected to reach about 20,000, according to a December Computerworld article. Several teams are affected, but the bulk of the job cuts will be at Amazon Stores and People, Experience, and Technology (PXT). organization.

According to CEO Andy Jassy’s memo, the layoffs are the result of an “uncertain economy.” He also said that Amazon “has been hiring rapidly over the past few years,” but added that the layoffs would help the company pursue longer-term opportunities with a stronger cost structure.

Copyright © 2023 IDG Communications, Inc.


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