Numerous sectors, particularly the technology industry, have been significantly impacted by the economic downturn. The industry let go of 226,000 workers in 2023, indicating an increase of nearly 40% compared to the previous year's figures in 2022.
While the tech sector experienced a staggering amount of job reductions in the previous year, 2023 has proven to be even more challenging.
The extensive series of job cuts has resulted in the closure of numerous workplaces, transforming 2023 into the most challenging year on record for the tech sector, according to information from AltIndex.com.
From January to December 2022, the number of layoffs by tech companies reached 164,744 employees, which is nearly eleven times higher than the 15,000 reported the previous year, as indicated by data from Layoffs.fyi.
In January, an astonishing 75,912 individuals were left jobless, constituting nearly half of all the job reductions reported throughout 2022.
Following that, February witnessed a decrease with approximately 40,000 positions being eliminated. Despite a downward trend in the subsequent three months, tech firms still registered nearly 73,000 job terminations during this timeframe.
Subsequently, they have parted ways with close to 24,000 team members, resulting in a cumulative count of 226,117 job reductions as of the previous week, according to the report.
Confronted with an unpredictable worldwide economy, inflation, persistent supply chain challenges, and decelerating revenue expansion, tech enterprises escalated their layoff efforts in 2023, with industry leaders like Google, Meta, Microsoft, and Amazon taking the lead.
“But hundreds of other smaller tech companies, from retail and crypto to the transportation market, have also been forced to make painful cost-cutting measures, resulting in the highest number of layoffs the tech industry has ever seen,” the report stated.
The layoff statistics over the past three years paint an even grimmer picture. Data reveals that, starting from the outset of 2021, tech firms have parted ways with over 405,000 individuals.