Top 10 Companies that Could Continue Tech Layoffs in 2023
Going by the current trend, it is highly likely that the corporate sector will witness layoffs in 2023
The corporate world is feeling the tremors with one company after another laying off its employees in large numbers. Only last week Amazon laid off around 10,000 employees, the largest in Amazon’s history. CEOs are taking this inevitable but drastic step to save the company’s finances from the wrath of the economic downturn. Ever since the world economy started going south during the second quarter of this year, the big-tech companies have implemented a slew of drastic measures which include diversifying the supply chain, halting digital transformation initiatives, and hiring freeze along with massive layoffs. Around 71% of CEOs globally predict that a recession will impact company earnings by up to 10% over the next 12 months. So it is only imperative that continuing with the current trend, the corporate sector will invariably witness massive layoffs in 2023. Here are the 10 companies that could continue layoffs in 2023.
Having laid 350 employees globally on Microsoft’s news-related products, it is highly likely that HCL might continue with further company layoffs in 2023.
It had laid off more than 1,280 which constitutes more than 20% of its workforce to reduce its costs. A report by Engadget, it had let go off around 1,300 out of 6,400 employees.
Having started trimming its workforce in 2021, by relieving 900 employees, in April this year, relieved another 1,200 to 1,500 employees and 3,100 more working in India and US in the next few months. As TechCrunch reports, it is expected to chop off 250 or more roles in the coming months.
Meta is one of the major big-tech companies that is badly affected by the economic downturn bringing its CEO’s net worth to nearly half. In a recent revamp Meta sacked 11,000 employees which constitute around 13% of the employee strength. And further, Mark Zuckerberg has hinted in a statement signaling a hiring freeze and cutting down discretionary spending.
The tech giant though doesn’t have any firing plans as of now seems it too had jumped into the bandwagon of economic slowdown-induced cost-cutting measures. Announcing that it wouldn’t consider reducing its headcount any time soon, its CEO Tim Cook said the company would implement a hiring freeze and it could last until late 2023.
Musk owned Twitter has already lost a major chunk of its workforce and going by his statements it is clearly evident that there would be more mass layoffs continuing into 2023.
After sacking 10,000 employees, last Tuesday announced its regional authorities in California that it would lay off 260 workers who work for data scientist and software development teams, to be effective in 2023.
Shopify laid off 10% of its employees in the month of June. Its CEO made clear that it had misjudged the post-covid trends resorting to over employment. He said he scaled up hiring expecting a proportionate increase in sales. Now that the market has taken a different turn, he said, he had to fire employees. If the economic condition worsens in 2023, it may lay off more employees.
In the month of July, it laid off 1,800 employees, 200 in August, and a whopping 1,000 more recently as part of realignment according to an Axios report. The sacked employees include contract workers, and members of the Modern Life Experiences (MLX) group, which was put together in 2018 to win back lost consumers. Going by the trend, though the sacked employees amount to a very small percentage, there is a very chance that it can duck to economic pressure.
After cutting down its headcount by 300 in June, it went for 150 more job cuts claiming to make adjustments in line with the revenue costs. In February it lost around 20,000 subscribers at the beginning of 2022 and is expecting a further decline in its audience base.
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