The technology sector has faced a wave of layoffs in 2023, as companies struggle with slowing revenue growth, rising costs, and global uncertainties. According to data compiled by Layoffs.fyi, the online tracker keeping tabs on job losses in the technology sector, 669 tech companies have laid off about 193,098 staff so far this year, compared to 164,411 layoffs last year.
Here is a timeline of some of the most notable tech layoffs that have occurred in 2023:
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January
The year started with a bang, as Amazon announced it would lay off 18,000 workers, or 5% of its corporate staff, as part of a restructuring plan to focus on its core businesses. Google’s parent company, Alphabet, followed suit, saying it will be laying off 12,000 employees, or around 6% of its workforce, making this the second-largest round of layoffs since the onset of the pandemic. Microsoft also joined the fray, announcing it would be cutting 10,000 jobs, or approximately 5% of its workforce. Other tech companies that announced layoffs in January include IBM (8,000), SAP (6,000), Salesforce (4,000), and Airbnb (3,000).
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February
The layoffs continued in February, as Twitter said it would slash 2,500 jobs, or about 7% of its staff, as part of a strategy to streamline its operations and focus on its most profitable areas. Uber also announced it would eliminate 2,000 jobs, or about 5% of its workforce, as it faced regulatory challenges and competition from rivals. Other tech companies that announced layoffs in February include Intel (1,500), Dropbox (1,000), and Spotify (800).
• March
March saw another wave of tech layoffs, as Facebook’s parent company Meta said it would cut 6,000 jobs, or about 4% of its staff, as it shifted its focus to the metaverse and virtual reality. Oracle also said it would lay off 5,000 workers, or about 3% of its workforce, due to declining revenue and cloud competition. Other tech companies that announced layoffs in March include Cisco (4,000), Dell (3,000), and Snap (2,000).
• April
April brought some relief to the tech sector, as the pace of layoffs slowed down. However, some tech companies still announced job cuts, such as Shopify (4,000), LinkedIn (716), Clubhouse (50%), and Neato Robotics (100%).
• May
May saw another surge in tech layoffs, as Meta announced another round of job cuts, laying off about 6,000 people. About 21,000 people have lost their jobs at Meta since November. JioMart also laid off over 1,000 employees on May 22 and plans to cut as many as 9,900 more roles over the coming weeks. Other tech companies that announced layoffs in May include Rapid (70%), Meesho (15%), and Bishop Fox (13%).
Conclustion
The outlook for the rest of the year remains uncertain for the tech sector. While some analysts predict that the worst is over and that tech spending will rebound in the second half of the year, others warn that the ongoing supply chain issues, inflation, and geopolitical tensions could trigger another downturn.
For tech workers who have been laid off or are at risk of losing their jobs, finding new opportunities may be challenging in a competitive market. However, some experts suggest there is still demand for skilled IT professionals, especially in areas such as cloud computing, cybersecurity, and artificial intelligence.
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