NEW DELHI — In 2023, more than 1,600 tech employees will be laid off per day on average globally, including in India, and the sackings have accelerated due to global economic meltdown and recession fears.
According to data from the layoffs tracking website Layoffs.fyi, over 1,000 companies laid off 154,336 workers in 2022.
The mass tech layoffs of 2022 are continuing into the new year, with Indian companies and startups leading the charge.
ShareChat (Mohalla Tech Pvt Ltd), a homegrown social media company, laid off 20% of its workforce due to uncertain market conditions, affecting over 500 employees.
ShareChat employs approximately 2,300 people and is backed by Twitter, Google, Snap, and Tiger Global.
After shutting down its fantasy sports platform, Jeet11, in December 2022, ShareChat laid off less than 5% of its employees.
This month, companies such as Ola (which laid off 200 employees) and voice automation startup Skit.ai dominated the headlines for laying off employees.
Dunzo, a local quick-grocery delivery service, has laid off 3% of its workforce as part of cost-cutting measures.
The year 2023 has started poorly for tech workers around the world, with 91 companies laying off more than 24,000 tech workers in the first 15 days of the month, indicating worse days ahead.
Amazon announced the layoff of 18,000 workers worldwide, including nearly 1,000 in India.
Meanwhile, LinkedIn is flooded with job postings, offers of assistance to laid-off friends and colleagues, and advice on overcoming career obstacles as several companies reduce their workforce to navigate an uncertain macroeconomic environment.
According to market research firm Sensor Tower, the LinkedIn app was downloaded an estimated 58.4 million times globally in 2022 across Google Play and Apple App Stores, a 10% increase from 2021.
The Aftereffects of a Recession
Recessions have the expected monetary and fiscal consequences: credit availability tightens and short-term interest rates fall. Unemployment rates rise as businesses seek to cut costs. This, in turn, reduces consumption rates, causing inflation rates to fall.
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