Year 2023 has started on sour note for job seekers, there is a scarcity of new jobs in the market as tens of thousands of employees are being fired by companies , especially by tech giants, unicorns and startups. Employment scenario in 2023 has been a sordid tale as more than 2700 people have lost their jobs on a daily basis and over 1.53 lakh people have been impacted as per data.
Also those who are still into a job are facing either salary cuts or no hikes. In the meantime, many are hired , but are still struggling due to the onboarding delays. It is very difficult to find a job these days as Industry growth struggles with constraints of high inflation, geopolitical tensions , rate hike cycle and multiyear low employment rate and the cold war between US and Russia.
Tech Giants on firing spree
Tech giants such as Meta, Google, Amazon and Microsoft have laid off tens of thousands of people. Meta last year laid off 11,000 employees and Google trimmed its workforce by 6% to 12,000 layoffs. Microsoft has laid off 10,000 employees and e-commerce giant Amazon fired 18,000 employees.
Telsa CEO when he took charge of Twitter has fired significant number of employees from Social Media platform. Even Dell Technologies have fired 6,650 employees.
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More lay-offs in the offing
Meta , the parent of Facebook is said to be looking at firing 11,000 more employees from its company rolls, while Telecom giant Ericsson is planning to trim 8,500 jobs. Consulting firm McKinsey too has firmed up plans to let go 2,000 employees.
Ujjale De, Founder and CEO which facilitates organizations of any scale to build their employer brand and simplify & streamline the recruitment process,
“uncertainty will loom over the job market in the first half of 2023 as various sectors will witness uneven signs of recovery and impose a cautionary approach towards an impending recession.”
There are also other reasons for layoffs as IT Companies are witnessing normalization in demands post pandemic but however their valuations are squeezing. Startups are looking at doing conservative hiring strategies and are also concentrating on improving their bottom lines.
Further the inflated IT businesses are making massive layoffs as their market demands are normalizing and valuations are shrinking,
KarmaV founder stated,
“A reduced risk appetite of the investors is drying up aggressive funding and pushing startups and SMBs to focus on their bottom line and resort to a more conservative hiring strategy,”
Further, a key reason which has been enunciated that adoption of artificial intelligence such as chatbots have gained popularity as they drive productivity, lessen human work and allow them to take on more challenging tasks and are likely to be flexible and efficient.
Cycle of layoffs will end in second half on 2023
It is expected that cycle of layoffs will end in the second half of 2023 as KarmaV’s founder articulates that
“Infrastructural developments like 5G will accelerate smart city initiatives and transform manufacturing, transport, healthcare, and retail sectors. The homegrown startup ecosystem and R&D hubs will gain fresh momentum, and demands will swell for tech talents with edge computing AR/VR, data analytics, and AI expertise.”
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