Year-Ender 2023: Take A Look At Layoff Landscape

In 2023, various sectors, including IT, edtech, and startups, implemented layoffs, attributing their decisions to global challenges and the funding winter as significant contributing factors.

 

According to multiple media reports, as of early December 2023, the technology industry has experienced approximately 240,000 job cuts, indicating a 50 percent increase compared to the layoffs witnessed in the preceding year.

Amazon, the e-commerce giant, reduced its workforce by nearly 18,000 employees in the year 2023, implementing job cuts in both the company's music division and the Alexa business. Additionally, in early December, Spotify disclosed its plans to cut 17 percent of its workforce as part of a cost-cutting initiative.

In the initial half of 2023, the startup sector in India witnessed the termination of approximately 11,000 employees, marking a 40 percent increase in job losses compared to the corresponding period in the previous year.

Several factors have contributed to the decision by companies to engage in downsizing over the past two years. In October 2023, Byju's, a prominent edtech startup in India, underwent business restructuring measures that resulted in the layoffs of approximately 5,000 employees.

In the initial half of 2023, Indian startups secured a total funding of $5.48 billion, marking a significant drop from the $19.5 billion raised in the corresponding period the previous year, as reported by market intelligence firm Tracxn.

In response to a dearth of available funding in the economy, founders have opted to reduce their workforce as a strategy to implement cost-cutting measures. Technological progress, shifting consumer preferences, and an ongoing demand for operational excellence significantly contribute to influencing transformations in the workforce. Moreover, the technology sector is grappling with sluggish revenue growth due to a worldwide economic downturn triggered by factors such as the Russia-Ukraine conflict and inflationary pressures.