Layoffs in 2023 were 58% higher than in 2022; Experts say trend to continue

Layoffs in 2023 were 58% higher than in 2022; Experts say trend to continue

Layoffs In 2023: Even as the year 2022 started layoffs across tech companies in the world amid global economic uncertainties and overhiring during the coronavirus pandemic, the year 2023 continued the trend. The year 2023 witnessed a whopping 58 per cent more layoffs across companies as compared to 2022. Experts said the job market in 2023 was extremely dynamic — the domestic tailwinds slowed marginally by global headwinds creating an interesting environment for both HR heads and job seekers.

According to data from layoffs.fyi, a total of 1,175 tech companies laid off 2,60,509 employees in 2023 as compared with 1,064 tech companies letting go of 1,64,969 employees in 2022. This is 57.8 per cent more layoffs this year than that in 2022.

Amazon sacked the most number of employees this year letting go over 17,000 professionals, followed by Google (12,000), Meta (10,000), and Microsoft (10,000).

In India, Byju’s fired the most number of employees at 3,500 in two rounds, followed by Unacademy (12 per cent of total employees), ShareChat (500), Swiggy (380), Ola (200) and Physics Walla (120).

As of 2023, attrition rates stand at about 17-22 per cent.

What Experts Say

Munira Loliwala, assistant vice-president (strategy and growth) at TeamLease Digital, “Despite the ongoing wave of layoffs, reduction at the bottom of the pyramid in most sectors remains modest, ranging from 2 per cent to 3 per cent only as compared to the overall intake of talent. India is challenged to meet global expectations by fostering green software developments, expanding cloud networks, and enhancing customer interface solutions/services, impacting project execution timelines leading to lay-offs scheduled usually at the end of CY / FY.”

Jaideep Kewalramani, COO & head of employability at TeamLease Edtech, said, “The 2023 job market was extremely dynamic – the domestic tailwinds slowed marginally by global headwinds created an interesting environment for both HR heads and job seekers. The year witnessed a paradigm shift with strong ‘back to office’ signals from tech giants and polarized debates around work hours per week.”

He said the conversations in the boardroom to tackle the balance between growth, back to office, employability, skill development and talent retention shaped the way organisations approach hiring and firing.

“The fading COVID-19 pandemic impact is challenged by the latest strain JN.1 and may lead to some pause and think moments,” Kewalramani said.

Layoffs Trend In 2024?

Munira Loliwala said job losses and lay-offs will continue with the changing climate until 2026 though replacement hires will be centered at entry-level and mid-level roles in GCCs, data centres, tech centres in BFSI, automotives, and ER&D industries.