Tech industry records over 226,000 layoffs in 2023, up 40% since 2022

Tech companies have let go of around 226,000 employees in the current year, which is almost 40 per cent higher than the number of layoffs in 2022, according to a report by the Economic Times.

According to data from AltIndex.com, while in 2022, the tech industry had experienced an increase in job cuts, this year has been more challenging for the industry. Numerous workplaces and offices have been closed or shut down along with the job losses.

Based on information provided by Layoffs.fyi, between January and December of 2022, tech firms laid off 164,744 workers. In January alone, 75,912 individuals received pink slips, contributing to nearly half of all the layoffs recorded in 2022. This is a significant rise from the 15,000 layoffs reported in the year prior.

Job cuts seemed to slow down in February, with approximately 40,000 positions being cut. However, layoffs persisted in the following three months, with tech companies reporting nearly 73,000 job cuts.

After this, an additional 24,000 employees were let go, creating a cumulative total of 226,117 layoffs as of the last week, according to the report.

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The uncertain global economy, inflation, persistent supply chain challenges, and a slowdown in revenue growth have all contributed to tech companies intensifying their efforts to reduce costs through layoffs in 2023. This trend has been especially driven by industry giants such as Google, Meta, Microsoft, and Amazon.

However, the impact has not been limited to these giants alone. The report highlighted that numerous smaller tech companies across various sectors, including retail, cryptocurrency, and transportation, have also been forced to cut costs, contributing to the highest number of layoffs ever recorded in the tech industry.

The figures for layoffs in the past three years reveal that since the beginning of 2021, tech companies have laid off over 405,000 individuals.

The influence of US tech giants was substantial in the wave of layoffs witnessed in 2023. Data also indicates that US companies have accounted for eight of the ten largest layoffs reported this year.