Amid adverse economic conditions, the entire world has been facing a recession for almost 2 years. Especially in the tech sector, the epidemic of retrenchment is so high that even the world’s famous companies are not safe from it. If we look at the year 2023, instead of slowing down, the layoff rate has increased this year. It has broken the entire year’s record in the first seven months.
Many people became unemployed last year.
In a Business Today news report, the figures for the alt-index retrenchment have been reported. According to him, so far in the year 2023, tech companies have laid off more than 2.26 lakh employees. These figures become alarming as the previous worst layoff record was set last year and tech companies are expected to cut nearly 200,000 jobs in 2022.
Last year’s record was broken.
According to Alt Index, during the full 12 months of 2022, all tech companies around the world laid off 2.02 lakh employees, while the number has crossed 2.26 lakh in the first seven months of this year. This means that not only has the record for the most layoffs in a year already been broken, but there were 40 percent more layoffs in those seven months than in the entire 12 months of last year.
Due to these reasons, companies are forced to lay off employees.
The termination companies include many of the world’s leading companies. These include Google, Facebook’s parent company Meta, Microsoft and Amazon. There are many reasons being given for the massive layoffs in the tech sector that have been going on for almost two years. Global economic uncertainty is the main reason for this, while the world’s record-breaking inflation, supply chain challenges and declines on the sales front are also adding to the problems for tech companies.
More than 4 lakh jobs have been lost so far.
The phase of layoffs in tech companies around the world began in the year 2021. In view of the worsening situation, tech companies started laying off in the last months of 2021, which intensified. In the year 2021, about 15-20 thousand cases of layoffs were recorded in tech companies. Thus, over 4 lakh people have lost their jobs in the tech sector during the last 2 years.
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