While a wide array of companies have announced layoffs as a means of reducing spending in the wake of high inflation and a possible recession on the horizon, few sectors are hit as hard as the tech industry. Some tech companies began making staffing reductions last year, and others are preparing to do the same in 2023. Here’s a quick overview of how tech layoffs are going this year.
The Cause of Tech Layoffs in 2023
Overall, the layoffs in the tech industry are generally the ones making headlines, partially because the sector is large and many of the companies are household names. Additionally, some tech businesses experienced a news-worthy boom during the pandemic, primarily because people were stuck at home and many were working remotely.
Some of the tech layoffs are due to shifting economic conditions in general, as rising costs and concerns of a potential recession can influence any sector. However, others represent a contraction after tech companies expanded during the pandemic to meet significantly higher demand for various services.
Ultimately, tech companies had to examine anticipated revenue and cost figures. Since personnel expenses are typically some of the largest costs businesses shoulder, workforce reductions are often the clearest way to eliminate spending, particularly when it needs to happen quickly.
How Tech Layoffs Are Going in 2023
While 2022 saw its fair share of tech layoffs, 2023 is set up to see even more. Here’s an overview of what’s expected.
Alphabet (Google’s Parent Company) plans to eliminate approximately 12,000 positions, including a mix of tech jobs and other types of roles. That’s the largest single reduction in the company’s history. Amazon is scaling back significantly as well, with plans to cut over 18,000 employees. Microsoft is also laying off 10,000 people, and Yahoo is laying off about 20 percent of its workforce.
Zoom has plans to lay off 1,300 employees. Salesforce is planning to reduce overhead by eliminating about 10 percent of its staff, while software company SAP is downsizing by around 3,000 employees. Dell Technologies is looking at reducing its workforce by approximately 6,600, while DocuSign is eliminating about 700 positions. Ericsson is looking at laying off around 8,500, while IBM is cutting roughly 3,900 employees.
Music streaming giant Spotify is also making reductions, cutting around 6 percent of its workforce. Vimeo – a video-sharing platform – is laying off about 11 percent of its workforce.
Those planned layoffs are just a portion of what’s changing within the industry. Additionally, companies may announce more layoffs as the year progresses, depending on how the economy fares and other factors.
Are you concerned about the tech layoffs in 2023, or do you think it isn’t a concerning situation? Were you impacted by a tech layoff and want to tell others how it all turned out? Share your thoughts in the comments below.
Read More:
- How to Prepare for a Possible Layoff
- Four Steps to Get Your Career Back on Track
- Recent Layoffs Fuel Change in Tech Jobs to Climate Change
Come back to what you love! Dollardig.com is the most reliable cash back site on the web. Just sign up, click, shop and get full cash back!
Tamila McDonald is a U.S. Army veteran with 20 years of service, including five years as a military financial advisor. After retiring from the Army, she spent eight years as an AFCPE-certified personal financial advisor for wounded warriors and their families. Now she writes about personal finance and benefits programs for numerous financial websites.
Read More
Grocery Costs Keep Rising If you want to save on your food bill for the…
Income vs Inflation Paychecks are moving higher, but they are caught in a tangled dance…
It's hard to believe that Christmas is nearly here. However, it's that time of year…
With all the emphasis on stimulus checks, you might have missed some of the personal…
For those who use the United States Postal Service (USPS) on a regular basis, and…
For 2023, Easter is on Sunday, April 9. Many families in the United States plan…
Comments