Tech Companies Cutting Back on Personnel: Layoffs and Cost-Cutting Initiatives

Data on job cutbacks tracker website Layoffs.fyi indicated that 55,970 people across 173 organisations around the world had been laid off in the first three weeks of January. This amounted to 35 percent of the total layoffs that occurred in the preceding year, when tech companies started cutting back on personnel due to a lack of available funds and to ensure their economic viability in the face of macroeconomic uncertainties. Although not all businesses have resorted to layoffs, a significant number have already done so in the beginning of this year.

In January 2023, Alphabet Inc., the parent company of Google, announced in a staff memo that it is eliminating 12,000 jobs due to “a changing economic reality”. This is the latest of the tech giants to cut back on their workforce after an increase in hiring left them with an excess number of employees in a declining economy.

This week, Amazon began a new round of layoffs that is predicted to be the company’s most significant employment reduction since its inception 28 years ago. CEO Andy Jassy announced earlier this month that more than 18,000 employees will be impacted by the layoffs.

Swiggy is laying off 380 workers due to the suspension of expansion of food delivery services. CEO Sriharsha Majety said that over-hiring was a mistake. He stated that the rapid expansion of the company led to poor judgement in the process of taking on new employees. He also added that the job losses were necessary in order to protect the company’s financial health.

5 billion cost-cutting program. Last week, technology giant Microsoft Corporation declared that they will be eliminating 10,000 jobs and introducing a $1.5 billion cost-reduction initiative. The move is being made in an effort to reduce costs and become more competitive in the market.