In the continued fallout from the turbulent year for tech that was 2023, it has come to light that over 240,000 jobs have been lost in the industry. This total has far surpassed last year’s tally and continues to rise, marking a 50% increase over the previous year. Major tech giants such as Google, Amazon, Microsoft, Yahoo, Meta, and Zoom initiated mass layoffs early in the year. Even startups across various sectors have followed suit, announcing cutbacks through the first half of 2023.
Despite a slowdown in layoffs over the summer and fall, the recent uptick in layoffs suggests that the process has once again picked up momentum. Although economists have advised against fearing a recession, the tech sector’s rebound has been slow to develop, forcing companies to continue to cut back on their workforces as they shift from a growth mindset to one focused on efficiency. The tech layoffs provide insight into the impact on innovation, the companies facing significant pressures, and the availability of skilled workers for businesses fortunate enough to be expanding.
At the start of 2023, 224,503 layoffs had been reported, exceeding the total number of tech layoffs in the entire year of 2022. The monthly rundown of layoffs in 2023 is as follows:
January: 89,554 employees laid off
February: 40,021 employees laid off
March: 37,823 employees laid off
April: 20,014 employees laid off
May: 14,928 employees laid off
June: 10,958 employees laid off
July: 10,589 employees laid off
August: 9,545 employees laid off
September: 4,632 employees laid off
October: 7,331 employees laid off
November: 6,956 employees laid off
December (up to article publication date): Not yet available
In the month of December 2023, multiple tech companies have made significant job cuts. These cuts indicate further challenges within the industry. Notable layoffs include Superpedestrian shut down its U.S.-based shared scooter operation and exploring a sale of its European business. Also, Bolt confirmed layoffs, reducing its staff by 29% in December.
The trend continued with Cruise cutting 900 employees, Zulily laying off more than 500 staff after closing fulfillment centers in Ohio and Nevada, and Etsy laying off 11% of its workforce due to a “very challenging macro and competitive environment.” Additionally, multiple companies such as Sunfolding, ZestMoney, Atmosphere, and Tidal have reportedly shut down operations or laid off significant portions of their workforce.
The sweeping layoffs continue to send shockwaves through the industry, with companies across various sectors feeling the impact. From the closure of unprofitable operations to the difficult decision to reduce their staffing, many companies have taken measures to adapt to the uncertain market conditions. The uncertain landscape of modern technology and business has made such decisions necessary for long-term survival.
The news of these layoffs has also affected the public’s understanding of the human impact of such events. For those who have been laid off, it represents a struggle to securely and safely transition to new career opportunities. Meanwhile, for the remaining businesses in this industry, it has highlighted potential shifts in risk management profiles in the challenging years ahead.
In conclusion, the tech sector appears to be in a continuous state of turmoil, with companies struggling to adapt to the ever-changing market landscape. However, these challenges also present opportunities for innovation and growth for the companies that can navigate this complex period successfully.
