Tech layoffs is once again trending on social media as major IT companies announced job cuts in the first month of the new year, triggering more uncertainty among employees and fears of recession. Google is the latest to lay off 12,000 employees, or about 6 percent of its workforce, while Microsoft said it will cut about 10,000 jobs, which is close to 5 percent of its staff. Similarly, Wipro also said it had to terminate 452 freshers on grounds of performance.
According to reports, companies such as Amazon, Vimeo and Salesforce among others terminated 30,611 employees in the first six days of January.
Amid the concerning scenario around the world and in India, Rajarshi Bhattacharyya, chairman and managing director of ProcessIT Global, told News18 that the majority of the Indian companies operating and catering to the Indian market need not worry as market demand was only increasing in the country. But he also said there did exist some “fear of impending recession globally" and multinational companies in India were making the decision to cut jobs.
“A few companies are laying off employees because they are unable to sustain themselves and do not want to take the load of additional manpower, which eats into their costs. Business units, which are not performing well, are left with no choice but to fire employees and retain staff in divisions that are bringing in profits," he said. “If the current workforce possesses redundant skill sets or is not skilled to meet the current and future business needs, the organisations prefer to hire skilled manpower and replace the existing low-skilled workers."
Madhu Sawant, head business, Techpartner Alliance, said last year’s layoffs, especially in MNCs, were continuing well into 2023 with rising inflation impacting consumer spending, cutting back on digital ad spending by advertisers, and the fear of a looming recession.
“The current firing of employees is also due to excess hiring during the pandemic as the market needs were such then, but do not exist now and this will have a short-term impact only," Sawant said. “Organisations are choosing a recruitment strategy where they hire candidates with new-age skill sets that help achieve their business goals of optimising customer experience, improving business operations, and increasing sales efficiency among others."
Sayeed Anjum, co-founder and CTO at greytHR, said not only in other countries but in India, too, thousands of employees were getting fired daily. “It’s not just the fear of recession; we now seem to be in the middle of a recession. While India is expected to be less impacted than other economies, there is no reason to be complacent or be unprepared for the worst," he said.
“Businesses will focus on operational efficiency, capital conservation and cost optimisation to balance the reduced sales and de-growth. Amid the gloom, this could be a golden opportunity for the Indian SaaS industry to help global businesses run efficiently and lower costs simultaneously. If it works, the increased sales could even compensate for the de-growth expected in the IT services exports," Anjum added.
Christopher Roberts, managing director at Engaged Strategy, said before a layoff, a lot of people believe they should keep a low profile and lie low. But according to him, this was not the right approach as it was a time to be noticed by key senior managers and work harder.
“During a layoff, spruce up your CV and highlight your achievements about what you have done to save the organisation money. Focus on what you have done so that a potential employer believes you can hit the ground running. Treat yourself like a small business and invest in your own growth and development. Taking strategic steps will help you market yourself well and make the organisers realise that they will be making a mistake by letting you go," he said.
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