Top Reasons to Cut over 4 lakh IT and EdTech jobs in 2023
A total of 428,335 people are lost their jobs by the 1,992 layoffs at tech companies, according to the True Up Report Layoff 2023 (1,187 people every day).
Top Reasons to Eat over 4 lakh IT and EdTech jobs in 2023
Though 2023 is known as the “layoff years” in the IT and Edtech industries, with over 4 lakhs of workers losing their employment for a variety of causes, you might be surprised by these four.
A total of 428,335 people are affected by the 1,992 layoffs at tech companies, according to the True Up Report Layoff 2023 (1,187 people every day).
Employee overestimation, new technology, generative AI, ethical code violations, global financial conditions, and annual performance assessments were among the reasons given by the corporations for their 2023 layoffs. Details can be found below.
Overestimation of Demand
Post-COVID job losses, according to MoS IT Rajeev Chandrasekhar, were caused by an overestimation of demand. “If we look at the tech space, layoffs happened after COVID,” he said. Large corporations like Google, Microsoft, Meta, and even smaller startups experienced it. When the globe was coming out of the COVID-19 pandemic, everyone thought that the rise in digitalization would last forever. Many believed that remote employment would become the norm.
He went on, “It’s possible that some businesses overestimated the demand for and consumption of digital goods, which caused organizations to resize and adjust their rights.”
New Technology: Generative AI
Worker layoffs are occurring worldwide as a result of generative AI. Paytm recently revealed that it was laying off more than 1,000 workers in order to reduce costs.
“With AI-powered automation, we are transforming our operations and driving efficiency across growth and costs by eliminating repetitive tasks and roles. This has resulted in a slight reduction in our workforce within marketing and operations,” the spokesman stated.
This week, Google revealed that its progress in artificial intelligence might lead to a reorganization of the ad sales division, potentially affecting Google employees working in this division.
With the development and release of new AI-based technologies, new ads that are effective for consumers will be automatically suggested and created.
Consequently, the business intends to automate specific tasks within the ad sales and customer support divisions. There are 30,000 employees in the Google ad sales section, and the development of AI has put their careers in jeopardy.
Slow Business
Byju’s reported numerous employee layoffs this year. Akansha Khemka, a worker at Byju from Kolkata, broke down in tears in a video message earlier this year, claiming that the firm was pressuring her to quit and threatening to stop paying her after August 1. She has been requesting assistance from the government in order to protect workers from a “toxic” workplace environment.
Annual Performance Reviews
200 workers were laid off by L&T Technologies. “We conduct annual performance reviews as a standard process to assess our workforce’s capabilities every year and act appropriately based on skill sets and performance,” a company spokeswoman stated.
The representative went on, “This is essential for the maintenance of our high standards of service delivery.”
Similar to this, PhysicsWallah (PW) recently let go of about 120 workers as a result of a performance evaluation. “At PW, we regularly assess performance through midterm and end-term cycles,” stated Satish Khengre, Chief Human Resources Officer of PhysicsWallah.
“Less than 0.8 percent of our workforce—ranging from 70 to 120 individuals with performance concerns—may be asked to transition for the cycle ending in October,” continued Satish Khengre.
Our major goal is still building a cohesive, productive team. In order to further demonstrate our dedication to expansion, we intend to add 1,000 new hires within the next six months, according to Satish Khengre.
200 workers were let off by the top provider of digital skills in the world because of subpar work.
Employees in the operations, marketing, and sales departments at Simplilearn have been touched by the layoffs. But layoffs have come out of nowhere.
Barclays intends to reduce employment by 1500–2,000 people in an effort to save costs. The bank had tried in the past to cut costs in recent years. In its retail and investment banking divisions, this cut also covered bonuses and employment.
Global Macroeconomic Conditions
Intel recently let go of 235 workers. “Intel is working to accelerate its strategy while reducing costs through multiple initiatives, including some business- and function-specific workplace reductions across the company,” a company spokeswoman stated.
By 2023, however, as a result of the global socioeconomic climate, IT giants like Snap, Microsoft, Twitter, TikTok, and Google will have either stopped new recruits or laid off people.
Breach of Ethical Code
Tata Steel terminated 35 workers for violating the company’s code of ethics. “The company has made significant acquisitions in the last few years and initiated a drive for an open culture,” stated N. Chandrasekaran, chairman of Tata Steel.
Workers are able to voice their worries. It can be a practice they observe at the firm or sexual harassment. He continued, “We are urging people to document their complaints.”
“A greater proportion of complaints resulted from the combination of these factors. We received 875 complaints last fiscal year, and 158 were related to whistleblowers, 48 were regarding safety, and 669 were on HR and other behavioural issues,” N Chandrasekhar added while addressing shareholders at Tata Steel’s annual general meeting.
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