The year 2023 has brought significant challenges to the tech industry, with a notable increase in job losses worldwide. Companies such as Meta, BT, Vodafone, and others have announced their intentions to implement further reductions in their workforce, contributing to the growing number of layoffs. According to data from Layoffs.fyi, a platform that tracks job cuts, approximately 695 tech companies have laid off around 198,000 employees in 2023. This marks a substantial rise compared to the previous year, where more than 1,000 tech companies laid off over 161,000 employees.
Various reasons have been cited by big tech companies to explain these layoffs, including over-hiring, uncertain global economic conditions, and the ongoing impact of the Covid-19 pandemic. Meta, formerly known as Facebook, is reportedly planning another round of job cuts that are expected to commence soon. While the exact number of affected employees is unknown, it is estimated that approximately 6,000 individuals will be impacted by these layoffs.
In addition to Meta, other prominent companies have also downsized their workforce. The financial technology sector has also faced its share of challenges, with fintech unicorn Zepz deciding to lay off 420 employees, which represents 26% of its total workforce. Furthermore, BT Group, a UK-based telecommunications giant, has announced plans to eliminate a staggering 55,000 jobs by the end of the decade as part of its restructuring efforts. Similarly, global telecom carrier Vodafone aims to reduce its workforce by 11,000 employees over the next three years in order to streamline its operational structure at both the headquarters and local market levels.
Adding to the difficult environment, Microsoft has made the decision not to provide salary increases to its salaried employees, including senior leaders, for this year, further contributing to the challenges faced by tech professionals.
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