Having comes to the reality of rapid over-hiring during the Covid-19 pandemic and growing economic uncertainty, tech workers across the globe are likely to face huge losses in 2023. This is coming as tech giants such as Amazon reduced their workforce by 18,000 representing over 5 percent of their entire 300,000 corporate staff.
Though Amazon’s job cuts exceed any of the mass headcount reductions at major companies, the eCommerce giant is not alone. Other companies such as Meta (11,000), Snap (1,280) and Twitter (3,750)—in recent months have cut jobs too.
Also, Salesforce, an American cloud-based software company said that it would lay off 10 percent of its workforce in the coming weeks as it restructures to cut costs. Recall, Twitter laid off half of its workforce when Elon Musk took over the company last year.
This is worrying as it appears the layoffs are already setting the tone for what hiring and firing will look like in 2023 in the global tech industry. No doubt, the job cuts, especially at Amazon are a sign of tough times to come for tech workers.
Meanwhile, several reports indicate that the Amazon job cut is already affecting its devices and books businesses.
Quoting the Amazon Chief Executive Officer, Andy Jassy, the reports noted that: “We are working to support those who are affected and are providing packages that include a separation payment, transitional health insurance benefits, and external job placement support,”.
In the words of Andy Jassy as quoted by Quartz: “Companies that last a long time go through different phases. They’re not in heavy people expansion mode every year…we sometimes overlook the importance of the critical invention, problem-solving, and simplification that go into figuring out what matters most to customers (and the business), adjusting where we spend our resources and time, and finding a way to do more for customers at a lower cost (passing on savings to customers in the process.”
Also, a critical analysis by Bureau of Labor Statistics data has shown that January is historically the worst month for layoffs. The analysis shows that during the first month of the year, most companies “are doing restructures, reorganizations and setting the direction.
According to Sarah Rodehorst, co-founder of Onwards HR, “It’s not just tech that’s hit by the wave. Across industries, be it investing giant Goldman Sachs or automaker Ford or beverage brand PepsiCo, several companies are reducing headcount. More firing and less hiring seem to be the mantra for 2023 as fears of recession loom.”