Many people in the tech industry are beginning to be concerned as a result of Google laying off more than 6% of its workforce. Google, however, is not the only biggest name. Numerous multinational corporations, including Meta, Microsoft, Amazon, and others, have mass-fired employees.

Stats:

According to the Bureau of Labor Statistics, inflation is increasing in the Americas, leading to many tech and non-tech companies resorting to downsizing.

since November 2022, thousands of been laid off in America:

With 1,544,000 employees laid off so far, Amazon has reduced the workforce by 1%. Sales Force has fired 79 thousand employees, 3M has fired 90,000, and Snap has fired 6.5 thousand. Shopify and Alphabet Inc.’s workforces have reduced by 6%. Meta has reduced their workforce by 13%, Microsoft by 5%, and Netflix by 4%, respectively.

Why are these people being fired on such short notice? and how does it impact the Indian economy?

• Covid Mass Hiring:

During the pandemic, many people were staying at home, and online activity was at all times high, as people were relying on it for entertainment and groceries.

At that time, more people needed to be involved in system management, but once the world opened, people moved to the real world. Since then, there has been a significant decline in e-commerce usage, therefore the need for such a large workforce is unnecessary.

• Investor Impacts:

Investors also anticipate that businesses will make adjustments to prevent losses during such challenging economic times. Tech layoffs are the most certain way to cut costs when these investors put pressure on others to make changes or face consequences.

• Layoff Means More Profit:

Over time more than 1.5 lakh employees have been laid off over email by many big-name companies. The stats are claimed to be guided by the macroeconomic environments.

These macroeconomic environmental conditions are the result of combining a variety of country-specific economic circumstances. Companies have resorted to cutting costs by firing some employees in order to maintain excellent working conditions for their current employees in the face of the US recession.

In the industry, there is a myth that layoffs equal more profit. Although numerous studies have shown this to be detrimental, this myth persists, and IT layoffs are rising worldwide.

• Maturity Of The Company:

As per many experts, this is a normal phase in many companies’ lives. when companies get to the saturation point where they are unable to create any more new customers. At this point, there isn’t a need for any more production but to maintain continuity. Sometimes companies also try to diversify their product range and inconsequential loss creates layoff situations.

What does it mean for India?

India sources a large number of Indian engineers and doctors overseas, so this layoff trend does impact Indians on a large scale. LinkedIn is filled with stories and resumes.

There is still a ray of light in recession times, as these professionals are able to leverage their experience to find excellent opportunities in other ventures. To capitalise on their experience many start-ups and middle range combined may extend offers.

Description:

Google fires 12000. Why are so many employees being fired? What does it mean for Indian engineers? Read the reason for tech-layoffs in America.