Last year proved challenging for the technology sector, marked by an unprecedented wave of layoffs worldwide.
In 2023, more than 262,000 employees across more than 1,180 tech companies worldwide had been laid off during the year, 60% higher than 2022’s total.
More than two-thirds of the layoffs occurred in the United States, where major companies and startups alike have had difficulty maintaining their profit margins in an environment characterised by concerns about high inflation, rising interest rates, slowing economic growth, geopolitical tensions, and supply chain disruptions.
Staggering peak
Tech layoffs reached a staggering peak, with over 167 thousand employees laid off in just the first quarter of 2023. This figure not only set a record for the highest number of job cuts in a single quarter but also surpassed the total layoffs announced throughout 2022.
Tech firms such as Meta, Amazon, and Microsoft had trimmed their headcount, citing multiple reasons, including overhiring, a shift in priorities, restructuring due to rapid growth, and economic uncertainties facing firms in 2023 ahead of a looming recession.
Momentum for a tech sector rebound remains slow to build outside of bright spots within artificial intelligence and adjacent companies.
This results in tech companies continuing to cut back on their workforces and pivot from a growth mindset to one based on efficiency in the face of uncertain market conditions.
