Last year’s techwide reckoning continues. The tech industry has seen more than 240,000 jobs lost in 2023, a total that’s already 50% higher than last year and growing. Earlier this year, mass workforce reductions were driven by the biggest names in tech like Google, Amazon, Microsoft, Yahoo, Meta and Zoom. Startups across many sectors also announced cutbacks through the first half of the year. And while tech layoffs slowed down in the summer and fall, it appears that cuts are ramping up yet again.
Tracking these layoffs helps us to understand the impact on innovation, which companies are facing tough pressures and who is available to hire for the businesses lucky to be growing right now. Unfortunately, it also serves as a reminder of the deeply human impact of layoffs and how risk profiles could evolve from here.
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Mass layoffs in the tech sector, which began in 2022, are continuing this year, with Microsoft announcing earlier this month that it will let go of 10,000 employees in an effort to reduce costs. “No one can defy gravity and gravity here is inflation-adjusted economic growth,” Microsoft CEO Satya Nadella said in a livestreamed discussion at the World Economic Forum (WEF) in Davos last week when announcing the layoffs.
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