After significant job losses shook the sector last year, technology businesses have increased the pace of layoffs in 2023 in response to an unstable global economy and slow revenue growth. Here is a current timeline of the main significant layoffs and the causes of the unrest in Big Tech.
In 2023, the technology sector will experience a wave of job losses as tech faints like Amazon, Microsoft, Google, IBM, SAP, and Salesforce, along with several other smaller tech firms, announce massive layoffs. During the pandemic, the industry saw a rise in hiring as lockdowns sparked a tech buying frenzy to enable remote work and an increase in e-commerce.
However, because of a lack of skilled IT workers, continuous supply chain problems, inflation, and the ongoing crisis in Ukraine, which is having an effect on business and consumer spending and raising concerns about a recession, these companies are currently experiencing revenue declines.
Data collected by Layoffs.fyi shows that 494 tech firms have fired 138,820 employees so far this year, and the pattern is expected to keep going. High-profile tech firms like Amazon and Microsoft have announced massive job losses, despite the fact that the majority of the layoffs are non-technical workers. The best part for those in the IT industry is that companies are rising IT pay as a result of a lack of qualified candidates. According to consultant Janco Associates, raises for IT experts might increase by 8% in 2023.
Overall, it is anticipated that global IT spending would increase in 2023, with corporate software and IT services seeing the biggest increases. However, the overall growth is anticipated to be modest, with hardware sales expected to fall and data center systems and communications services expanding by less than 1%. Despite these challenges, the technology sector is still a vibrant and expanding one, and there are still opportunities for tech specialists to prosper in this fast shifting environment.
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In 2023, the technology sector will experience a wave of job losses as tech faints like Amazon, Microsoft, Google, IBM, SAP, and Salesforce, along with several other smaller tech firms, announce massive layoffs. During the pandemic, the industry saw a rise in hiring as lockdowns sparked a tech buying frenzy to enable remote work and an increase in e-commerce.
However, because of a lack of skilled IT workers, continuous supply chain problems, inflation, and the ongoing crisis in Ukraine, which is having an effect on business and consumer spending and raising concerns about a recession, these companies are currently experiencing revenue declines.
Data collected by Layoffs.fyi shows that 494 tech firms have fired 138,820 employees so far this year, and the pattern is expected to keep going. High-profile tech firms like Amazon and Microsoft have announced massive job losses, despite the fact that the majority of the layoffs are non-technical workers. The best part for those in the IT industry is that companies are rising IT pay as a result of a lack of qualified candidates. According to consultant Janco Associates, raises for IT experts might increase by 8% in 2023.
Overall, it is anticipated that global IT spending would increase in 2023, with corporate software and IT services seeing the biggest increases. However, the overall growth is anticipated to be modest, with hardware sales expected to fall and data center systems and communications services expanding by less than 1%. Despite these challenges, the technology sector is still a vibrant and expanding one, and there are still opportunities for tech specialists to prosper in this fast shifting environment.
Source:
Trueman, C. (2023, March 20). Tech layoffs in 2023: A timeline. Computerworld. Retrieved March 22, 2023, from https://www.computerworld.com/article/3685936/tech-layoffs-in-2023-a-timeline.html