Year Of Layoffs?

The mega layoffs announced by the US tech giants since the beginning of the year as well as the 22,000-plus job cuts effected through 2022 by our very own tech startups may not be the last time the world is hearing this sordid story this year

- Ashish Sinha

In early 2021, North America witnessed the 'great resignation. Employees in the US and across Europe were voluntarily quitting en masse in the wake of the pandemic, rising cost of living, inflexible remote-working policies or an overall change in the thinking process. Maintaining a greater work-life balance was cited as among the key reasons for mass quitting.

Fast-forward to 2023, the Silicon Valley, once considered the 'dream destination' especially for the Indian IT professionals, was jolted almost overnight. The year started with the announcement of the biggest layoff' in the history of tech-giant Google's parent firm Alphabet. It announced layoffs of 12,000 people or 6 per cent of the total workforce.

Alphabet CEO Sundar Pichai said senior executives would also be taking significant pay cuts. Global slowdown, funding winter, fear of recession, among others, were cited as the top reasons for this measure.

Ecommerce giant Amazon also announced in early January its plan to lay off more than 18,000 people or around one per cent of its total workforce (around 1,000 in India). This was the biggest job cut in the 28-year history of Amazon. Since November 2022, like Amazon, Meta, the parent firm of social media giant Facebook has been trimming its workforce.

Facebook has let go of nearly 11,000 employees, mostly from Instagram, Facebook and WhatsApp. This would amount to a 13 per cent cut in the overall workforce.

Google's rival Microsoft is set to fire 10,000 people by the end of March. Microsoft is also led by an Indian origin CEO Satya Nadella and employs thousands of Indians on work visa.

Experts say Indians on H1-B visa need not panic despite the fact that foreign nationals with H-1B visas have only 60 days following termination to find another job or leave the country.