In an interview with The Indian Express, MoS IT Rajeev Chandrasekhar said that the overestimation of demand led to post-COVID job cuts.
Rajeev Chandrasekhar stated, “If we look at the tech space, layoffs occurred post-Covid. It happened to companies like Google, Microsoft, Meta, and even smaller startups. When the world was emerging from Covid, everyone believed that the digital and digitization boom would be a permanent phenomenon. People thought that remote work would become a permanent setup.”
He further said, “Some companies may have overestimated the demand and consumption of digital products, leading to resizing and rightsizing of organizations.”
The year 2023 has been a year of layoffs over 3 Lakhs employees (1,569 people per day) were laid off in 2023.
The move of layoffs is part of a larger trend of tech companies cutting jobs and slowing hiring as investors become increasingly fearful of a recession. Tech companies have either frozen the hiring process or laid off many employees.
Disney has also begun more cuts, affecting about 2,500 workers. The firm announced in March that it would eliminate 7,000 jobs as it worked to rein in costs.
Meta is cutting employees in its business segments. The layoffs come a month after cuts targeted the Facebook parent’s core tech jobs and are part of a 10,000-employee layoff announced in March.
Amazon sacked 27,000 employees in the last three months. The major companies that laid off employees include Infosys, Amazon, Google, Byju’s, Wipro, and Salesforce laid off a maximum number of workers globally.
The consulting giant Accenture shocked the industry by announcing plans to trim its workforce by 19,000 globally including India over the next 18 months.
So far in 2023, there have been 1,288 layoffs at tech companies with 323,187 people impacted (1,569 people per day).
In 2022, there were 1,557 layoffs at tech companies 243,318 people impacted (667 people per day).