Microsoft to Amazon, layoffs dominate tech world in 2023
The tech
industry has seen a surge in job cuts in early 2023 as companies prepare for a potential recession and slowing sales growth. Microsoft, one of the biggest
names in the industry, announced plans to cut thousands of jobs in its human
resources and engineering divisions. The exact number of layoffs has not been
disclosed, but sources suggest it will be significantly larger than in previous
rounds at Microsoft.
Amazon,
another major player in the tech industry, also announced plans to cut 18,000
jobs among its corporate ranks. CEO Andy Jassy stated that these changes will
help the company pursue long-term opportunities with a stronger cost structure.
Amazon is not alone in its decision to trim its workforce, as other companies
such as Vimeo, ShareChat, Cisco Systems, Intel, Meta Platforms, Qualcomm, and
Salesforce have also announced layoffs.
According to
a report, Amazon, Vimeo, and Salesforce were among the companies that sacked a
total of 30,611 people in the first six days of January 2023. Google-backed
ShareChat, for example, announced plans to lay off around 20% of its employees,
citing the growing consensus that the current global economic downturn will be
a sustained one. Salesforce, a major software company, also announced plans to
lay off about 10% of its employees and close some offices as part of its
restructuring plan.
Other
companies such as Twitter, Meta, HP, Byju's, Academy, Goldman Sachs, Moran
Stanley, Intel, Johnson & Johnson, and Snapchat have also announced
layoffs. These job cuts come as a reminder of the ongoing shift towards
automation and artificial intelligence in the tech industry, as well as the
economic downturn caused by the COVID-19 pandemic. The impact on employees and
the industry as a whole will be significant, and it remains to be seen how
these companies will address the long-term consequences of these layoffs.