There was a spate of mass layoffs, which have rocked the Information Technology industry globally. Studies showed that around 1,00,000 people were getting fired from their jobs in just the beginning of 2023, nearly 40 days, amidst an uncertain economic climate.
While the global carnage hasn’t left the Indian tech industry untouched, the experts are pretty confident that its impact on the Indian market will be limited, and the country is sure to remain a vital tech hub.
During the beginning of the new year, approximately 334 technology companies have laid off around 101617 workers globally.
Of these, around 35,000 job cuts have been done by the India-headquartered firms. This data depicts that globally 1,044 tech firms will cut nearly 1.60 lakh jobs in the year 2022.
Amidst the pandemic-driven enthusiasm, which revolves around technology and digitalization, the organizations have undergone a hiring spree. This came to a next-level screeching halt right towards 2022 as companies began announcing workforce reduction.
“Given the uncertain global economic scenario, we have seen tech companies across the world adopt a strategic layoff plan to restructure and align their workforce based on altered business goals. Some companies are re-evaluating their expenditure patterns to ensure a slightly conservative approach due to concerns related to a potential economic slowdown,”
-Yeshab Giri, chief commercial officer, staffing & Randstad technologies.
“We’re living through times of significant change, and as I meet with customers and partners, a few things are clear. First, as we saw customers accelerate their digital spend during the pandemic, we’re now seeing them optimise their digital spend to do more with less. We’re also seeing organisations in every industry and geography exercise caution as some parts of the world are in a recession and other parts are anticipating one.”
-said Microsoft CEO Satya Nadella.
The human capital solutions at Aon in India said that a couple of factors had driven the layoff spate around the world. The after-effects of the pandemic, Europe coming out of Brexit, and the Ukraine-Russia conflict. And all these things pointed to one thing, economically, across the globe, there was a global GDP shutdown. With all this happening and the input cost upsurging, big tech firms began seeing ever-increasing valuations- all because of one street perspective: if the cost of capital rises, the profitability will surely be a big hit.
Experts, however, are confident that India will foresee a limited impact. Global giants’ expectations will eye on moving the cut jobs towards a cost-effective location and immense talent place like India.
Tech giants also expect to pick up in recruitment in a nation like India by the end of 2023, which is most driven by the rollout of 5G services and enhanced focus on the country’s digitalization.
While layoffs are in itself pretty unfortunate, these are more restricted to the startup sector, or the IT product sector with an employee base of less than 2,00,000 people, in comparison to the four or five million people who’re employed in the Information Technology service sector today.
News Source- ThePrint
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