What to expect from the layoff wave of 2023?
The layoff spree at tech giants is bleeding into a new year. It has been just three weeks since we entered 2023, yet the media is buzzing with disturbing numbers about people being laid off by tech companies: At least 104 tech companies let go more than 26,000 employees. This means, more than 1,600 tech employees were dismissed per day in the past couple of weeks. Let’s take a look at the top tech companies that are laying off aggressively.
On January 20, Alphabet, Google’s parent company, announced plans to reduce their workforce by 6%, which translates into roughly around 12,000 job cuts. This sweeping downsizing will have an immediate impact on U.S. staff and extend globally. CEO Sundar Pichai wrote to his employees that he takes “full responsibility for the decision that led us here”. These layoffs will affect teams in recruiting, engineering and products and various corporate functions worldwide.
The internet behemoth is devoted to assisting its employees in their job hunt. Pichai announced that the company will pay employees in the U.S. their salary (60 days minimum) during the entire notification period. Their severance payouts begin at 16 weeks’ salary plus two additional weeks for each year they worked at Google as well as accelerated vesting of Google stock units (GSUs). On top of paying out also the 2022 bonuses and unused vacation time, Google will provide six months of healthcare, job placement services, immigration assistance and other benefits to people affected.
For workers outside the U.S., support may be tailored to local laws and regulations. Affected employees in the U.S. have already been notified by email, while it may take longer due to different labor standards for those in other countries.
On January 18, Microsoft announced that it would be cutting 10,000 jobs, around 5% of its total workforce. This decision was made by Microsoft CEO Satya Nadella with the goal of focusing on potential opportunities in the short and long run. Although some employees will have to leave immediately, others will be given notice before their dismissal in line with country-specific employment laws.
“These decisions are difficult but necessary. They are particularly difficult since they impact people and their lives – our colleagues and friends. As a company, we are committed to providing our full support to all employees whose roles are eliminated during these transitions,” reads the CEO’s letter to employees.
For U.S. employees, Microsoft is offering comprehensive support packages including above-market severance pay, healthcare coverage for six months, vesting of stock awards for an additional six months and career transition services. Non-U.S employees would get advantages in line with applicable laws for their own country.
Amazon will soon begin what is expected to be its biggest round of job cuts ever, with CEO Andy Jassy saying the layoffs would impact over 18,000 employees primarily in its HR and stores divisions. According to Times Now, 1,000 Amazon India employees have already been asked to leave by mail. They have also been offered five months’ worth of severance pay.
The move comes after the pandemic led to a massive global expansion for Amazon, which saw the workforce grow from 798,000 to over 1.6 million by the end of 2021. However, with sales growth slowing, rising expenses and a deteriorating economic climate on the horizon, larger measures had to be taken. This includes a paused hiring of corporate staff and slowed development of warehouses as well as the closure of non-essential projects, such as a telehealth service and children’s video-calling projector.
Food delivery platform Swiggy announced that it is forced to lay off 380 employees due to the current economic climate and decreasing growth of its services. “We’re implementing a very difficult decision to reduce the size of our team as a part of a restructuring exercise. In this process, we will be bidding goodbye to 380 talented Swiggsters,” reads Swiggy’s chief executive and co-founder Sriharsha Majety’s email.
Consequently, the food delivery platform is aiming to close down some sectors as a cost-saving measure, with the meat marketplace being one of them. The affected personnel will receive at least three months of salary or a notice period which can be prolonged by an additional 15 days according to their time with the company.
According to Times Now, Spotify Technology will be the most recent addition to this league and begin layoffs this week to lower its operational costs. However, no confirmation has yet been received on the number of employees affected.
Layoffs are an unfortunate aspect of the employment market that can be tough to accept. However, there are ways to deal with them, such as career transition programs or finding a new job. It’s important to be as prepared as possible for whatever layoffs you may face by taking steps now to understand how it could affect you financially and emotionally so that you can plan ahead.
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