The rush of layoffs that began last year has yet to diminish, with executives across sectors having let go close to half a million employees worldwide.
The recent Silicon Valley Bank failure further opens the possibility of upcoming job losses and sharpens the risk of recession. And according to a comprehensive review of layoffs by Bloomberg News, these dismissals extend far beyond technology.
The tech industry has cut more than 200,000 employees since last year, while other industries like finance, consumer retail, communications/media, healthcare and pharmaceuticals have also been impacted.
The largest cumulative layoffs were initiated by these notable companies: Amazon, Meta, Alphabet, FedEx, Microsoft, Ikea, Philips, Royal Mail, Credit Suisse and Salesforce.
So far, more than 1,600 tech employees have been laid off on average per day in 2023, with tech companies thus contributing a large chunk to the overall reduced workforce. Despite this, other sectors are also cutting roughly 10% of their staffs as well.
In the past four months, hundreds of thousands who considered themselves secure in their positions have been put out of work. The downsizing phenomenon, which doesn’t seem likely to abate any time soon, can lead to stronger job insecurity and encourage behaviors like quiet quitting — doing the bare minimum required to stay in a job — and reduced motivation, creativity and innovation. Additionally, research shows that employees who have suffered a layoff are much more likely to voluntarily quit jobs in the future.
Regardless of the slashed workforce, the demand for tech talent will continue as companies strive to maintain their reputation and compete within the digital transformation happening across both the internal and external industrial landscape.