The tech industry, known for its dynamic nature, witnessed a series of mass layoffs across both major companies and smaller startups in 2023.
In fact, as the year draws to a close, businesses are still making tough decisions. Just yesterday, Spotify’s announced its third layoff of the year, cutting 1,500 jobs.
Here, we look at some of the major tech layoffs that occurred throughout 2023:
January 2023:
- Salesforce laid off about 10% of its workforce, approximately 8,000 employees.
- Informatica reduced its workforce by 7%.
- Alphabet-owned Verily cut 15% of its workforce.
- Alphabet’s Intrinsic AI reduced its staff by 20%.
- Google-backed ShareChat laid off 20% of its staff.
- Microsoft announced the layoff of 10,000 workers, nearly 5% of its workforce.
- Google (Alphabet) cut 12,000 jobs globally, about 6% of its global workforce.
- SAP announced 2,800 job cuts.
- IBM let go of 3,900 employees after asset disposals.
February 2023:
- PayPal reduced its workforce by 2,000 employees.
- Splunk laid off 4% of its staff.
- Dell Technologies cut 6,650 jobs due to declining PC sales.
- Zoom let go of 15% of its workforce.
- GitHub reduced its workforce by 10%.
- Microsoft confirmed cuts in HoloLens, Xbox, Surface teams; Yahoo laid off 20% of its staff.
- Twilio slashed 17% of its workforce.
- Twitter quietly let go of 10% of its remaining workers.
March 2023:
- Atlassian announced a 5% staff reduction.
- Meta cut an additional 10,000 jobs.
- Amazon laid off 9,000 workers.
- Accenture announced a 19,000-employee layoff.
- Kyndryl reduced its workforce but did not disclose the number.
April 2023:
- Meta initiated another round of layoffs, affecting technical teams.
- Red Hat laid off 4% of its global staff.
- Dropbox cut 16% of its workforce to refocus on AI.
May 2023:
- Cognizant let go of 3,500 employees.
- LinkedIn reduced its staff by 716.
- Stack Overflow laid off 10% of its workforce.
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June 2023:
- Zendesk announced an 8% staff reduction.
- Oracle laid off employees from its Cerner healthcare unit.
July 2023:
- Evernote moved operations to Europe, laying off most of its US and Chile staff.
- Cisco announced another round of layoffs.
August 2023:
- Rapid7 laid off 18% of its workforce.
- SecureWorks reduced its staff by 15%.
September 2023:
- Alphabet laid off hundreds from its recruitment team.
- Airtable executed its second round of layoffs within nine months, cutting around 237 employees.
October 2023:
- Meta let go of employees from its Facebook Agile Silicon Team.
- Qualcomm laid off 1,258 employees.
- Stack Overflow cut 28% of its workforce due to generative AI shifts.
- Nokia announced the cut of up to 14,000 jobs.
- Linkedin laid off 700 employees
November 2023:
- Splunk reduced about 560 jobs.
- Amazon laid off several hundred workers at its Alexa division.
December 2023:
- Twilio laid off about 295 employees, approximately 5% of its workforce.
- Spotify let go of around 1,500 employees, 17% of its workforce.
Why So Many Layoffs?
The trend in layoffs in 2023 reflects the tech industry’s response to many challenges, including economic downturns, market demands, and the evolution of technology, particularly in areas like generative AI. These layoffs are not just numbers; they represent a significant shift in the industry’s approach to staffing.
Many of these layoffs were attributed to “strategic refocusing”, particularly towards emerging technologies like AI and cloud computing. Others were a reaction to the post-pandemic market correction, where companies that had expanded quickly during the pandemic found themselves overstaffed as the world normalised.
The Way Forward
The tech layoffs of 2023, while challenging, also offer a glimpse into the industry’s adaptability. The focus on emerging technologies suggests that the tech industry is gearing up for its next phase of growth, though likely with a more cautious approach to staffing.
As we move forward, it will be crucial for both companies and employees in the tech sector to stay flexible, continuously upskill, and adapt to the ever-changing tech landscape.