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Looks like the overhiring in the tech sector (when the entire world went remote), is coming to a close. No one knew if we would have to hunker down indefinitely, as it is no longer the case, the extra staff, seemingly, has served its purpose.
Unfortunately, for tens of thousands of tech workers, that’s not good news in the slightest. Throughout 2023, we’ve seen significant layoffs in the IT sector, with virtually no major company staff safe from harm. Despite the dark clouds, there's a silver lining: no startup that reported cuts is shutting down completely. Here are some numbers on the 5 recent companies cutting jobs:
Vroom
Houston's own Vroom is shifting gears. The used vehicle market is now closed while United Auto Credit Corp. and CarStory are kept in the race. An 800-strong workforce is now facing the axe, a staggering 90% of its crew.
Microsoft
Microsoft announced 1,900 layoffs, mainly slicing through its Activision Blizzard division in Santa Monica, California. It's a strategic shave, affecting less than 1% of its massive workforce but signaling a significant pivot in its gaming branch.
Salesforce
Salesforce said goodbye to 700 employees, also about 1% of its workforce. Despite this, the cloud giant is keeping its doors open with around 1,000 vacancies, suggesting this move is more about realignment than retreat.
Google's layoffs remain a bit of a mystery, with precise numbers unclear. The tech behemoth is trimming its Moonshot X Lab team as it seeks investors for its new projects. Sadly, it’s a common sight for pioneering projects; if it’s not viable, it becomes a money drain.
Flexport
Flexport, the logistics unicorn, is reducing its workforce by 20%, translating to 520 jobs cut based on its October 2023 headcount of 2,600. After multiple rounds of layoffs last year, this move underscores the ongoing turbulence in the logistics sector. COVID + that one freight liner that got stuck in the Suez Canal—will they ever catch up with the backlog? Remains to be seen.
In total, a staggering 191,000+ tech jobs were cut in 2023. The tech giants that made the biggest cuts in 2023 include Amazon, Alphabet, Microsoft, and Meta, with Amazon leading the pack with 16,080 roles cut.
The tech industry has always been cutthroat, but recently, even more so. While the numbers can be disheartening, they also open up opportunities for new beginnings. One fact is certain: it only keeps on growing.
