News

Published: Feb 3, 2023
Updated: Feb 3, 2023

Layoff Season Continues: Over 68,000 Employees Sacked by 219 Tech Firms in January

The tech industry continues to see a wave of layoffs, with 219 companies in the sector announcing plans to cut a total of 68,000 jobs in January alone. This marks a significant increase from the 45,000 layoffs announced by tech companies in the same month last year.

According to data from the labour ministry, the IT-BPM sector has been hit the hardest, with over 60% of the layoffs coming from this industry. The layoffs have been attributed to a decrease in demand for IT services, as well as automation and artificial intelligence replacing human jobs.

Economic Downturn Impact on Tech Sector

The technology sector, which was once a beacon of hope for job seekers, has been hit hard by the ongoing economic downturn. According to data from the labour ministry, 219 companies in the technology sector have laid off over 68,000 employees in January. This is a significant increase from the same period last year, when only 156 companies laid off over 34,000 employees.

IT-BPM Sector Hardest Hit

The IT-BPM sector, which includes companies that provide IT services, business process management, and engineering services, has been hit the hardest. Of the 68,000 layoffs, 60% came from this industry. This is not surprising, as the IT-BPM sector is heavily dependent on demand for its services, which has decreased as companies cut costs and delay projects.

Reasons for Layoffs

The layoffs have been attributed to a decrease in demand for IT services, as well as automation and artificial intelligence replacing human jobs. As companies look for ways to cut costs, they are turning to automation and AI to perform tasks that were once done by humans. This has led to a decrease in demand for IT services and has resulted in job losses.

Once booming IT sector , now faces the most layoffs

The technology sector, which was once a reliable source of employment, has been hit hard by the ongoing economic downturn. With 219 companies laying off over 68,000 employees in January, it is clear that the job market in this industry is not as stable as it once was. The IT-BPM sector has been hit the hardest, with 60% of the layoffs coming from this industry. The layoffs have been attributed to a decrease in demand for IT services and automation and artificial intelligence replacing human jobs