Is Layoff still a trend in 2023?

Are there still layoffs in 2023? Headlines all over the Internet have raised this specific issue. The layoff comes in so many countries as recession fears swirl. At least four corporate giants have a fresh round of layoffs in the works to start the new year.

The layoff announcements this early year of 2023 come as US Companies grapple with inflation, lose profits, and higher interest rates. Especially after the company was over-hired and this thing led them to an economic downturn. The Salesforce Inc division, Tableau, is the units in the company’s that have a large amount of job cuts this week, adding to a major reorganization that signal the US$15.7bil acquisition hasn’t lived up to expectations

In 2022, employees from major tech companies are facing a meltdown from the sudden and unannounced layoffs that happened all at once. And they’re not stopping any time soon as “big techs continue to downsize.”. So, It’s no longer surprising that in 2023 that the layoffs are still ongoing. The CEO of Salesforce, Marc Benioff, said that he’s been thinking a lot about how his company came to this moment as he was aware that Salesforce hired too many people through the pandemic. Headcount totaled 79,824 as of Oct 31 at Salesforce, up from 69,530 the same time prior year.

According to TrueUp’s tech layoff data, there were 1138 rounds of layoffs at tech companies globally affecting 182,605 people In 2022 and more than 16,000 workers have been laid off in mass job cuts in the US so far in 2023. However, overall layoffs are still relatively low compared to the pandemic era. Also, the Salesforce layoffs trend was expected to continue in 2023. 

Not only the Tech industry but a similar trend also surfacing the finance industry, which also hired aggressively during the post-pandemic. As we know, the Tech industry is an important contributor to almost 14% of the worldwide economy in 2021 and this number is predicted to increase in near time. It accounts for most establishments, jobs opportunities, innovations, and income for people worldwide. When the global economy shows early gloomy signs during the second half of the year, many tech companies have taken the matter and react faster to the incoming recession. And for some, they have started to cut expenses, re-arranging budgets and predict the next move. 

Layoffs are likely to continue as companies that have yet to pare back staff feel compelled to do so. In relation to the battle recession, many companies rely on their needs to have a digital presence or risk being outdone by competitors. And in times like these, adapting to global changes and identifying challenges at an early stage gives companies a competitive advantage to find the right solution. 

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