After the outbreak of the Pandemic, the whole economy is in Recession which is causing the IT and Startups Companies to lay off the Employees. Tech companies faced massive Layoffs in 2022 and in 2023, the situation is looking much worse now. Read the Blog to know in detail.
LAYOFFS 2023: Highlights
- Tech companies including GOOGLE, AMAZON, and MICROSOFT are standing on Top in Laying off the Workers.
- Workers in Product Management, Finance, Marketing, IT, Quality Assurance etc. are most at Risk.
- Cost Cutting, Relocation, Workforce Reduction, Economic Recession are the major reasons of Layoff.
- Financial and Psychological health of Employees is on Stake which is linked to anxiety, depression and even loss of life.
What Layoff means?
A layoff is the temporary or permanent termination of employment by an employer for reasons unrelated to the employee’s performance. In the simplest terms, A Layoff is considered as a separation of workers due to the lack of availability of work or lack of funds with the Companies.
Employees may be laid off when companies aim to cut costs, due to a decline in demand for their products or services, seasonal closure, or during an economic downturn. When laid off, employees lose all wages and company benefits but qualify for unemployment insurance and compensation.
Mass Layoffs: Mass layoffs can damage the economies of the surrounding communities, especially those dependent on a single employer or industry.
LAYOFFS 2023: Why do Employees Laid Off?
Some of the major reasons due to which companies are reducing its workforce includes following:-
- Reduction of Cost- One of the main reasons why workers get laid off is because the company decides to cut back on costs in some way. The need can arise from the fact that the company is not making enough profits to cover its expenses or because it needs substantial extra money to pay its debt.
- Staff Redundancies- Layoffs also occur when an organisation needs to reduce or eliminate the Job positions due to Outsourcing, Over Staffing and Modifications in the Job Roles. Expanding some sectors, like IT, and shrinking others, like marketing, means that some employees will lose their jobs. In such a way, the company is able to accommodate the evolving needs of the growing sectors of the company.
- Relocation- Moving the company’s operations from one area to another can also bring about the need to let go off some workers. Shutting down the initial location will not only affect the workers who get laid off but the surrounding community’s economy as well.
- Increase in Technological Advancements- With the advancement of Artificial Intelligence and Machine Learning like technologies, the role of Workers is getting reduced to a great extent and therefore gets Laid off.
- Mergers and Acquisitions- Because two or more organisations get merged or one being acquired by another leads to New Leadership, Business Strategies, Change in Companies Policies which also leads to change and modifications in the existing Workforce.
What are the various Sectors being affected by Layoffs?
From the Giant Tech Companies including Google, Meta, Twitter, Amazon, Microsoft to Startups like Swiggy, Upscalio, Ola, Dunzo etc. announced mass layoff in Year 2023.
Here is comprehensive Statistics you need to know:
|Tech Company/ Startup||Workforce Affected|
|DELL||6650 People, or 5% of Worldwide Workforce|
|AMAZON||More than 1800 Employees|
|SHARECHAT||Over 400 Employees|
|MICROSOFT||10000 Employees laid off|
|GO MECHANIC||70% of its Workforce|
|CLEARCO||30% of its Staff|
|COINBASE||Announced cut off 950 Jobs|
|ALPHABET||12000 Employees, or around 6% of its Global Workforce|
How is this Global Layoff going to Impact the Youth?
- Layoffs can be damaging psychologically as well as financially to the affected workers as well as their families, communities, colleagues, and other businesses.
- When a company lays off its employees it sends out a message to customers that it is undergoing some sort of crisis.
- Dr Saumya Mudgal, Senior Consultant, Psychiatry, Max Hospital in Gurugram, told IANS that there has been a drastic increase in the number of patients coming from MNCs.
“These patients are usually presented with the issues of panic anxiety and panic disorder with agoraphobia and there is quite an increase in such patients. Some of them are already taking medications and the requirement of medication has gone up and the severity of symptoms has gone up,” Dr Mudgal told IANS.
- The Employment graph of the Economy will fall drastically because of Massive Layoffs and the overall GDP Rate will be adversely impacted.
LAYOFFS 2023: Opportunities for the Laid Off Youth
During the Global Layoff one can save himself by knowing the ultimate purpose of Human Life and understand the true way of Worship according to our holy scriptures to attain Salvation.
Only the Satbhakti of God Kabir Ji can eliminate all the problems whether Financial, Economical, Physical or Psychological.
Kabir Ji in His vaani says:
Maanus Janam Durlabh Hai, Mile Na Baarambaar |
Jaise Kuan Jal Bina, Banvaya Kis Kaam ||
Do Read Spiritual Book ‘WAY OF LIVING’ to know the real path of living happily.
Global Layoff 2023: FAQ
Answer: Permanent employees must receive at least fifteen calendar days notice unless employer and employee agree to waive the fifteen days notice period. Probationary employees must receive at least one calendar day’s notice.
Answer: Yes, up to 5 years of Military Service is added to the unbroken state service of eligible Veterans.
Answer: There is a possibility that the first half of 2023 will likely see fewer layoffs than the second, although senior employees and those in information technology (IT) will be most affected.
Answer: A slowdown in consumer demand post the Covid-19 years and uncertain macroeconomic conditions triggered mass layoffs across the World.
Answer: By volunteering to be a part of bigger company projects, especially the difficult, high-profile projects in which no one else wants to be involved with.