IT or the tech industry has been at the forefront of all the massive changes that the new globalized world has seen through in the past 2-3 decades or so. Recently it has been in the limelight for all the scary reasons bought about by the advent of Artificial Intelligence, Impending Fear of Recession, and the Major Wars going on in different parts of the world starting from Russia-Ukraine to Israel-Gaza skirmish. 

All these factors have led to a rough patch with lots of job cuts. In January 2024 alone, more than 30,000 tech workers worldwide lost their jobs. This follows a trend of layoffs in major tech companies throughout 2023. Things might get even tougher for tech employees in the coming months, with some experts predicting a challenging job market.

Surprisingly, big tech companies were also not immune to the layoffs. Major corporations like Alphabet, Microsoft, Amazon, and Accenture all have cut jobs.  UPS in fact laid over 40% of its workforce, which comes around to 12,000 employees in a span of just a month’s time. Google’s parent company Alphabet, PayPal, and Amazon also let go of thousands of workers. Companies like X (formerly Twitter), YouTube, TikTok, WeWork, Pixar also added to the layoffs. Almost 5000 of combined IT workers in these companies were laid off in January 2024.

Tech layoffs exponentially surged in 2023 with over quarter a million jobs cut across thousands of companies. In addition to the above mentioned reasons of these unexpected layoffs, another major reason is over-hiring done during the pandemic. The new year also failed to bring any respite and almost 30000 job cuts happened in the first month alone. This gives a strong indication of another challenging year ahead.

India has also not been untouched from this downfall trend of IT sector. Even though Alphabet hinted at more layoffs later in 2024, the trouble has already started for some Indian companies. Major tech and ed tech companies like Paytm and Byju’s are facing financial problems, which means job security is at the risk for their employees. PayTm especially is at a major risk as their stock has plundered to almost 80% from their listing price. Wipro, a major Indian tech company, is looking to cut costs by laying off hundreds of mid-level workers. Popular Indian startups Swiggy and Flipkart aren’t helping either, with job cuts affecting 400 and 1,000 employees respectively.

Strategies to Overcome Layoffs Environment-

It can be a very scary and worrisome experience to get laid off. Although one has no control over a corporation working and decision, there are methods and strategies one can do to manage this efficiently. Insight International advises the following approaches and strategies will help one get through a layoff and come out stronger:

1. 1. Controlling One’s Emotions: It’s normal to experience the range of feelings that accompany a layoff, including anger, despair, and fear. Acknowledging them and talking to friends and family about it helps in overcoming these emotions.

1. 1. Recognizing Rights and Benefits: Learning about all the entitlement to unemployment insurance, severance pay, and any ongoing health insurance is important. Never be afraid to ask HR or other appropriate authorities questions and get clarity.

1. 1. Safeguarding Personal Finances: Assessing one’s current financial condition is very essential. Having substantial savings and a temporary income helps one to tide these tough times.

1. 1. Reach Out and Network: Make use of one’s professional connections. Share these circumstances with mentors, past bosses, and coworkers. Updating profile and establish connections with possible leads by using internet resources such as LinkedIn.

1. Updating Job Search Armory: Revamp one’s cover letter and CV by emphasizing on accomplishments and abilities that are pertinent to the career route one want to take.

At Insight International UK LTD, we understand the current challenges faced by the IT industry and its workforce. We offer a range of services, including career counseling to help you navigate this uncertain landscape.