January 24, 2023 7:27 AM
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We’re not out of the first month of 2023 and already, tech layoffs are coming thick and fast. Layoffs.fyi reports that so far, 122 tech companies have laid off 37,526 employees. That includes Amazon, which is shedding 8,000 of its headcount, and Coinbase, which is letting go 950 workers.
Last week Microsoft announced that it would also reduce its workforce by 10,000 people this year. Google announced last week its plans to lay off 12,000 of its workforce. On 4th January, Salesforce’s CEO Marc Benioff announced in a company memo that it too, would be laying off 10% of the company’s total staff.
“I’ve been thinking a lot about how we came to this moment,” Benioff wrote. “As our revenue accelerated through the pandemic, we hired too many people leading into this economic downturn we’re now facing.”
Tech had a great pandemic: Meta, for example, had a headcount of around 58,000 in 2019. The company aggressively added numbers and its staffing was 87,000 by the third quarter of 2022. But Mark Zuckerberg, too, has said that Meta hired too fast in the high-growth pandemic years, and it now needs to scale back to improve profitability.
Indicative of corrections
Benioff and Zuckerberg’s comments are indicative of the current environment, and the corrections many tech companies are having to make. However, the bigger picture is that the industry as a whole remains a space with many growth opportunities.
A recent survey found that 96% of workers are looking for a new position this year. Forty-six percent will expect a higher salary due to inflation and the cost of living, with only 11% thinking they will earn less at a new job.
While more money is the biggest motivator, there are other factors too. Just over a third report that there is no room to grow in their current job, and 25% say they are in a toxic workplace.
If money is the motivating factor, the good news is that salaries have risen over the past year....