The current economic climate is highly unsettled, and recession fears have plagued our economy for months. According to the National Bureau of Economic Research, we haven’t hit an official recession yet. However, mass layoffs in the tech industry have shown us that the economic picture is anything but rosy.
It’s not a secret that the tech industry has been struggling for months. In 2022, hundreds of companies across the tech industry instituted layoffs. Meta’s layoffs were among the eye-popping headlines, with over 11,000 employees out of a job.
It looks like the tech layoffs will continue with lasting impacts in 2023. Earlier this month, Amazon and Microsoft announced layoffs totaling around 28,000 employees combined.
On January 18, Microsoft’s CEO, Satya Nadella, announced significant layoffs at the company. In a statement, Nadella said, “today, we are making changes that will result in the reduction of our overall workforce by 10,000 jobs through the end of FY23 Q3. This represents less than 5 percent of our total employee base, with some notifications happening today.”
Nadella continues, “It’s important to note that while we are eliminating roles in some areas, we will continue to hire in key strategic areas. We know this is a challenging time for each person impacted. The senior leadership team and I are committed that as we go through this process, we will do so in the most thoughtful and transparent way possible.”