While no industry has been immune to the crisis, some have been hit harder than others, with massive job cuts occurring in the technology sector, once a beacon of growth. Layoffs have consequences that go beyond financial; they are also deeply personal.
Since 2023-2024, India has witnessed a wave of fire in several industries, with the technology sector taking the most basic actions. Big tech giants like Google, Amazon and Microsoft have announced cuts in work that also impacted the first universities.
According to layoffs.fyi, over 212,000 tech workers were laid off across the world in the first half of 2023, of which over 27,000 were laid off in India. The trend is set to continue in 2024, with reports of major Indian IT services companies laying off between 2,000 and 3,000 professionals. Job cuts in other sectors, including retail and manufacturing, have exacerbated the problem.
The recent layoffs can be attributed to a number of key factors, but the economic downturn is the main culprit, explained Dr Archana Srivastava, professor at the Birla Institute of Management and Technology. During periods of recession or reduced consumer spending, organisations are often forced to cut operational costs by reducing staff. “In addition, increasing implementation of technical outcomes, including automation and artificial intelligence, often exceeds a specific role that helps reduce employment. Furthermore, companies can be efficient with the help of development needs in development. “Inconsistencies in labor skills also play a key role as they try to optimize and adjust talent,” she declared.
But P. K. Agarwal, Dean of the University of California, Santa Cruz, a Silicon Valley trade school, said the cuts were not a sign of an economic slowdown but a response to changing skills needed at nearly every level of industry. “In times of change, companies value a willingness to learn. “Despite the uncertainty, those who are agile enough to be early adopters are likely to find great positions in the new economy,” he said.
While no industry was completely unaffected, some were hit harder than others. The technology industry, once a beacon of growth, has seen massive job cuts at major companies such as Meta, Google, and Amazon due to overexpansion during the pandemic and the subsequent market correction.
According to Professor Ram Kumar Kakani, Director of IIM Raipur, sectors like technology, retail and finance have been the worst hit. “The technology industry, for example, often grows aggressively during good times and restructures during bad times. The retail industry faces pressures from changing consumer habits and economic conditions, and similarly, the financial sector is subject to cyclical trends, which creates volatility. These industries are more sensitive to external factors like demand fluctuations, cost pressures, or technological disruptions,” he said.
Being fired doesn’t just have financial repercussions, it has serious personal repercussions too: Atin Verma, an IT marketer in Mumbai, had six hours to tidy up his office and just two days to accept his resignation. His most recent job was as a marketing manager at a cybersecurity company, and during an interview with the manager, he was informed that he was being fired.
“I felt like the ground had shifted from under my feet. I was shocked and asked questions about my job, but nothing helped and I was given time till Monday to accept my resignation,” said Verma, who is currently working on setting up his company and is also looking for job opportunities.
Similarly, Mumbai-based graphic designer Kamlesh Kamtekar was forced to change his career path and work as an auto driver after he was laid off. With 14 years of experience and a salary of Rs 75,000, he was now forced to take this unconventional path.
Financial Planning, Upskilling, Networking: Way forward
For those affected by layoffs, there are several steps to regain stability and even thrive. Financial planning is crucial, including prioritizing essential expenses and exploring severance benefits or unemployment support. Improvement and relief through online education platforms can help employees move into new roles and industries.
Networking is another important strategy. It’s another important strategy because the use of platforms like former colleagues, visiting industry events, and LinkedIn can reveal new opportunities. Additionally, coping with the emotional challenges of a layoff is essential; seeking professional mental health support or joining peer groups can help manage stress and build resilience.
Leave feedback about this