Indian BeehiveNews

Are big tech companies running out of staff steam

Unicorns continue to lay-off their staff in 2023. According to a report by Inc42, Indian startups have laid off about 23,000 of their workforce since last year. Unicorns including Uacademy, Vedantu, Furlenco, Trell, Byjus, Ola, Meesho, etc. have all conducted layoffs recently.

Employees are shaken as the news of layoffs is only increasing and becoming headlines almost every day now. It seems like big tech companies are running out of staff schemes. Companies like Google, Amazon, Salesforce, IBM, etc. started conducting layoffs in 2022.

Chief economist at ADP research institute (automatic data processing) Nela Richardson, says, “We’re not in a recession yet and may not realize we’re in one until it’s over.”

She further added that technology-based firms are cutting their workforce, but they continue to invest in future technology. For example, Microsoft laid off 10,000 of its workforce this month itself, and days after it announced making an investment in ChatGPT. These companies have mainly cited the fact that the market has been changing.

Dukaan has laid off about 30 percent of its workforce, which amounts to about 56 employees.

The retail technology-based startup conducted its second round of layoffs this month, after a six-month gap since its first round. This decision comes after the company made a switch and will now focus on D2C brands from SMBs. This impacted the sales team along with account managers, and affected employees were offered a two-month pay package as compensation.

A Bengaluru-based startup founded by Suumit Shah Choudhary in the year 2020. Dukaan is an e-commerce platform that helps customers create their own websites with access to a digital wallet for smooth payments. Dukaan has achieved a total of over 1.5 million transactions.

On Monday, Amazon announced that the company will be letting go of about 9000 employees in the coming few weeks, specifically from the advertising department. Amazon has already laid off 18000 of its workforce in mass firings. There were other tech giants that laid off a huge workforce.

Chief Executive Officer at Amazon, Andy Jassy, said, “Some may ask why we didn’t announce these role reductions with the ones we announced a couple of months ago. The short version is that none of the teams completed their analyses by the end of the fall and rather than rush through these assessments without the appropriate diligence, we chose to share their decisions as we’ve made them so people had the information as soon as possible.”

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