Mass layoffs are hitting the tech sector as a result of economic recession concerns despite a hiring spree that saw over 150000 people employed in 2022, as per the study by 365 DataScience. The pace accelerated in 2023 due to an uncertain economy and slowing revenue growth with 68,500 new job cuts in the first quarter alone. Approximately 90% of the layoffs according to the recent sample survey were in the US where most tech companies have their headquarters—in contrast, around 0.9% of Indian workers got the pink slip.
The job roles came under the scanner, according to Layoff. Fyi were:
Support and Maintenance: Jobs focused on technical support, customer service, or maintenance roles may be impacted during layoffs as companies look to streamline operations or automate certain tasks.
Middle Management: During restructuring or cost-cutting measures, middle management positions can be affected as companies try to flatten hierarchies and reduce overhead.
Non-Technical or Administrative Roles: In some cases, non-technical or administrative positions, such as HR, marketing, or finance, may experience layoffs as companies prioritize core technical functions during difficult times.
Redundant or Outsourced Roles: As companies adapt to changing market dynamics, certain roles may become redundant or outsourced, leading to layoffs. This can happen, for example, when a company decides to shift its focus or restructure its operations.
Industry-Specific Roles: Layoffs may also impact certain industry-specific roles or niche skill sets if there is a decline in demand or a shift in technology trends. It’s important to stay updated with industry developments to assess the potential impact on specific job roles.
According to recent research 23%of laid-off personnel were software engineers. Other tech roles which were part of layoffs were program managers, product managers, sales, cloud, and data center, data analysts, and data scientists among others.
On the other hand, Infrastructure investors will continue pouring money into Asian data center projects despite ongoing business retrenchments by several large technology companies and concerns about the industry’s growth prospects, according to an analysis of Infralogic data.
The argument for continued investment in the region is partly on the basis that supply there is lagging demand. Though APAC greenfield data center transaction activity has risen in recent years, it still sharply lags comparable transaction activity in EMEA and North America, according to a recent analysis.
Still, demand for data center capacity in the region does not seem to slow anytime soon, according to an October economic research report for 2022, the region’s data center sector scene is quite promising and will continue to persist for the foreseeable future.