2023 Year in review: how layoffs hit technology and startup workers
Layoffs.fyi, more than 1,150 tech companies fired over 260,000 people in 2023. A combination of factors such as central banks hiking interest rates to counter inflation, macroeconomic headwinds forcing tech clients to cut spending, continuous geopolitical uncertainties, and a prolonged funding winter forced startups and tech firms to recalibrate their strategies.
With 2023 drawing to a close, ETtech looks at startups and tech companies, global and domestic, which laid off employees as they cut costs.
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Accenture: IT services firm Accenture said it would lay off about 2.5% of its workforce, or 19,000 employees, becoming the latest major company to announce job cuts because of macroeconomic challenges.
IBM Corp: Thesoftware and consulting firm said it will lay off 3,900 employees. The company also forecast annual revenue growth in the mid-single digits on constant currency terms, weaker than the 12% it reported last year.
Cognizant: The US-based software exporter announced a two-year rejig to simplify the operating model and rationalising office spaces to the tune of $400 million. It expects the personnel-related actions of this programme to impact — lead to the termination of — around 3,500 employees or 1% of its total workforce.
Spotify: Music streaming service Spotify cut 6% of its workforce or roughly 600 roles. CEO Daniel Ek announced the layoffs as part of an organisational restructuring aimed at increasing efficiency, reducing
