Interviewtimes 
After years of rapid expansion, start-ups and big tech companies tend to freeze hiring and firing. So far, about 150 US-based companies have laid off more than 37,000 employees in 2022. Most of the layoffs were reported in his June, with 75 US-based tech companies laying off employees. The layoffs affect just about every tech company, from start-ups like Robinhood, Gemini and Hopin, to “big names” like Apple, Google, Microsoft and Amazon.
The market capitalization of the top 30 tech companies fell by $4.3 trillion in the six months from January 1, 2022 to June 1, 2022. These 30 companies make up the majority of the overall technology market. Total market losses for the world’s listed technology markets were at least $5-6 trillion. Of these, the top 30 companies accounted for $4.3. Trillion. In fact, Apple and Microsoft alone contribute about $1 trillion to the market depreciation. Market valuations of the top 30 technology companies recorded a $900 billion recovery from June to August 18th.
For the China-based tech company, losses are estimated at over $2 trillion due to the highly regulated environment since the sale began in late 2020 and early 2021. High-growth and mega-cap companies have driven the U.S. stock market over the past decade, but the Federal Reserve has hiked interest rates to combat decades of high inflation and the recent sharp rise in a strong dollar weighs heavily on the stock market.
In April, Nasdaq 100 technology stocks tumbled amid rising risks from rising Treasury yields and hawkish comments from the Federal Reserve. As a result, over $1 trillion in market value was wiped from tech-focused benchmarks in his fifth year trading session. In, January lost a staggering $3 trillion, while February and March were relatively strong with losses of $1.7 trillion and $1.5 trillion respectively. The companies included in the index have a combined market capitalization of $16.9 trillion, Apple, Microsoft, Amazon. This year, till May 2022, the tech-heavy S&P 500 has lost nearly a fifth of its value. The hardest hit were Amazon (-36%), Tesla (-38%), Meta (-45%), Zoom (-44%) and Shopify (-76%). Overall, 48% fewer venture capital firms went public during the pandemic.
BIG-TECH TO ANNOUNCE LAYOFFS:
MICROSOFT:
Microsoft was the first Big-Tech to announce layoffs. Reportedly, it was mostly affected by the 1% of 1,80,000 employees across all branches and product areas.
NETFLIX:
Streaming giant Netflix lets go About 450 employees during May-June this year. The loss of regular subscribers with counts, stock flags and a massive drop in sales, the company had to reduce costs to overcome increasing hurdles.
TESLA:
In June, Tesla closed its San Matteo office and laid off 229 Autopilot division employees as “moderately low-skilled, low-paid” employees. The incident was described by Musk as a
bad phase regarding the economy, he decided to lay off at least 10% of Tesla’s employees.
APPLE:
Just a few days ago, the iPhone maker laid off nearly 100 of his contract-based recruiters.
GOOGLE:
Two consecutive quarters as earnings fell short of expectations, Google warned employees of ‘imminent consequences’ unless conditions improve in the short term quarter. Added after employment freeze was already extended this month and employees under pressure from Google management not to deny possible layoffs.
TWITTER:
Twitter laid off about 100 employees to save on excessive costs during the “Elon Musk saga”. The company also laid off 30% of his talent acquisition team in the face of mounting challenges.
What is the situation of IT companies in India?
In India there are more than 12,000 tech startup employees who lost their jobs in 2022. In recent months, educational technology companies such as Byju’s and Unacademy have laid off employees. Byju laid off his 550 workers, while Unacademy reported the most layoffs of 1,150 employees. Vedantu wasn’t far behind with the 624.
Meanwhile, Ola laid off about 500 employees, MFine cut his 600, and Cars24 reported his 600. Staff cuts were all due to lack of funds following monetary tightening and equities correction by global central banks market. Besides layoffs, IT companies experience high turnover rates. This led to an increase in personnel expenses such as pay raises and bonus payments at the time of hiring. On average, IT companies in India spend 57% of their revenues on employee wages.
However, to compensate for this due to the high turnover rate, IT companies in India are hiring majority of freshers.
In the first quarter of the FY23, Wipro added approximately 15,446 employees followed by TCS (14,136) and HCL Technologies (10,966). Infosys hired the most with a net increase of 21,171.
WHY COMPANIES DECIDE TO DOWNSIZE:
Economic crisis:
High inflation, slowing economic activity and rising interest rates as a result of the ongoing Russian-Ukrainian war have had a major impact Macroeconomic activity around the world. With rising prices of important raw materials The economy is in crisis. Most people face the dilemma of choosing growth or curbing inflation.
Cost reduction:
As mentioned earlier, increasing potential inflation and recession due to poor first-year performance. The quarter prompted tech companies to take a closer look at their spending and make the decisions needed to cut costs and cut expenses. Most businesses are reeling under the burden of high input costs as a result of war-torn supply chains in Ukraine.
Admit layoffs:
Part of the cost savings was recognition of departments and positions initiated Realization of headcount reductions and continued low profitability – mainly involving human resources, sales and recruiting.
Improved productivity:
Tech companies have declined, as seen in the case of Google below expectations for QI results, Employee productivity is ahead of the ‘meltdown’ curve, offsetting last quarter’s disappointing results.
