Over 98,000 Indian IT workers already laid off by 337 companies in 2024 – Trak.in

A continuing trend from previous years

Since 2022, the technology industry has been experiencing a tumultuous period, marked by significant layoffs. Major companies like Amazon, Alphabet, Microsoft and Meta have cut thousands of jobs, leading to a sharp increase in layoffs.

In 2023, the trend intensified, with a 59% increase in job cuts compared to the previous year, totaling 262,915 employees laid off across various companies. This wave of layoffs has been attributed to the economic downturn, excessive hiring during the pandemic and strategic restructuring aimed at maintaining financial health. Despite massive layoffs for months, the sector shows no signs of slowing down job cuts in 2024.

Alarming figures in 2024

According to data from Layoffs.fyi, 98,834 employees have already been laid off by 337 tech companies in the first half of 2024 alone. Companies are focusing on reducing operational costs, leading to further job cuts. Fear of being fired is stressing IT workers, and a new, more insidious trend is growing: silent layoffs.

The rise of silent layoffs

India’s IT and IT services (ITeS) sector is increasingly resorting to silent layoffs, which involve subtly pressuring employees to leave without making it public. The All India IT & ITeS Employees’ Union (AIITEU) revealed that around 20,000 tech professionals were affected by such unannounced layoffs in 2023, with the actual numbers suspected to be even higher. Silent layoffs often involve giving employees 30 days to find a new position within the company. Failure to secure a new role usually results in dismissal. This method is widespread and allows companies to downsize quietly, avoiding public scrutiny and potential backlash.

Silent layoffs or silent layoffs

Silent layoffs are often confused with quiet layoffs. Although both involve pressuring employees to leave, their execution differs. In silent layoffs, companies typically give their employees a period of notice, giving them time to make the transition. Quiet dismissal, on the other hand, involves making employees’ roles increasingly undesirable, either by overloading them with tasks, assigning them trivial tasks, or giving poor performance reviews. This forces the employee to resign.

Impact on employees

Quiet layoffs have a significant impact on employees, especially experienced and highly paid ones, as companies target them to cut costs. Many employees who go through this process are placed on performance improvement plans (PIPs), in which they must quickly demonstrate their ability to avoid termination. This often leads to stress and job insecurity, especially for those who are unable to secure new positions within the company.

The road ahead

As the tech industry continues to navigate this turbulent period, the rise of silent layoffs poses a significant challenge for employees. Although companies view these strategies as necessary for survival, the impact on their employees and their careers cannot be underestimated. As the year progresses, it remains to be seen how the tech industry will address these issues and what steps will be taken to support its workforce during this difficult time.