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Job Crisis: About 1 lac employees removed from job in 2024


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The tech industry has been experiencing a significant wave of layoffs in 2024, with a growing trend of silent layoffs affecting IT employees. This new practice has added to the already stressful situation faced by tech workers. Let’s explore this topic in more detail.

Increasing Job Cuts in the Tech Industry

The tech industry has been facing a series of layoffs since 2022. Major companies such as Amazon, Alphabet, Microsoft, and Meta have been cutting thousands of jobs, leading to a sharp increase in layoffs. In 2023, the trend continued to intensify, with a 59% rise in job cuts compared to the previous year. According to Layoff.ly, a total of 262,915 employees were laid off across various firms in 2023. This wave of layoffs can be attributed to economic downturns, overhiring during the pandemic, and strategic restructuring efforts aimed at maintaining financial health.

Silent Layoffs: A Growing Concern

In the first half of 2024 alone, a staggering 98,834 tech employees have been laid off by 337 tech companies, according to data from Layoffs.fyi. Companies are focused on reducing operational costs, which has led to further job cuts. While the fear of being laid off is already causing stress among IT employees, a new trend called silent layoffs is emerging.

Silent Layoffs in the Indian IT Sector

Silent layoffs involve subtly pressuring employees to leave without making it public. The Indian IT and IT-enabled services (ITeS) sector has seen a rising number of silent layoffs, as reported by Moneycontrol. The All India IT & ITeS Employees’ Union (AIITEU) revealed that approximately 20,000 technology professionals were affected by unannounced layoffs in 2023, and the actual numbers may be even higher.

How Silent Layoffs Work

Silent layoffs typically involve giving employees a 30-day period to find a new position within the company. If they fail to secure a new role, they are usually terminated. This method allows companies to quietly reduce their workforce, avoiding public scrutiny and potential backlash. The Nascent Information Technology Employees Senate (NITES) reported that leading Indian IT service companies silently laid off around 2,000 to 3,000 employees in the first five months of 2024.

Silent Layoffs vs. Quiet Firing

It’s important to distinguish between silent layoffs and quiet firing. While both involve pressuring employees to leave, they differ in execution. Silent layoffs provide employees with a notice period, allowing them time to transition. In contrast, quiet firing involves making employees’ roles increasingly undesirable, leading them to resign.

Impact on Employees

Silent layoffs have a significant impact on employees. Many employees undergoing silent layoffs are placed on performance improvement plans (PIPs), where they must quickly prove their abilities to avoid termination. This situation often leads to stress and job insecurity, particularly for experienced and higher-paid employees who are targeted by companies aiming to reduce costs.

Navigating Turbulent Times in the Tech Industry

As the tech industry continues to face challenges, the rise of silent layoffs poses an additional obstacle for employees. While companies may see these strategies as necessary for survival, the impact on employees’ careers cannot be underestimated. It remains to be seen how the tech industry will address these issues and what measures will be taken to support its workforce during these challenging times.

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