Tech Layoffs Surge: 8,000 Jobs Cut by Indian Firms in 2024

By mid-August 2024, nearly 8,000 employees across 32 companies in India have faced layoffs, with a significant portion of these job cuts occurring in IT startups. Paytm, one of the leading digital payment companies, alone laid off 3,500 employees in June.

Globally, more than 130,000 layoffs have occurred, with major cuts from prominent tech giants. For example, Intel announced the reduction of 15,000 employees, which constitutes 15% of its workforce, as part of a plan to achieve $10 billion in cost savings by 2025, as reported on August 1.

The layoffs have primarily affected the technology sector, where startups and large firms alike are striving to streamline operations and reduce expenditures in response to market pressures and declining investor confidence. The global economic slowdown, combined with the rapid integration of artificial intelligence (AI) and automation technologies, has further exacerbated the situation, leading companies to reassess their workforce needs and organizational structures.

In India, the impact has been particularly pronounced in the IT and tech startup ecosystem, which has been grappling with funding challenges, increased competition, and the need to achieve profitability. As a result, many companies have resorted to workforce reductions as a means to preserve cash flow and ensure long-term viability.

This wave of layoffs has raised concerns among employees and job seekers, especially recent graduates who face a shrinking job market. The situation underscores the need for workers to adapt to the evolving demands of the job market, which increasingly favors skills in AI, machine learning, and other advanced technologies.

The ongoing layoffs, especially within the tech sector, have been accompanied by a broader decline in hiring activity. According to the Naukri Jobspeak June 2024 report, white-collar hiring has dropped by 8% compared to last year. This trend reflects the growing caution among companies amid economic uncertainties and the rapid adoption of AI and automation technologies, which are reshaping workforce needs.

The combination of layoffs and reduced hiring underscores the challenges facing the global tech industry as it navigates economic pressures and the need for innovation. Employees and job seekers, particularly in white-collar roles, are facing a more competitive and uncertain job market, highlighting the importance of upskilling and adaptability in these changing times.