More tech workers were laid off in the first quarter of 2023 than in the whole of 2022.
According to data from Layoffs.fyi,165,622 tech workers had been laid off in 2023, compared to 164,411 tech workers who were sacked
The rise in layoffs of tech workers has been linked to the global economic downturn that has affected investors and businesses.
A breakdown of the data suggests that dire days in the tech sector might not be over soon.
The data revealed an increase in the severity of layoffs with 1,053 tech firms laying off 164,411 workers in 2022, and only 551 tech firms (about half of 2022’s figure) laying off 165,622 workers in Q1, 2023.
Global tech firms like Google, Amazon, Meta, and Microsoft have not been isolated from market realities and have been sacking workers across various markets and departments in large numbers.
Layoffs on the continent have not been pronounced, and many startups laying off staff have been avoiding media attention.
However, firms on the continent have been trimming staff and plans because of the fall in startup investments.
A recent research note by Morgan Stanley analysts noted that many tech firms will need to learn to better manage cash flow and adjust to a slower 2023.
It said, “It is important for companies to evaluate how to better manage cash flow as they adjust to a slower ’23 world.”
Many startup founders expect the current global reality to persist for another 18 to 24 months, heralding record layoff numbers.
They expect more startups to realign their priorities and focus on revenue-driven approaches.
The Founder of Pivo, Nkiru Amadi-Emina, in an interview, said “We are likely to see more layoffs.
“We have seen a couple of them over the last couple of months. Companies are learning that we need to be more conservative.
“This dynamic will mean that a lot of businesses will have to prove themselves, prove their thesis and the solution to the problem that they are solving.
“A lot of companies will have to prove and show that this is a real problem and if solved will be able to generate a lot of return on investment.”
She projected there would be a conservative approach to how firms utilise equity.
Culled From Punch.