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A Closer Look Into 2023 Tech Layoffs So Far

A Closer Look Into 2023 Tech Layoffs So Far
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A Closer Look Into 2023 Tech Layoffs So Far

A Closer Look Into 2023 Tech Layoffs So Far

 

2023 has seen a significant wave of layoffs in the U.S. tech industry, with over 157,517 workers losing their jobs in mass job cuts.

According to Crunchbase and Layoffs.fyi, the layoff data reveals interesting insights into the demographics and departments most affected. As the tech sector faces this challenging phase, it becomes crucial for companies to consider the impact of job cuts on diversity and inclusion efforts. In this article, we explore the latest numbers and delve into the implications of these workforce reductions on diversity within the industry.

 

A Record Year of Layoffs

The tech industry has been going through a tumultuous period, witnessing a significant increase in layoffs. According to a recent tally by Crunchbase, the number of workers laid off in 2023 surpassed 157,000. For the week ending on July 28, 2023, at least 1,776 tech sector employees were affected by job cuts, according to Crunchbase News.

 

The Most Affected Companies:

Among the tech giants, Amazon topped the list with 16,080 roles cut, followed by Alphabet with 12,000 roles, Microsoft with 11,158 roles, and Meta (formerly Facebook) with 10,000 roles. These figures indicate the magnitude of the layoffs experienced by some of the industry’s key players.

 

A Closer Look Into 2023 Tech Layoffs So FarGender Disparities in Layoffs:

An analysis conducted by Layoffs.fyi (shared with Axios) shed light on the gender breakdown of laid-off tech employees from October 2022 to June 2023. The study, based on data from 3,404 workers, revealed that women constituted 45% of the laid-off workforce. In contrast, approximately 55% of the laid-off workers were male.

It is important to note that these numbers contrast with the broader tech industry statistics, where the male workforce typically makes up a higher proportion. For instance, in 2022, Meta reported that 63% of its employees were male. However, Meta has chosen not to disclose demographic data about its layoffs.

 

Analyzing the Impact on Diversity:

The tech industry’s layoffs have shown a distinct pattern, affecting departments that have historically had a higher representation of female employees. Human resources, recruiting, and marketing departments have been hit hardest, with almost half of HR and recruiting professionals losing their jobs. In comparison, only 10% of engineers and 4% of salespeople were affected by the layoffs.

These findings are indicative of the tech sector’s tendency to prioritize the retention of employees in core technical roles, often considering other departments as less essential during cost-cutting measures.

In addition to the layoffs in female-dominated departments, tech companies have also scaled back their diversity, equity, and inclusion (DEI) teams. This move is concerning, as these teams play a vital role in fostering an inclusive and diverse work environment within the tech sector.

 

Addressing the Issue

Industry experts suggest that tech companies that genuinely value diversity should take careful consideration while implementing layoffs. By paying attention to which areas of the business they cut jobs, companies can mitigate the negative effects on workforce diversity.

The surge in tech sector layoffs during 2023 has had far-reaching consequences, impacting more than 157,000 workers across various companies. The disproportionate effect on female-dominated departments raises concerns about workforce diversity and inclusion in the industry. As the sector navigates these challenges, it is essential for tech companies to prioritize diversity and inclusion, even in times of economic hardship. By doing so, the industry can emerge stronger and more resilient while maintaining a diverse and talented workforce.

Fabric Staffing, is your premier tech recruiting firm specializing in partnering with early-stage startups, seed to series companies, and building exceptional engineering & product teams.

We specialize in building initial startups CTO/Tech Co-founders (Head of, VP, Director of Technology/Product), first engineer/product hires (software, mobile, full-stack, data, front-end, back-end, AI/ML, DevOps, Jr. – Staff lvl developers, Data Science, big data, blockchain)

Our mission is to help our partners build high-quality teams of tech talent that drive innovation and success.

 

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