Tech Company Layoffs In 2023: The Latest Cuts In Q1
Joseph F. Kovar
While tech layoffs in 2022 rose to levels not seen in years even as many tech companies were desperate to find employees, the number of tech layoffs already unveiled in January indicate that the situation will only grow in 2023.
2023: The Tech Layoffs Continue
2022 became known as the year in which dozens of tech companies began to lay off thousands of employees even as many businesses have found it hard to attract qualified IT personnel. And 2023 seems to be following the same pattern, with a variety of tech companies cutting their workforces.
So far in 2023, 200 tech companies have laid off a total of 59,448 workers, according to layoffs-tracking website Layoffs.fyi.
The official unemployment rate for the U.S. as of December 2022 is 3.5 percent, which matches the 10-year low reached in February of 2020, just before the COVID-19 pandemic began. More tellingly, the tech industry unemployment rate is just under 2.0 percent as of December, according to CompTIA. However, CompTIA also reported that tech job postings fell from their peak of almost 400,000 in January 2022 to about 250,000 in December.
While layoffs can be hard on those who receive the pink slips, not all is doom and gloom. In the tech industry, companies, at least the larger ones, typically offer severance packages which include several weeks to months of pay along with several months of paid insurance and help finding new jobs.
In addition, those workers may not be unemployed for very long, as many companies not considered “tech companies” in the traditional sense depend on growing their IT capabilities in order to meet their customers’ needs.
The Los Angeles Times Wednesday reported that that the burst of the dot-com bubble in the early 2000s led to a wave of experienced tech personnel, particularly software engineers, entering the job market and helping fuel a new wave of IT spending. That could happen again, with newly-freed tech personnel now able to move to smaller tech companies with more flexibility, and to other companies looking to expand their IT capabilities.
CRN has compiled a list of tech companies that have laid off workers since Jan. 1 of this year. Note that this list of tech layoffs is focused primarily on companies with a major focus on the B2B IT sector, and does not include layoffs at consumer-focused companies such as Spotify. Nor does it include tech layoffs by companies not normally considered as tech companies but which may have laid off some of its IT employees.
Click through the sldieshow to see the list of tech companies that have instituted layoffs so far in the first quarter of 2023. CRN will update this list on an ongoing basis.
Wade Millward, Mark Haranas, David Harris, Kyle Alspach, Gina Narcisi, and Rick Whiting contributed to this story.