Date:
August 09, 2023
The globally disturbing phase of mass layoffs has finally taken a back seat. While most companies are still on a hiring pause, here is a list of the ones hiring right now.
According to the top industry experts are ET, mass layoffs are on a sharp decline in the US. The impact of these layoffs even disturbed the tech workforce of India, leading to an abundance of jobless professionals since the beginning of 2023. However, that has come to a halt as well. The good news is that while most of the employees are happy about the layoff freeze, some new vacancies are opening up in brands with a good growth graph this year.
The Organizations Are Reorganizing
While most companies will give credit to recession as the main reason for the mass layoffs, the actual reality is the optimization of the workforce. Most of the brands that laid off mass employees actually repurposed their operations and created a more stable workforce that could sustain recessions while bearing the burden of any future recessions.
Layoffs in the big tech have steadily declined from June onwards. From 90,000 employees fired globally to a nominal number of 10,000 in July, brands have finally reached a stable state to sustain their workforce.
Tech will remain under pressure until there is more visibility on the rate cycle in the Western world!
Sachchidanand Shukla, Group Chief Economist at Larsen & Toubro
How?
Nitin Bhatt, who is the leader of the partner & technology sector at EY, said that in many organizations, a discussion around gradually removing low-revenue clientele. The reason why this is a logical step, even though it may lead to a revenue drop, is that the brands have realized that freeing up their workforce for high-priority clients is a must.
The second reason is that low-ticket clients add more pressure on their high-pay employees which in turn creates a low profitability stream in the long run and increases the attrition rate inevitably.
While most brands are still strategizing on how to utilize their existing capacity to the fullest without building up the pressure on them, some organizations have reopened vacancies but at a very slow pace.
What’s The New Hiring Trend?
The Tech landscape has dramatically changed with the advent of Artificial Intelligence. Even if the growth of AI is not related to mass layoffs, the new hiring trend will surely include people with capabilities around AI.
The good news is that demand for technology still exists, but decision-making is slow, and consequently, so is business growth. The environment for layoffs, except those happening because of funding issues in startups, is largely behind us.
Sangeeta Gupta, Senior VP of Nasscom
There is a huge lack of visibility in big tech firms as the way we look at technical skills is changing rapidly since the beginning of this year. So, the hiring graph will be slow, and each position’s value will be highly analyzed. The hirings that happen now might have a much higher endurance to unprecedented pitfalls like the recession, or a pandemic if the workforce division is pre-organized.
