New Delhi, December 14: In the waning days of 2023, the tech industry has been hit by a wave of layoffs, casting a shadow over what was once considered the most secure and booming sector. Companies such as Etsy, Spotify, Zulily, and Simplylearn have joined the ranks of the tech industry, reducing their workforce in response to economic headwinds and strategic realignments.

The tech industry is facing a significant surge in layoffs, with several companies announcing job cuts that are impacting thousands of employees. As with traditional sectors, the tech industry is facing challenges similar to those faced by other sectors, a reminder that no industry is immune to economic cycles. The common thread among these companies is the challenge of navigating through an economic landscape that is constantly shifting and evolving. Tech Jobs: Hiring for Techies Set to Rise in 2024 After Layoff-Hit Year, Says Report.

Layoffs in the Tech Industry:

According to a report by Indian Express,  Etsy, the online marketplace known for its unique and handcrafted goods, has laid off 225 employees, which amounts to 11% of its workforce. This move comes as a strategic decision to restructure the business and streamline costs in light of the challenging macroeconomic environment. Josh Silverman, CEO of Etsy, acknowledged that the company has "more than doubled its size since 2019" but emphasized the need for sweeping changes to adapt to current competitive realities.

Following suit, Zulily, a US-based online retailer, announced plans to lay off approximately 800 employees across multiple locations, including Washington, Nevada, and Ohio. The layoffs are expected to commence in early February, with the company also closing three offices and two warehouses as part of its downsizing efforts.

The Bengaluru-based ed-tech startup Simplylearn is another name on the list, reportedly sacking close to 200 employees due to poor performance. The sales team at Simplylearn has been particularly affected, with the marketing and operations departments feeling the impact of the job cuts initiated earlier in the month. Infosys Founder Narayana Murthy’s Two New Deepfake Videos Promise People To Earn Rs 2.5 Lakh in One Day.

These layoffs come on the heels of Spotify's announcement of letting go of nearly 1,500 staff members, representing 17% of its workforce. Daniel Ek, CEO of Spotify, cited overhiring during 2020 and 2021 as a key reason for the need to "rightsize" the company's costs.

(The above story first appeared on LatestLY on Dec 14, 2023 05:20 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).