In the first half of 2024, a staggering 98,834 tech employees have been laid off. Silent layoffs, increasingly targeting higher-paid Indian IT workers, are becoming more prevalent.
These layoffs involve subtly pressuring employees to leave without public announcements, leading to significant stress and job insecurity among those affected.
This wave of layoffs is attributed to economic downturns, overhiring during the pandemic, and strategic restructuring aimed at maintaining financial stability. Despite months of substantial job cuts, the sector shows no signs of slowing down.
According to data from Layoffs.fyi, 98,834 employees have already been let go by 337 tech companies in the first half of 2024.
Companies are focusing on reducing operational costs, leading to further job cuts. This growing trend of silent layoffs is adding to the anxiety of IT employees.
The Indian IT and IT-enabled services (ITeS) sector is increasingly resorting to silent layoffs. These involve subtly pressuring employees to leave without making it public.
The All India IT & ITeS Employees’ Union (AIITEU) revealed that approximately 20,000 technology professionals were affected by such unannounced layoffs in 2023, with the actual numbers suspected to be even higher.
Silent layoffs often entail giving employees a 30-day period to find a new position within the company, failing which they face termination. This method allows companies to reduce their workforce quietly, avoiding public scrutiny and backlash.
Silent layoffs are often confused with quiet firing. While both involve pressuring employees to leave, they differ in execution.
In silent layoffs, companies provide employees with a notice period, allowing them time to transition.
Quiet firing, however, involves making employees’ roles increasingly undesirable, either by overloading them with tasks, assigning insignificant duties, or giving poor performance reviews, compelling them to resign.
As the tech industry navigates these turbulent times, the rise of silent layoffs poses a significant challenge for employees.
While companies may view these strategies as necessary for survival, the impact on employees and their careers is profound.
As the year progresses, it remains to be seen how the tech industry will address these issues and what measures will be taken to support its workforce through such challenging times.
