Over 90,000 IT Jobs Lost in 2024: Silent Layoffs Loom for Many More

Over 90,000 IT Jobs Lost in 2024: Silent Layoffs Loom for Many More

Disclaimer: This article aims to provide information on the current trends in the IT industry and the challenges faced by employees. The details presented are based on available data and reports, and readers should consider the dynamic nature of the job market.

In the first half of 2024, the tech industry has seen a staggering 98,834 employees laid off, with silent layoffs emerging as a growing concern, particularly among Indian IT workers. This alarming trend follows a significant wave of job cuts that began in 2022, affecting major companies such as Amazon, Alphabet, Microsoft, and Meta. The pace of layoffs only intensified in 2023, with a 59 percent increase compared to the previous year, resulting in 262,915 employees losing their jobs across various firms, according to Layoff.

The primary factors driving these layoffs include economic downturns, overhiring during the pandemic, and strategic restructuring aimed at maintaining financial stability. Despite months of substantial layoffs, the tech industry shows no signs of slowing down job cuts in 2024. According to data from Layoffs.fyi, 337 tech companies have already let go of nearly 100,000 employees in the first half of this year alone.

Silent Layoffs: A New Threat

While the fear of layoffs continues to stress IT employees, a more insidious trend known as silent layoffs is taking hold. This practice involves subtly pressuring employees to leave without making it public, effectively reducing the workforce quietly. According to a report by Moneycontrol, the Indian IT and IT-enabled services (ITeS) sector is increasingly resorting to this practice. 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.

What Are Silent Layoffs?

Silent layoffs typically involve giving employees a 30-day period to find a new position within the company. If they fail to secure a new role, termination usually follows. This method allows companies to reduce their workforce without attracting public scrutiny or backlash. The Nascent Information Technology Employees Senate (NITES) reported that between 2,000 and 3,000 employees were silently laid off in the first five months of 2024 from leading Indian IT service companies.

Silent Layoffs vs. Quiet Firing

It's essential to distinguish silent layoffs from quiet firing, though both involve pressuring employees to leave. Silent layoffs provide a notice period, allowing employees time to transition. In contrast, quiet firing involves making an employee's role increasingly undesirable, either by overloading them with tasks, assigning insignificant duties, or giving poor performance reviews, ultimately compelling them to resign.

Impact on Employees

Silent layoffs significantly impact employees, many of whom are placed on performance improvement plans (PIPs). These plans require employees to quickly prove their ability to avoid termination, often leading to stress and job insecurity. Experienced and higher-paid employees are particularly vulnerable, as companies target them to reduce costs.

As the tech industry continues to navigate 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 cannot be understated. 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 during such challenging times.