A wave of layoffs seems to be gathering steam in the technology sector as companies tighten their belts ahead of a widely expected economic downturn. Among the brand names, Amazon is reportedly letting some 10,000 employees go, while Meta plans to dismiss about 11,000.
To one degree or another, both Amazon and Meta have their fingers in the HR technology pie. Amazon’s Alexa is able to interface with a variety of ERP and HRIS systems, while Meta’s Workplace aims to provide a “Facebook-like experience” that combines chat, video, groups and a company’s intranet with the work tools already in use.Layoffs are gathering steam in the technology sector as companies tighten their belts ahead of an expected economic downturn. #HR #HRTech Click To Tweet
Tech layoffs have spiked in November, said layoffs.fyi, with 25,000 workers let go in the month’s first half alone. That compares to 12,000 during all of October.
Whether or not the layoffs continue depends on the economy, economists believe. Bloomberg reported that cost-cutting and layoffs are taking place not only in tech but across the board. In addition, 81% of the CHROs surveyed by PwC said they were implementing at least one workforce reducing tactic, such as layoffs, voluntary retirement, performance-based cuts and hiring freezes.
Layoff Danger in HR
Given today’s economic instability, HR itself is sure to be hit with cuts, with at least 25 companies in the sector imposing reductions in force so far this year. (HR team members are specifically mentioned as being included in Amazon’s reductions.)
Over the past several months Salesforce, Gem, Lattice and Udacity have all cut headcount, according to layoffs.fyi. Workramp dismissed 20% of its workers, while Wavely, an early stage job board, went under completely.
Although the hiring of top performers is likely to continue, recruiters and talent acquisition specialists may be at risk, as well, as employers reconfigure their workforces. In 2021, talent acquisition was identified as a priority by 40% of HR professionals surveyed by Lattice. That number fell to 17% in 2022.
Mark Feffer contributed to this report.