The tech industry began to tremble as it entered a wave of layoffs. In 2022, the sector saw a significant increase in job cuts, with major companies like Amazon, Alphabet, Microsoft, and Meta slashing thousands of positions.
This trend only intensified in 2023, with a 59% rise in layoffs compared to the previous year. According to Layoffs.fyi, 262,915 employees were let go across various firms. These layoffs were largely driven by economic downturns, overhiring during the pandemic, and strategic restructuring aimed at maintaining financial stability.
Despite months of massive layoffs, the tech industry shows no signs of slowing down job cuts in 2024.
Data from Layoffs.fyi reveals that 98,834 employees were laid off by 337 tech companies in just the first half of 2024. Companies are continuing to focus on reducing operational costs, leading to further job cuts. As IT employees already grapple with the stress of potential layoffs, a new and more insidious trend is emerging—silent layoffs.
Rise of Silent Layoffs
The Indian IT and IT-enabled services (ITeS) sector is increasingly resorting to silent layoffs. This practice involves subtly pressuring employees to leave without making it public. The All India IT & ITeS Employees' Union (AIITEU) reported that approximately 20,000 technology professionals were affected by such unannounced layoffs in 2023, with actual numbers likely being even higher. But what exactly are silent layoffs?
Silent layoffs often involve giving employees a 30-day period to find a new position within the company. Failure to secure a new role typically results in termination. This method, according to AIITEU, is widespread and allows companies to quietly reduce their workforce, avoiding public scrutiny and potential backlash.
3,000 employees silently laid off by leading Indian IT service companies
Another report by the Nascent Information Technology Employees Senate (NITES) indicates that between 2,000 and 3,000 employees were silently laid off in the first five months of 2024 by leading Indian IT service companies.
"There are multiple ways in which companies are removing employees, and those who resist will be terminated immediately. Once your relieving letter marks you as 'terminated,' it becomes very difficult for that person to find another job," said NITES President Harpreet Singh Saluja to media.
Silent Layoffs vs. Quiet Firing
It is important to distinguish between silent layoffs and quiet firing. While both involve pressuring employees to leave, they differ in execution. Silent layoffs typically provide employees with a notice period, allowing them time to transition. Quiet firing, on the other hand, involves making an employee's role increasingly undesirable—by overloading them with tasks, assigning insignificant duties, or giving poor performance reviews—until they are compelled to resign.
Despite these differences, silent layoffs still have a significant impact on employees. Many of those going through this process are placed on performance improvement plans (PIPs), where they must quickly prove their ability to avoid termination. This often leads to stress and job insecurity, especially for those unable to secure new roles within the company. Experienced and higher-paid employees are particularly vulnerable in silent layoffs, as companies target them to reduce costs.
The Broader Implications
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.
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