Is the next economic crisis on the horizon? Technology companies are predicting a market collapse with job cuts by 2023!

After a spate of tech job cuts last year, more companies are planning to cut their workforces again in 2023. This comes after the tech space saw a surge in consumer demand at the height of the coronavirus pandemic.

Now that people are no longer forced to stay home, companies are beginning to see a slowdown in growth due to declining sales. At the same time, federally-ordered interest rate hikes to combat inflation and the possibility of a recession are all factors that are helping to hit the technology industry.

One of the major technology giants, Microsoft, recently announced plans to lay off 10,000 employees. The company said victims would leave the company through March 31 in anticipation of slowing revenue growth. While all departments will be affected, the sales and marketing teams will lose more staff.

CEO Satya Nadella commented:

“As we saw customers accelerate their digital spending during the pandemic, we are now seeing them optimize their digital spending to do more with less. We’re also seeing companies across industries and geographies exercise caution as some parts of the world are in a recession and others are anticipating one.”

The tech company’s job cuts began in July 2022, when it said it was shedding 1 percent of its workforce. This follows a massive hiring of 181,000 people in 2021. Microsoft informed the affected 1% in July that their roles were being cut. In October, the multinational tech company confirmed further job cuts that involved about 1,000 workers. Prior to its latest round of layoffs, which began in 2022, the last time Microsoft announced a round of layoffs was in 2017, after the start of its new fiscal year.

Tech companies plan more job cuts

Another tech company planning a new round of job cuts is Amazon.com. The company announced Wednesday that it will lay off more than 18,000 employees, which is expected to be its largest workforce reduction in 28 years. According to CEO Andy Jassy, workers in the human resources and stores sections will be the hardest hit. Amazon had originally planned to reduce its workforce by 10,000 workers.

U.S. cloud software company Salesforce announced earlier this year that it would lay off more than 7,000 people. The company plans to cut 10 percent of its staff and close some agent spaces. Shedding more light on the decision, co-CEO Marc Benioff wrote:

“I’ve been thinking a lot about how we got to this point. While our revenue accelerated during the pandemic, we hired too many people, which led to the economic downturn we are currently experiencing, and I take responsibility for that.”

Other tech jobs being cut include Amazon laying off 11,000 employees, Twitter reducing its workforce by 3,700, and more. Workers at Stripe, Shopify and Netflix have also been affected by layoffs.