Research throws light on those most affected by the 2022-2023 tech layoffs
Online learning platform 365 Data Science reveals surprising findings
NEW YORK, Feb. 01, 2023 (GLOBE NEWSWIRE) -- Research by the online learning platform 365 Data Science reveals surprising findings about the 2022-2023 tech layoffs. The team analyzed data from 1,157 public LinkedIn profiles to examine the characteristics of those laid off from tech companies.
The study helps understand who was affected and provides a distinct view of the reasons behind the layoffs and their impact on the job market. It also answers vital questions: Are the layoffs equally distributed between age groups and genders? How many workers found jobs? Who is still on the job market in 2023?
Tech companies—especially the giants—were on a hiring spree as the world moved online during the pandemic. But this over-hiring isn't sustainable in the current economic situation. In preparation for the recession, many resorted to mass layoffs.
Over 150,000 people were affected in 2022, and the wave continues, with more than 68,500 new job cuts in January 2023 alone. Is this an attempt to cut down the employee count to pre-pandemic levels?
The new research suggests there might be more reasons behind the layoffs.
Significant finding
The 365 Data Science team examines various characteristics of the laid-off employees—such as level of education, work experience, time on the job, and position—to find other explanations. The results are available in 365 Data Science's study report.
One significant finding is that the laid-off employees are educated and experienced—ruling out the hypothesis that employers let go primarily junior or inexperienced workers.
So, what factors might've influenced the selection criteria?
Interestingly, the largest group of laid-off employees in the study sample did not hold tech positions. Find out which teams were most impacted and read the analysts' insights deducted from the data.
Is it possible that specific jobs are beginning to be automated? Could that be part of the reason for the layoffs?
Microsoft (MSFT) and Google have already announced their plans to invest in AI-powered solutions like ChatGPT —so this seems like a viable explanation, although it certainly isn't the only one.
The study provides more insights into the characteristics of laid-off employees and the possible selection criteria. It also reveals that current layoffs are a considerable step back regarding equality and fairness in the tech sector.
