After a year in which technology companies announced massive layoffs, 2023 is looking no different — in fact, the year is starting off worse than 2022.
The problem: Big Tech companies like Amazon, Oracle, Microsoft, Salesforce and Facebook went on a hiring binge during the pandemic when lockdowns sparked a tech buying spree to support remote work and an uptick in e-commerce, and now they face revenue declines.
It’s not only tech giants who are conducting layoffs. Smaller tech firms were also caught up in pandemic-generated hypergrowth and are now suffering the consequences.
Although global IT spending is forecast to rise in 2023, with enterprise software and IT services experiencing the greatest growth, the overall increase is expected to be modest, with data center systems and communications services growing by less than 1%, according to market research firm Gartner. Meanwhile hardware sales are forecast to decline.