Rising Layoffs: Sectors, roles most-affected and the way forward
Between 2023 and 2024, India witnessed a wave of layoffs across several industries, with the technology sector bearing the most brunt. Big tech giants like Google, Amazon, and Microsoft announced job cuts that affected premier college placements too.
In the first half of 2023, over 2.12 lakh tech employees were laid off globally, with more than 27,000 of these layoffs occurring in India, according to layoffs.fyi. This trend persisted in 2024, with reports indicating that leading Indian IT services companies laid off between 2,000 and 3,000 professionals. Other sectors, including retail and manufacturing, have also faced downsizing, further compounding the issue.
Layoffs in recent years can be attributed to several key factors with economic downturns being a predominant driver, Dr Archana Shrivastava, professor at Birla Institute of Management Technology explained. During recessions or periods of reduced consumer spending, organisations are compelled to lower operational costs, often by streamlining their workforce. “Additionally, the growing adoption of technological advancements, including automation and artificial intelligence, frequently renders specific roles redundant, contributing to job reductions. Moreover, skill mismatches within the workforce also play a significant role, as companies seek to optimize efficiency and align talent with evolving business needs,” she said.
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However, PK Agarwal, Dean, UC Santa Cruz Silicon Valley Professional Education, said the period of layoffs is not a representative of a shrinking economy, it is a reaction to the change in skills that are needed at almost every level of industry. “In a time of change, companies value the mindset of the learner. People who are agile enough to be early adopters despite uncertainties are likely to find a great place in the new economy,” he said.
Most-affected sectors, roles
While no industry has been entirely immune, some have been hit harder than others. The technology sector, once a beacon of growth, has seen mass layoffs from giants like Meta, Google, and Amazon, citing over-expansion during the pandemic and subsequent market corrections.
Here are the sectors most affected by layoff (Graphics by Angshuman Maity)
According to IIM Raipur director professor Ram Kumar Kakani, sectors like technology, retail, and finance tend to be most-affected. “The tech industry, for example, often expands aggressively during growth periods and recalibrates during economic slowdowns. Retail faces pressure from changing consumer habits and economic conditions. Similarly, the finance sector experiences volatility due to its dependence on economic cycles. These industries are more sensitive to external factors like demand fluctuations, cost pressures, or technological disruptions,” he said.
The toll of layoffs is not just financial but deeply personal. Atin Verma, a Mumbai-based IT marketer got six hours to pack his belongings from the office and just two days to accept the laid-off letter. His last job was with a cybersecurity company as the head of marketing. While attending a meeting with his manager he was informed that he was laid off.
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“It felt like the ground had shifted beneath my feet. I was shocked and asked questions about my performance but nothing worked and they gave me time till Monday to accept the resignation,” said Verma who is now working to set up his business and is also looking for job opportunities.
Similarly, Mumbai-based graphic designer Kamlesh Kamtekar who, because of being laid off, had to transition his professional career and to work as an auto driver. With 14 years of experience and a previous payroll of Rs 75,000, he is now forced to take this unconventional route.
Financial planning, upskilling, networking: Way forward
For those affected by layoffs, there are several steps to regain stability and even thrive. Financial planning is crucial, including prioritising essential expenses and exploring severance benefits or unemployment support. Upskilling and reskilling through online education platforms can help workers transition into new roles or industries. Networking is another vital strategy, as reaching out to former colleagues, attending industry events, and leveraging platforms like LinkedIn can uncover new opportunities. Additionally, coping with the emotional challenges of a layoff is essential; seeking professional mental health support or joining peer groups can help manage stress and build resilience.
Employees, according to Shantanu Rooj, founder and CEO of TeamLease Edtech, are exploring several courses like MBA for people in general management roles and MTech for people in technical roles. The trend is being seen across the spectrum – people in top job roles are also looking at adding specialisations and additional credentials to themselves. Today, universities are seeing about 50 per cent of their enrolments in online courses coming from employed learners, he added.
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Specialized MBA or master’s programmes in digital, medical, or data science fields are becoming more popular because they create super-specialised capabilities, Amit Saneja, CEO, Educate Online said. “Financial tools and NBFC support are also making these courses more accessible to a new audience, making them affordable and attractive options,” he added.
Would this trend continue?
The World Economic Forum’s latest Future of Jobs Report highlights the growing impact of AI on the workforce. According to the report, 41 per cent of companies plan to reduce their workforce due to AI-driven automation. While AI is expected to displace 92 million jobs by 2030, it is also projected to create 170 million new roles, signaling a significant shift in the global employment landscape.
A report by edForce, an Indian upskilling platform, reveals that 46% of large organisations, particularly in the USA and Europe, use AI-driven and VR-based learning for effective skill retention. Additionally, 53 per cent prioritise digital and AI tools to enhance learning and development (L&D), boosting employee engagement and aligning training with real-time industry needs.
However, budget constraints limit the adoption of these technologies, especially in India and among small and medium enterprises.
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To address skill gaps, 66 per cent of organisations focus on personalised learning paths, aligning training with specific roles and career goals. This tailored approach fosters continuous learning, improves skill retention, and builds a more capable workforce.
For instance, Roshni and Shubham Chellani, a couple working at a multinational company, were laid off just days after their wedding. They faced financial uncertainties, including a home loan and H-1B visa constraints, which added to the pressure of job hunting in the US. Roshni found success through networking and tailoring resumes for different job applications, ultimately securing a position as a system test engineer.
According to Shubham Tripathi, HR professional with experience of nearly 14 years in industry, government should take the lead and provide economic stimulus, promote innovation, and protect vulnerable sectors and companies can invest in reskilling, transparency, and sustainable growth. Individuals on the other hand, can stay agile, pursue continuous learning, and explore emerging industries.
Moreover, IIM Raipur director is of the opinion that political changes can also influence job markets in the future. If Trump’s return leads to policies that stimulate domestic growth, we might see an increase in job creation in certain industries. However, job market trends depend on a mix of factors, including global economic stability and market demand.
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While layoffs paint a bleak picture, they also highlight opportunities for change and adaptation. As industries evolve, workers can explore emerging fields such as green energy, healthcare, and technology-driven services. Governments and organisations also have a role to play in providing support systems and retraining initiatives to ensure a resilient workforce. The journey after a layoff is not easy, but with the right resources and strategies, individuals can rebuild and thrive in a rapidly changing world.
(With inputs from Sheen Kachroo)
This article was originally published by a indianexpress.com . Read the Original article here. .