New Delhi,UPDATED: Dec 27, 2023 13:24 IST
As Silicon Valley navigates through the tough terrain of economic slowdown and layoffs, the impact has significantly affected the Indian tech space as well. Tech giants, including Google, Amazon, Meta, Apple, and others, are reportedly slowing down their recruitment processes, with a possibility of pausing hiring in the future.
According to a recent report by ET (Economic Times), these tech giants are hitting the brakes on hiring due to the global economic slowdown. Compared to 2022, the active job postings of these tech giants in India have plunged by 90 percent, as the report quotes data gathered from Xpheno, a staffing firm. Currently, companies have as few as 200 open positions in India, representing a 98 per cent decrease from their typical hiring levels.
The hiring slowdown from major tech giants aligns with the challenging times the industry is currently navigating. The global economy is slowing down, and companies are grappling with the task of boosting revenues, implementing restructuring measures, and experiencing a slowdown in projects.
“The low to no hiring action maintained by the cohort over the year will continue to impact tech talent movements, especially in the experienced lateral layers,” said Prasadh MS, Head of Workforce Research at Xpheno, in a statement to ET. He further highlighted that the hiring pause in top companies serves as a signal to exercise caution in smaller companies. “Maintaining the status quo requires replacement hiring action, with no significant net talent additions recorded,” he added.
According to IT analysts and industry experts, a cautious approach to hiring is expected to continue for the next two quarters. This is due to weakened demand and a focus on improving employee utilisation.
The data further reveals that the economic slowdown, coupled with concerns about a potential recession, had a dramatic impact on the tech sector, resulting in a sharp decline in hiring. By December 2022, active demand from major tech companies had plummeted by 78 per cent compared to July, reaching a 1.5-year low.
“The total number of active listed openings globally is currently under 30,000 across the Big Tech players and their affiliates. Globally, Big Tech companies, including Microsoft, Amazon and Google, have cut hundreds of thousands of jobs,” the report added.
Notably, the major tech giants, including Facebook, Amazon, Apple, Microsoft, Netflix, and Google, currently have a workforce of just under 150,000 people in their core operations and captives in India. However, 2023 witnessed a significant hiring slowdown.
Rishi Jhunjhunwala, senior vice-president covering IT at IIFL Securities, offers cautious optimism: “‘Hiring should slowly start picking up in 2024 as some of the overhiring from 2023 gets adjusted. While the growth outlook hasn’t fully recovered, there are signs of gradual improvement in the coming year.'”