Have Tech Companies Frozen Hiring? | Unbreak the News with Prema Sridevi | Ep: 95
Tech Layoffs, Top IT companies and tech firms in India like Infosys, Wipro and the likes are revoking offer letters given to potential employees. Many youngsters who were given offer letters after several rounds of exhaustive interviews are today staring at a bleak future. The looming recession fears and the apprehensions over the growth slowdown in IT industries are pushing companies to take harsh HR decisions. How bad is this situation really? Prema Sridevi UnBreaks this News for you!
(Produced below are the abridged version of the transcripts of the video explainer from Episode: 95 | UnBreak the News with Prema Sridevi | Title: Have Tech Companies Frozen Hiring?)
Tech Layoffs 2023
Top IT companies and tech firms in India like Infosys, Wipro and the likes are revoking offer letters given to potential employees. Many youngsters who were given offer letters after several rounds of exhaustive interviews are today staring at a bleak future. The looming recession fears and the apprehensions over the growth slowdown in IT industries are pushing companies to take hard HR decisions. How bad is this situation? Let’s UnBreak this News!
The writing is on the wall. IT companies are stepping up measures to face a possible economic meltdown. Some companies have postponed the variable pay to their employees, others have slashed the pay, and many have just deferred it indefinitely. Numerous companies have frozen their recruitment processes. Others have revoked the letters sent to potential employees. Companies have enlisted various reasons for not hiring people who were promised jobs. Amongst all the excuses, what’s missing is the real reason: fears of a looming recession.
In another communication sent by an IT company to a potential employee, the HR department says: “We regret to inform you that we cannot take your candidature forward as you have not complied with the company’s assessment guidelines.”
According to media reports, even Facebook, Google, and Microsoft have put their new recruitments of freshers on hold. Recently, the top boss of Wipro, Rishad Premji, disclosed that his company had fired around 300 employees for moonlighting. Moonlighting is a practice where an employee secretly takes up another job while on a company’s payroll.
However, market watchers say the real reason behind these Tech Layoffs is not what meets the eye. This grim scenario is not just in India. Reports suggest that in the Tech sector alone, more than 42,000 workers in the US have been laid-off in mass job cuts in 2022.
In a report released this week, the United Nations has warned that the policies of rich nations are pushing the world towards a recession that will cause worse damage than Covid-19. The report further states that India would grow at 5.7 per cent in 2022 and further slow down to 4.7 per cent in 2023.
The UN has said excessive policy choices could trigger an economic downturn worse than the 2008 recession. Scary as it may seem, all hope is not lost. There is still time to induce radical reforms, take corrective steps, and calm the markets. The winters and the upcoming new year will test the resilience of the Indian economy.
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