Prominent companies such as TCS, Infosys, LTI-Mindtree, Tech Mahindra, and Wipro were among those that implemented significant layoffs. In contrast, HCLTech was the only major firm to add employees during this period, according to a report by the Times of India.

Understanding Silent Layoffs

A “silent layoff” refers to the practice of discreetly reducing the workforce without formal announcements or public disclosures. According to a Medium article discussing similar trends in America’s big tech companies, these layoffs can manifest in various forms: non-renewal of contracts, reduction in work hours, early retirement offers, or simply not filling vacant positions.

Impact on Indian IT Professionals

In 2024 alone, between 2,000 and 3,000 professionals from India’s leading IT companies lost their jobs, as per the Nascent Information Technology Employees Senate (NITES). Harpreet Singh Saluja, President of NITES, highlighted the various tactics companies use to remove employees. “Those who resist face immediate termination. A termination marked on a relieving letter severely hampers future job prospects,” Saluja told Moneycontrol.

Furthermore, employees are often required to sign non-disclosure agreements (NDAs) to receive their full severance payouts, revealed Saubhik Bhattacharya, General Secretary of AIITEU, in an interview with Moneycontrol.

A Global Trend

This wave of silent layoffs in India’s IT sector mirrors the global tech industry’s recent downsizing efforts. Major tech giants like Apple, Google, Amazon, Microsoft, Facebook, IBM, Intel, and SAP have all announced job cuts over the past 12 to 18 months, as reported by the Times of India.

Efforts to Enhance Profit Margins

In addition to layoffs, companies are also pushing to increase the workload on their remaining employees to boost profit margins. “Companies are increasing the number of hours each employee works,” Bhattacharya told Moneycontrol.

The Role of DoJobSecure

In response to these trends, platforms like DoJobSecure have emerged, aiming to support affected employees. DoJobSecure offers resources for job placement, legal advice on employment issues, and support for negotiating severance packages. As silent layoffs continue to affect thousands, such platforms provide crucial assistance to those navigating the challenging job market.

The issue of silent layoffs highlights the need for greater transparency and support mechanisms within the industry to protect employees’ rights and livelihoods.

Apple Lays Off Over 600 Employees

Apple laid off 614 employees, marking its first significant job cuts since the pandemic began. The affected employees were part of Apple’s special projects group, some of whom were working on the now-cancelled self-driving car project. The number could be higher, as some overseas employees were also affected.

Google Cuts Jobs in Python, Flutter, and Dart Teams

Google laid off a significant number of employees across various teams, including those working on Python, Flutter, and Dart. A Google spokesperson stated that the job cuts are part of a restructuring effort, with impacted employees having the option to apply for other roles within the company.

Amazon Reduces Roles in Its Cloud Division

Amazon is cutting hundreds of jobs in its cloud computing division, affecting sales, marketing, and technology teams for its brick-and-mortar stores. The layoffs aim to streamline operations and focus on core business objectives.

Intel Lays Off Employees at Headquarters

Intel confirmed it is laying off approximately 62 employees at its headquarters in Santa Clara, California. The layoffs are part of a reorganization of its Sales and Marketing Group led by Christoph Schell.

Google’s Real Estate and Finance Departments Hit by Layoffs

Several of Google’s teams, including its real estate and finance departments, experienced layoffs as part of cost-cutting measures. Affected employees can apply for other internal roles, with some positions moving to hubs like India, Chicago, Atlanta, and Dublin.

Amazon Web Services (AWS) Cuts Hundreds of Jobs

Amazon Web Services (AWS) cut several hundred jobs in April, including roles in sales, marketing, and technology. This is the latest in a series of job cuts by Amazon, aiming to streamline targeted areas.

Byju’s Lays Off 500 Employees

Edtech company Byju’s laid off around 500 employees, nearly 3% of its workforce, due to a funding crisis and investor unrest. The layoffs affect sales, marketing, and teaching roles as part of ongoing restructuring. In 2023, the company fired 4,500 employees.

Tesla Lays Off Thousands Amid Weak Sales

Tesla, owned by Elon Musk, laid off thousands of employees across multiple divisions. The layoffs aim to reduce Tesla’s global headcount by around 10% as the company attempts to control costs amid weakening sales and intensifying competition.

Ola Cabs Cuts 200 Jobs as CEO Steps Down

Ola Cabs is laying off around 10% of its workforce, or 200 employees. CEO Hemant Bakshi resigned only four months after taking the position. Co-founder Bhavesh Aggarwal will take over day-to-day operations.

HealthifyMe Lays Off 27% of Staff in Restructuring

Bengaluru-based health tech startup HealthifyMe laid off 150 employees, about 27% of its workforce, in a restructuring exercise. The layoffs primarily impacted sales and product teams. CEO Tushar Vashist stated the restructuring aims to make the Indian business profitable and expand in the US market.

Whirlpool Lays Off 1,000 Employees

Home appliances maker Whirlpool laid off around 1,000 salaried employees globally as part of cost-cutting efforts. The move is expected to save up to $400 million in costs this year. The company expects to incur about $50 million in restructuring charges in 2024.

Take-Two Interactive Lays Off 5% of Workforce

Take-Two Interactive, the publisher of GTA 6, is laying off around 5% of its workforce and cancelling several projects. Previously, the company had acquired Gearbox from the Embracer Group and confirmed a new Borderlands game was in development.

Telenor Lays Off 100 Employees at Headquarters

Norwegian telecom company Telenor announced it is laying off 100 employees and significantly reducing temporary staff and consultants as part of a reorganization. The company will also close a call center in the city of Rorvik.

In these uncertain times, it’s crucial to have a safety net. Visit DoJobSecure.com for personalized solutions to prepare against layoffs. Revolutionizing job security, DoJobSecure offers the world’s only dedicated subscription plan designed to protect against layoffs. Even if you lose your job, you can bounce back quickly with comprehensive support, including interview preparation, career enhancement, mental wellness services, placement support, and unemployment allowance. With DoJobSecure, you can confidently meet your financial and life commitments, enjoying peace of mind every step of the way.

The global layoffs are expected to impact teams handling user support, communications, content, and marketing. As part of the restructuring, TikTok’s global user operations team will be dismantled, with remaining employees reassigned to the company’s trust and safety, marketing, content, and product teams.

News of the layoffs was first reported by The Information. TikTok did not respond to a request for comment.

Some employees were informed of the layoffs on Tuesday evening, following The Information’s report, through a message from Adam Presser, the company’s head of operations, and Chief Brand and Communications Officer Zenia Mucha.

The layoffs had been planned for some time, potentially almost a year, but delays were caused by recent turnover in TikTok’s marketing, trust and safety, and operations teams, one employee told CNN.

These layoffs are not related to the legal and political challenges TikTok faces in the United States, which could result in a nationwide ban of the app, the source added.

It remains unclear how many employees will be affected. The Information reported that a “large percentage” of the approximately 1,000 employees working on the impacted teams could be laid off. In 2023, TikTok disclosed that it had 7,000 employees in the United States alone.

During such uncertain times, it’s crucial to have a safety net. Visit DoJobSecure.com for personalized solutions to prepare against layoffs. Revolutionizing job security, DoJobSecure offers the world’s only dedicated subscription plan designed to protect against layoffs. Even if you lose your job, you can bounce back quickly with comprehensive support including interview preparation, career enhancement, mental wellness services, placement support, and unemployment allowance. With DoJobSecure, you can confidently meet your financial and life commitments, enjoying peace of mind every step of the way.

Source: CNN

According to a report by Financial Express, One97 Communications, the parent company of Paytm, plans to significantly reduce employee costs this fiscal year. The company may cut 15-20 per cent of its workforce to save Rs 400-500 crore, potentially affecting 5,000-6,300 employees.

In FY23, the average cost per employee was Rs 7.87 lakh, with total employee costs for FY24 increasing by 34 per cent year-on-year to Rs 3,124 crore, raising the average cost per employee to Rs 10.6 lakh. The reduction process has reportedly begun, with over 1,000 employees terminated in December to streamline operations and reduce costs.

Despite investments in technology, merchant sales, and financial services, One97 Communications aims to optimize its cost structure by leveraging artificial intelligence and focusing on core business areas. High-performing employees are expected to be promoted to leadership roles as part of this strategy.

Financially, the company has faced challenges, recording a net loss of Rs 550 crore in the January-March quarter, compared to Rs 168 crore the previous year. Revenue from operations fell by 3 per cent year-on-year to Rs 2,267 crore in the same period. These difficulties began when the Reserve Bank of India (RBI) imposed restrictions on Paytm Payments Bank on January 31, preventing it from accepting new deposits and conducting credit transactions, significantly impacting fourth-quarter results.

In a letter to shareholders, Paytm’s Vijay Shekhar Sharma acknowledged the near-term impact on revenue and profitability from the RBI’s regulatory actions. He mentioned that the company faced disruptions in Q4, resulting in a one-time loss of Rs 227 crore due to impairment from investments in Paytm Payments Bank Limited (PPBL). Sharma projected revenue to slip to Rs 1,500 crore to Rs 1,600 crore in the first quarter of FY25, with improvements expected from the second quarter as certain products are reinstated and operating metrics show steady growth.

Despite these challenges, Paytm’s management remains optimistic about achieving profitability soon. The company plans to hire more sales executives to strengthen its merchant ecosystem and improve governance by appointing subject matter experts as advisors or independent directors. Brokerage firm Motilal Oswal Financial Services has adjusted its earnings estimates, expecting Paytm to achieve EBITDA breakeven by FY26, valuing the company based on 15x FY28E EBITDA and discounting it to FY26E at a rate of approximately 15 per cent.

In times of such uncertainties, it’s crucial to have a safety net. Visit DoJobSecure.com for personalized solutions to prepare against layoffs. Revolutionizing job security, DoJobSecure offers the world’s only dedicated subscription plan designed to protect against layoffs. Even if you lose your job, you can bounce back quickly with comprehensive support including interview preparation, career enhancement, mental wellness services, placement support, and unemployment allowance. With DoJobSecure, you can confidently meet your financial and life commitments, enjoying peace of mind every step of the way.

Source: Business Today