Google to Amazon: 5 major tech companies fired more than 50,000 employees in January 2023

In the last six months of 2022, plenty of employees were fired by several tech companies. But, the new year didn't bring relief to people as big tech giants like Google and Amazon laid off more than 50,000 employees in first month of 2023 which came as a big shock to many. The good thing is most of the companies promised to offer severance pay to the employees who were sacked. People who are on H1B visa in the US were hit hard by the layoff because they are required to find a new job in about 60 days of time or leave the country if they fail to do so. Here is a quick look at five major tech companies that fired more than 50,000 employees (in total) in January 2023 as part of their cost-cutting measures.

Layoff 2023: 5 major tech companies fired more than 50,000 employees in January 2023

Google

On January 20, Google announced the layoff of as many as 12,000 employees, which is about 6 percent of the company's workforce. While the search giant said that the layoff was done based on performance, but several employees declined this by saying on social media platforms that some people who got good performance reviews were also fired by Google. It is worth pointing out that Google employees who had given more than 10 years to the company were also asked to leave.

Google's CEO Sundar Pichai apologized for layoff of thousands of employees and also confirmed that the impacted employees will be given a severance package. This will include 16 weeks of salary, two weeks for every additional year at Google, and at least 16 weeks of GSU vesting. Google will also pay 2022 bonuses and remaining vacation time. Other benefits include 6 months of healthcare, job placement services, and immigration support for those affected.

Amazon

On January 4, Amazon announced in a blog post that the company plans to make 18,000 job cuts and this will be done across globe. The process of layoff started sometime back as many people posted about job leads on LinkedIn. Amazon has also promised to offer relief packages that will include a separation payment, transitional health insurance benefits, and external job placement support.

Microsoft

Microsoft is yet another major tech company that fired thousands of employees in the first month of 2023. The company announced that the layoff process will be conducted through the end of FY23 Q3. Interestingly, the tech giant also revealed that it is eliminating many roles, but it also has plans to hire more people in strategic areas.

As for monetary benefits, Microsoft announced that the laid off employees will get above-market severance pay, continuing healthcare coverage for six months, continued vesting of stock awards for six months, career transition services, and 60 days' notice prior to termination, regardless of whether such notice is legally required.

Dell

Dell, which is one of the established and popular computer brands, also announced its plans to layoff as many as 6,650 jobs. It is believed that PC demand has dropped and so, the companies are witnessing lower sales, resulting in low revenue growth.

"What we know is market conditions continue to erode with an uncertain future. The steps we've taken to stay ahead of downturn impacts – which enabled several strong quarters in a row – are no longer enough. We now have to make additional decisions to prepare for the road ahead," Dell said in a blog post.

IBM

IBM also joined the wave of layoffs by technology companies, and fired 3,900 employees. The tech hub said that the layoff drive was a part of some asset divestments. The company has missed its annual cash target, dampening cheer around beating revenue expectations in the fourth quarter.