In 2023, major technology companies, including Facebook (Meta Platforms), Amazon, Apple, Microsoft, Netflix, and Google, experienced a substantial slowdown in hiring in India, with a reported 90% drop in active job postings compared to the previous year. According to data compiled by specialist staffing firm Xpheno for Economic Times, these tech giants are in a near-hiring pause, with active hiring numbers plummeting by more than 98%, reaching approximately 200 compared to their typical hiring volume in India.
This hiring slowdown coincides with broader challenges faced by the tech industry amid global economic headwinds, project ramp-downs, and sluggish revenue growth. The macroeconomic uncertainties and an overall economic slowdown have contributed to a significant reduction in hiring activities among these leading tech companies. The cohort’s current hiring status is described as being at its lowest point, impacting tech talent movements, particularly at the experienced lateral layers.
Prasadh MS, Head of Workforce Research at Xpheno, noted that the sustained low to no hiring activity throughout the year will likely continue affecting tech talent movements, emphasizing the need for smaller companies to exercise caution. Maintaining the status quo requires replacement hiring actions, with no significant net additions recorded in terms of talent.
As of December the previous year, active demand from the big tech cohort had already decreased by 78% compared to July 2022, marking nearly an 18-month low for the group, according to the data. The total number of active job openings globally for these big tech players and their affiliates is currently under 30,000, reflecting a broader trend of job cuts within the global tech industry.
Globally, major tech companies, including Microsoft, Amazon, and Google, have implemented substantial workforce reductions, resulting in hundreds of thousands of job cuts. In India, the combined workforce of Facebook, Amazon, Apple, Microsoft, Netflix, and Google comprises slightly less than 150,000 employees in their core operations and captives.
Rishi Jhunjhunwala, Senior Vice President covering IT at IIFL Securities, expressed the expectation that hiring may slowly start picking up in 2024 as some of the overcapacity is rationalized. While the growth outlook is yet to improve significantly, there is optimism that it should start improving gradually. However, caution is expected to persist in investment strategies until at least March, when the first round of rate cuts is anticipated. Additionally, the era of inflated salaries and numerous job offers is considered a thing of the past.
In summary, the hiring slowdown among major tech players in India reflects the broader challenges and uncertainties faced by the tech industry globally, prompting a cautious approach to talent acquisition and investment strategies in the short term.
