Biggest tech startup layoffs worldwide 2020-2023

As of January 2023, the tech startup with the most layoffs was Amazon, with 18,000 layoffs as of January 4, 2023. It was followed by Meta, which announced 11,000 job cuts on November 9, 2022.

Layoffs n in the technology industry

Overall, layoffs across all industries began in 2020 due to the outbreak of the coronavirus (COVID-19) pandemic, with tech layoffs peaking in 2022. At the end of that year, more than 150 thousand employees had been fired worldwide. From retail to finance and education, all sectors are suffering from this widespread downsizing. However, consumer tech startups were hit the most, with almost 20,000 layoffs registered as of mid-December 2022. Most job losses happened in the United States, where tech giants like Amazon, Meta, and Twitter are based.

Reasons behind increasing tech layoffs

Layoffs in the technology sector started with the COVID-19 pandemic in 2020 when entire cities were in lockdown and mobility was restricted. Although restrictions loosened up in 2021, events such as the Russia-Ukraine war, the downturn in Chinese production, and rising inflation had a significant impact on the tech industry and continue to represent major concerns for tech companies. As a consequence, companies across the world have yet to overcome all economic challenges, examples of which are rising material and labor costs, as well as decreasing profit margins. To address such difficulties, tech companies have appointed business plans. For instance, in the United States, tech firms planned to focus more on consumer retention, automating software, and cutting operating expenses.