International Journal for Multidisciplinary Research (IJFMR)
E-ISSN: 2582-2160 ● Website: www.ijfmr.com ● Email: editor@ijfmr.com
Study on Layoff of Employees in Big Tech
Organisation
Ujjwal Kumar1, Dr. Gaurav Gupta2
1Student, School of Business, Galgotias University, Greater Noida (UP)
2Assistant Professor, School of Business, Galgotias University, Greater Noida (UP)
Abstract
Layoff of employees refers to the termination of employment of a group of employees by an organization
due to factors such as financial difficulties, restructuring, or downsizing. This process typically involves
the reduction of the workforce, resulting in the release of employees from their jobs. Layoffs can have
significant effects on both the affected employees and the organization, including the loss of institutional
knowledge, decreased morale and productivity, and financial costs associated with severance packages
and rehiring. Employers may choose to implement layoffs as a last resort, after exploring alternative
strategies to address their business needs.
In the previous few years, the layoff of employees has done on a huge amount in big tech organizations
and now it becomes a vogue for every organization. The trend of layoffs is growing year by year, as
companies across the world lose revenue due to the coronavirus disease 2019 (COVID-19) pandemic,
many are facing the need for mass layoffs. A number of tech firms, including Microsoft, Twitter, and
Meta, were already in the hold of this layoff wave. More than 1.5 lakh tech company workers faced job cuts
in 2022.
According to the most recent data from the year 2023 to date, more than 1,00,000 people have been fired
in tech companies, i.e., 3300 people have been fired daily, and it is not just a small pearl company that
has fired; all the big companies have fired a maximum, followed by Amazon 18000, Google 12000,
Facebook 11000, Microsoft 10000, Intel, and so on. Not only tech companies, but also banks and auto
manufacturing companies have laid off their employees. The question now is, "Why do companies lay
off such large numbers of employees?" This research article seeks to assess the effectiveness of layoffs
in the economy.
Keyword: Layoff, Inflation, Uncertain economy, and Pandemic.
1. INTRODUCTION
Layoffs are a worldwide occurrence that occurs when a company is experiencing financial difficulties,
restructuring, or downsizing. Companies around the world have had to resort to layoffs as a method of
survival over the years, resulting in a huge impact on the workforce and the economy.
The COVID-19 epidemic has also contributed to an increase in global layoffs. Due to constraints, many
enterprises were forced to close temporarily or permanently, resulting in huge employment losses
IJFMR23022794 Volume 5, Issue 2, March-April 2023 1
International Journal for Multidisciplinary Research (IJFMR)
E-ISSN: 2582-2160 ● Website: www.ijfmr.com ● Email: editor@ijfmr.com
worldwide. As the pandemic continues to have an impact on the economy, layoffs are likely to remain a
major issue for businesses worldwide.
"Layoffs can be a difficult and emotional experience for both the employer and the employees." While they
are required for a company's survival, they must be handled with empathy, honesty, and professionalism.
Clear communication, appropriate severance pay and benefits, and continuing support and resources can help
alleviate the strain on affected employees and ensure they feel valued and respected during this trying time.
As an employer, you must prioritize your employees' well-being and maintain open communication lines to
help them effectively manage the transition phase." (According to Julie Zhuo, former Facebook VP of
Product Design and author of "The Making of a Manager")
"Layoffs are never easy, but they can be managed in such a way that the impact on affected employees and
the company as a whole is minimized." It is critical to approach layoffs carefully, taking into account the
long-term needs of the business as well as the well-being of the staff. Wherever possible, employers should
give clear information and support, as well as possibilities for retraining or redeployment. Companies can
negotiate layoffs in a polite and responsible manner by prioritising compassion and care, respecting the
dignity of their employees and keeping their reputation as a responsible employer." (According to David
Ballard, PsyD, is the American Psychological Association's Director of Applied Psychology.)
Figure 1: No. of Layoff of employees Globally
So far, 219 tech companies have laid off 68,149 employees in 2023, according to tracking site Layoffs.
fyi. till date.
Large technology companies have been known to make major employment losses, especially during times
of financial crisis or reorganization.
IJFMR23022794 Volume 5, Issue 2, March-April 2023 2
International Journal for Multidisciplinary Research (IJFMR)
E-ISSN: 2582-2160 ● Website: www.ijfmr.com ● Email: editor@ijfmr.com
Due to the impact of the COVID-19 pandemic on the ride-hailing sector in 2020, Uber lay off around
3,700 people. Similarly, Cisco Systems revealed intentions to lay off around 13,000 people as part of a
reorganization effort in 2017, while IBM laid off approximately 3,000 employees the same year.
It's worth mentioning that the technology industry is recognized for its rapid speed of invention and
disruption, which can cause changes in market demand and make it difficult for some businesses to remain
competitive. As organizations adapt to changing market conditions, this may result in layoffs or
restructuring activities.
1.1 Amazon layoff of over 27000 employees.
Amazon is an American multinational technology company that specializes in e-commerce, digital
streaming, artificial intelligence, and cloud computing
Amazon's e-commerce platform is one of the largest in the world, selling everything from books and
electronics to clothing and household items. Its digital streaming service, Amazon Prime Video, offers
movies, TV shows, and original content.
Amazon layoff about 18000 employees in the month of November and the number increased on January
23 again they laid off about 9000 employees.
According to the media report company officials said “Uncertain economy and rapid hiring” are the
reason behind the job cuts.
1.2 Google announced plans in January to lay off around 12,000 workers globally.
Google company specializes in Internet-related services and products. Google's core product is its search
engine, which is widely regarded as one of the most powerful and accurate search engines on the internet.
Google offers a wide range of products and services, including Google Maps, Google Drive, Google
Photos, Google Docs, and YouTube. Google also offers a range of hardware devices, including
smartphones, laptops, and smart speakers, as well as its own operating system, Android.
After the announcement in Google about layoffs, there are more than 12,000 workers globally were
fired. These layoffs begin in the US. More than 450 Indian employees were also affected by it, according
IJFMR23022794 Volume 5, Issue 2, March-April 2023 3
International Journal for Multidisciplinary Research (IJFMR)
E-ISSN: 2582-2160 ● Website: www.ijfmr.com ● Email: editor@ijfmr.com
to Business Today (BT) the companies are also planning to second layoff. when the questions were
asked to the CEO of the company, they said that We are very, very focused on this set of opportunities
we have. And I think there’s a lot of work left. There’s also an important inflation point with AI. where
we can, we are prioritizing and moving people to our most important areas, so that is ongoing work.
The organizations are planning to increase their efficiency by 20% if it is possible then the question also
arises how can a company increase its efficiency by 20% if they are laying off their employees? Pichai
responded that They are looking at every aspect. Also, he could not confirm the second round of layoffs
in the organization but it is obvious that the corporation is concentrating on increasing productivity and
giving priority to crucial sectors.
The organization said that the company was forced to lay off employees due to over-hiring in the last
two years during the Covid-19 pandemic.
1.3 Microsoft discloses the plan to lay off 10,000 employees. (CNBC Media Report)
Microsoft is a company with a wide range of software, hardware, and other technology-related products
and services. Soon as the Windows operating system, which is used by the majority of personal
computers worldwide.
Microsoft CEO Satya Nadella revealed in a blog post on January 18 that the business would be
eliminating nearly 5% of its staff, affecting 10,000 individuals.
The CEO attributed the downsizing move to the company's desire to match its cost structure with its
revenue structure while investing in areas where the company anticipates long-term growth.
The company’s officials said that, due to the macroeconomic conditions and changing customer
priorities, we are eliminating roles in some areas. We will continue to hire in the key strategic areas.
2. OBJECTIVES OF THE STUDY
The main objectives of studying employee layoffs may vary depending on the specific research focus and
context, but some common objectives may include:
a) Understanding the causes of layoffs: One objective of studying employee layoffs is to understand
the factors that lead to them, such as changes in market demand, organizational restructuring, or
technological advancements. By understanding these causes, organizations can potentially take steps
to prevent or minimize the need for layoffs in the future.
b) Examining the impact on affected employees: Another objective of studying employee layoffs is to
understand the impact on the individuals who are laid off, including their financial, social, and
emotional well-being. This understanding can help organizations provide better support and resources
to employees who are affected by layoffs.
IJFMR23022794 Volume 5, Issue 2, March-April 2023 4
International Journal for Multidisciplinary Research (IJFMR)
E-ISSN: 2582-2160 ● Website: www.ijfmr.com ● Email: editor@ijfmr.com
c) Assessing the impact on the organization: A third objective of studying employee layoffs is to
examine the impact on the organization as a whole, including its financial performance, productivity,
and reputation. By understanding the impact of layoffs on the organization, organizations can make
informed decisions about when and how to implement layoffs.
d) Identifying best practices: Finally, a key objective of studying employee layoffs is to identify best
practices for managing layoffs, such as communication strategies, severance packages, and
outplacement services. This knowledge can help organizations better manage layoffs in the future and
minimize the negative consequences for both the organization and the affected employees.
3. RESEARCH METHODOLOGY
Research methodology on employee layoff would depend on the specific research question, context, and
data sources available. However, in some common research methodologies that are used to study
employee layoff, data was collected from secondary sources and qualitative sources on the base of surveys
of those who have been working in the industry for a long in various sectors of businesses. We go through
the different articles and published journals and case studies to analyze the impact and increasing influence
in different sectors of the business.
Quantitative research involves collecting and analyzing numerical data through surveys, questionnaires,
or other standardized measures. Quantitative research can be useful for understanding the prevalence of
layoffs, the impact on employees, and the factors that contribute to layoffs. It can also help identify
patterns and correlations between different variables.
Qualitative Research involves collecting and analyzing non-numerical data through interviews, focus
groups, or observations. Qualitative research can be useful for gaining an in-depth understanding of the
experiences and perspectives of employees who have been laid off, as well as the factors that contribute
to layoffs and their impact on the organization.
IJFMR23022794 Volume 5, Issue 2, March-April 2023 5
International Journal for Multidisciplinary Research (IJFMR)
E-ISSN: 2582-2160 ● Website: www.ijfmr.com ● Email: editor@ijfmr.com
The data is gathered in the form of a questionnaire and the basic interpretation is done and draws
conclusions accordingly.
The case study involves conducting an in-depth analysis of a particular organization or group of
organizations that have implemented layoffs. Case studies can provide rich insights into the specific
factors and strategies that led to the layoffs, as well as the impact on affected employees and the
organization.
4 RESULT AND DISCUSSION
The expected outcomes of a study on the layoff of employees may depend on the specific research focus
and context, but some common expected outcomes may include:
• Identification of factors that contribute to layoffs: One expected outcome of a study on employee
layoffs is the identification of the factors that contribute to them. This knowledge can help
organizations make informed decisions about when and how to implement layoffs, as well as develop
strategies to prevent or minimize the need for future layoffs.
• Understanding the impact on affected employees: A second expected outcome of a study on
employee layoffs is a better understanding of the impact on affected employees, including their
financial, social, and emotional well-being. This knowledge can help organizations provide better
support and resources to employees who are affected by layoffs.
• Understanding the impact on the organization: A third expected outcome of a study on employee
layoffs is a better understanding of the impact on the organization as a whole, including its financial
performance, productivity, and reputation. This knowledge can help organizations make informed
decisions about when and how to implement layoffs, as well as develop strategies to mitigate the
negative consequences for the organization.
• Development of best practices: Another expected outcome of a study on employee layoffs is the
development of best practices for managing layoffs, such as communication strategies, severance
packages, and outplacement services. This knowledge can help organizations better manage layoffs
in the future and minimize the negative consequences for both the organization and the affected
employees.
• Contribution to the body of knowledge: Finally, a study on employee layoffs can contribute to the
overall body of knowledge on the topic, helping to advance our understanding of the factors that
IJFMR23022794 Volume 5, Issue 2, March-April 2023 6
International Journal for Multidisciplinary Research (IJFMR)
E-ISSN: 2582-2160 ● Website: www.ijfmr.com ● Email: editor@ijfmr.com
contribute to layoffs, their impact on affected employees and organizations, and strategies for
managing layoffs. This knowledge can be valuable to both researchers and practitioners in the field.
5. CONCLUSION
Mass layoffs may have a profound effect on the impacted personnel as well as the businesses concerned.
Mass layoffs can result in a variety of problems for the impacted personnel, including financial hardship,
employment uncertainty, and mental misery. Employees who are laid off frequently struggle to locate
new work or wind up taking lower-paying positions to make ends meet. Furthermore, the loss of work
may have an impact on communities, families, and the whole economy.
From the standpoint of the affected businesses, mass layoffs may be brought on by financial challenges
or restructuring initiatives. However, mass layoffs can also result in worse morale among the surviving
employees, unfavorable press, and legal issues.
6. ACKNOWLEDGMENT
I would like to express my sincere appreciation to my mentors and all, of them who have contributed to
the completion of this project. I also like to thank my professor, Liberian, for her guidance, support, and
expertise throughout the project. Her valuable insights and suggestions have greatly improved the quality
of my work.
I am also grateful to my classmates, hostel mates, and all of my friends, for their assistance in data
collection and their feedback. Their contributions have been very important to the success of this project.
further, I would like to acknowledge the support of my university, which provided me with proper
guidance and support and give me the opportunity to work on this research. Their generosity has enabled
me to conduct the research and complete the project successfully.
Finally, I would like to express my gratitude to my family and friends for their encouragement and support
throughout the project. Their unwavering support has been a source of strength and inspiration.
Once again, I would like to thank all those who have contributed to my work. Their help and support have
been invaluable, and I am deeply grateful for their contributions.
7. REVIEW OF THE LITERATURE
A review of the literature on employee layoffs would involve a comprehensive analysis of existing
research and academic publications on the topic. The purpose of a literature review is to provide a
summary and synthesis of the current state of knowledge on a particular topic, as well as to identify gaps
in the existing research that can be addressed through further study. Some specific issues that might be
covered in a literature review on employee layoffs could include:
• The economic and organizational factors that contribute to layoffs, such as changes in market demand,
mergers and acquisitions, and technological advancements.
• The impact of layoffs on affected employees, including their financial, social, and emotional well-
being, as well as their job prospects and career trajectories.
• The impact of layoffs on the organization, including its financial performance, productivity, and
reputation, as well as the implications for remaining employees.
• Best practices for managing layoffs, such as effective communication strategies, fair and equitable
severance packages, and outplacement services.
IJFMR23022794 Volume 5, Issue 2, March-April 2023 7
International Journal for Multidisciplinary Research (IJFMR)
E-ISSN: 2582-2160 ● Website: www.ijfmr.com ● Email: editor@ijfmr.com
• The role of government policies and regulations in managing layoffs, such as unemployment benefits,
worker retraining programs, and laws governing the process of layoffs.
A review of the literature on employee layoffs through research papers involves analyzing academic
publications that have used quantitative, qualitative or mixed research methods to investigate the
phenomenon of layoffs. Some examples of relevant research papers on layoffs include:
8. REFERENCES
1. "Layoffs, top executive compensation, and firm performance" by Y. Kim, S. Park and J. Park (2017)
2. "The effects of job displacement on health: Evidence from the mass layoffs survey" by K. Burgard,
J. Brand and S. House (2009)
3. "Managing layoffs: A systematic review and recommendations for future research" by J. Brockner,
D. De Cremer and S. Spreitzer (2019) -
4. "The impact of layoffs on firm reputation: A longitudinal study" by J. Acosta-Prado, M. Hitt and C.
Carnabuci (2019)
5. "Layoffs and survivor reactions: A social comparison perspective" by J. Greenberg and R. Folger
(1983)
Web sources
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3. https://timesofindia.indiatimes.com/business/international-business/explained-why-tech-giants-are-
laying-off-staff-globally/articleshow/97179972.cms
4. https://www.mightyrecruiter.com/recruiter-guide/hiring-glossary-a-to-z/layoff/
5. https://timesofindia.indiatimes.com/business/india-business/options-in-india-for-those-sacked-in-
the-us/articleshow/97363109.cms
6. https://www.businesstoday.in/technology/news/story/more-google-layoffs-soon-heres-what-ceo-
sundar-pichai-has-to-say-about-it-376941-2023-04-11
7. https://docs.google.com/forms/d/e/1FAIpQLScsGaWriJ78r2IDTzOrQSOn42Jda09TraNGQV
PSSEjnl4g9yA/viewform?usp=sf_link
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