In 2023, after the Covid-19 period ended, there was a noticeable increase in layoffs within the IT booming companies.
Giants like Google and several others also experienced layoffs, affecting approximately 12,000 employees at Google.
Both IT services and product-based companies, including Tech Mahindra and Infosys, faced layoffs as well.
In a recent interview with The Indian Express, the IT Minister of State, Rajeev Chandrasekhar, explained the reasons behind these post-Covid layoffs.
He pointed out that people had overestimated the demand for digital products during the pandemic.
Rajeev Chandrasekhar stated, "If we look at the tech space, layoffs occurred post-Covid. It happened to companies like Google, Microsoft, Meta, and even smaller startups. When the world was emerging from Covid, everyone believed that the digital and digitisation boom would be a permanent phenomenon."
"People thought that remote work would become a permanent setup. However, now that we are witnessing a decline in Covid cases and the economy is stabilising, there's a balance between the digitised world and the traditional workspace. Some companies may have overestimated the demand and consumption of digital products, leading to resizing and rightsizing of organisations. In my opinion, it is a natural occurrence for companies, including both large enterprises and startups. The boom or bust scenario is somewhat built into the DNA of startups," he added.