The Indian technology sector is feeling the repercussions of the global economic downturn, with major tech giants like Google, Amazon, Meta, and Apple reportedly scaling back their recruitment efforts. Active job postings by these companies have witnessed a steep decline of 90 percent compared to the levels in 2022.
As Silicon Valley grapples with economic challenges and layoffs, the impact is reverberating in the Indian tech landscape. Tech behemoths, including Google, Amazon, Meta, Apple, among others, are reportedly slowing down their recruitment processes, and there is a possibility of a complete pause in hiring in the future.
According to a recent report by the Economic Times (ET), these tech giants are putting the brakes on hiring due to the global economic slowdown. Job postings by these companies in India have plummeted by 90 percent compared to 2022, as per data from Xpheno, a staffing firm. Presently, companies have as few as 200 open positions in India, reflecting a staggering 98 percent decrease from their usual hiring levels.
The slowdown in hiring from major tech giants is aligned with the challenging economic landscape the industry is currently navigating. The global economy is decelerating, and companies are grappling with the need to boost revenues, implement restructuring measures, and manage a slowdown in projects.
Prasadh MS, Head of Workforce Research at Xpheno, emphasized that the low to no hiring activity by these companies will continue impacting tech talent movements, especially in the experienced lateral layers. He highlighted that the hiring pause in top companies serves as a signal to exercise caution in smaller firms, stating that maintaining the status quo requires replacement hiring action with no significant net talent additions recorded.
According to IT analysts and industry experts, a cautious approach to hiring is expected to persist for the next two quarters due to weakened demand and a focus on improving employee utilization.
The data further reveals that the economic slowdown, coupled with concerns about a potential recession, has had a significant impact on the tech sector, resulting in a sharp decline in hiring. By December 2022, active demand from major tech companies had plummeted by 78 percent compared to July, reaching a 1.5-year low.
“The total number of active listed openings globally is currently under 30,000 across the Big Tech players and their affiliates. Globally, Big Tech companies, including Microsoft, Amazon, and Google, have cut hundreds of thousands of jobs,” the report added.
It’s noteworthy that major tech giants, including Facebook, Amazon, Apple, Microsoft, Netflix, and Google, currently have a workforce of just under 150,000 people in their core operations and captives in India. However, 2023 has witnessed a significant hiring slowdown.
Rishi Jhunjhunwala, Senior Vice President covering IT at IIFL Securities, offers cautious optimism: “Hiring should slowly start picking up in 2024 as some of the overhiring from 2023 gets adjusted. While the growth outlook hasn’t fully recovered, there are signs of gradual improvement in the coming year.”
