• Latest
  • Trending
Recession, automation, over-Hiring make 2023 difficult for tech

Recession, automation, over-Hiring make 2023 difficult for tech

January 8, 2024
Edtech startup The Invigilator raises $11 million to scale its AI platform

Edtech startup The Invigilator raises $11 million to scale its AI platform

September 6, 2025
iXAfrica receives RMB financing to fast-track 20 MW expansion in Nairobi

iXAfrica receives RMB financing to fast-track 20 MW expansion in Nairobi

September 6, 2025
OpenAI challenges LinkedIn with new AI-powered hiring platform

OpenAI challenges LinkedIn with new AI-powered hiring platform

September 6, 2025
Tanzanian fintech NALA takes its services to Kenya

Tanzanian fintech NALA takes its services to Kenya

September 6, 2025
Call of Duty movie: Paramount, Activision strike deal for live-action adaptation

Call of Duty movie: Paramount, Activision strike deal for live-action adaptation

September 5, 2025
Meta Brings Back Facebook Poke with Emojis and Streaks

Meta Brings Back Facebook Poke with Emojis and Streaks

September 5, 2025
Know why they’re calling: Truecaller launches AI-powered insights

Know why they’re calling: Truecaller launches AI-powered insights

September 5, 2025
Visa harnesses local partnerships to launch Visa Pay in DR Congo

Visa harnesses local partnerships to launch Visa Pay in DR Congo

September 5, 2025
Betika denies recent reports of security breach

Betika denies recent reports of security breach

September 5, 2025
10 things you can actually buy with crypto in Africa

10 things you can actually buy with crypto in Africa

September 5, 2025
Your one-stop tech hub! Get the latest updates on AI, cybersecurity, fintech, and emerging technologies.
  • Tech News
    • Africa Tech
    • Global Tech
    • Tech with Pelumy
    • Tech Careers
    • General News
    • How To
    • Reviews
  • Cryptocurrency
  • Fintech
  • Startups
  • Ai
No Result
View All Result
  • Tech News
    • Africa Tech
    • Global Tech
    • Tech with Pelumy
    • Tech Careers
    • General News
    • How To
    • Reviews
  • Cryptocurrency
  • Fintech
  • Startups
  • Ai
No Result
View All Result
Techpression
No Result
View All Result
Home Tech News Africa Tech News

Recession, automation, over-Hiring make 2023 difficult for tech

Hauwa Ali by Hauwa Ali
January 8, 2024
140 10
0
Recession, automation, over-Hiring make 2023 difficult for tech
465
SHARES
Share on FacebookShare on TwitterWhatsAppTelegram

The triple danger of automation, overhiring, and recession made 2023 a difficult year for the tech sector.

In 2023, there were over 240,000 tech workers who lost their jobs, a 50% rise from 2022, according to data provided by Layoffs.fyi.

Early in the year, some of the largest tech companies—including Google, Amazon, Microsoft, and YahooMeta—announced significant staff reductions, citing a slowdown in revenue growth, increased expenses, and shifting market dynamics. This marked the beginning of the tech layoffs. Numerous businesses in a range of industries, including media, fintech, tourism, and e-commerce, followed suit as they battled to survive the intense competition and the slowdown brought on by the pandemic.

Read also: How to prevent tech startup failure in Nigeria in 2024

A quick comeback was followed by a fresh crisis

In the summer and autumn, there were fewer tech layoffs as the economy began to improve and vaccination rates rose. But throughout the winter, things got even worse as the Omicron variation unleashed fresh waves of infections and lockdowns, while interest rates and inflation surged to all-time highs. The tech sector, which had benefited greatly from the pandemic’s digital revolution, was suddenly confronted with a gloomy future as business investment, consumer spending, and innovation all declined.

RelatedPosts

How AI agents are levelling the global tech playing field

Nigeria, Estonia strengthen ties in tech and trade

Tunisian fintech startup EasyBank secures $370,000 in funding boost

Automation’s impact and overhiring

The quick development of automation and artificial intelligence, which replaced many human labour with computers and software, was another reason in the tech layoffs. Up to 45 million US jobs could be lost to automation by 2030, according to a McKinsey analysis, and the tech industry is among the most susceptible to this trend. To increase productivity and cut expenses, numerous tech companies—including IBM, SAP, and Salesforce—have made significant investments in the development and implementation of automation solutions, both internally and externally.

The over-hiring that took place in prior years—particularly during the pandemic, when the tech industry saw a spike in demand and growth—was a third factor that made the tech layoffs worse. In order to grow their teams and scale their operations, many tech companies—especially startups—hired quickly, frequently without a well-defined plan or a viable business plan. Many tech companies consequently found themselves with overworked and ineffective staffs, which they were forced to reduce as reality set in.

The role of technology in President Tinubu’s 2024 budget

The implications and the prognosis

The tech industry, tech companies, and tech workers have all been significantly impacted by the tech layoffs. Many tech workers have struggled to find new jobs in a competitive and saturated market, which has left them with financial difficulty, mental stress, and career uncertainty. As they attempted to strike a balance between their short-term survival and long-term growth, several tech companies have experienced reputational harm, challenges with employee morale, and dissatisfied customers. Additionally, as the tech ecosystem attempted to adapt to the difficult and changing climate, it lost variety, talent, and inventiveness.

But the tech sector isn’t going away. Many tech companies have persisted in innovating, launching new goods and services, and seizing new possibilities in spite of the tech layoffs. Along with their capacity to learn new skills, explore new areas, and launch new businesses, many tech workers have also demonstrated resilience, adaptability, and ingenuity. Additionally, the IT community has demonstrated cooperation, solidarity, and support by providing networks, resources, and guidance to one another.

Although 2023 was difficult for the tech sector, it was also a year of learning. The tech sector has discovered how to welcome automation as a partner rather than a threat and has become more flexible, efficient, and customer-focused. The IT workforce has gained greater adaptability, versatility, and entrepreneurialism as well as a respect for their abilities, interests, and objectives. Additionally, the tech industry has learnt to promote an innovative, collaborative, and socially conscious culture by becoming more inclusive, varied, and linked.

For the tech sector, 2024 will be a fresh and, hopefully, better year.

Tags: automationover-HiringRecessionTech
Hauwa Ali

Hauwa Ali

No Result
View All Result

Quick Links

  • Tech News
  • Cryptocurrency
  • Fintech
  • Startups
  • Business

Follow Us:

  • facebook
  • instagram
  • Twitter(X)
  • Linkedin
  • YouTube
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2025 Techpression.com -Techpression Media Limited

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

We are using cookies to give you the best experience on our website.

You can find out more about which cookies we are using or switch them off in .

No Result
View All Result
  • Home
  • Tech News
    • Africa Tech
    • Global Tech
    • Tech with Pelumy
    • Tech Careers
    • Reviews
    • How To
    • General News
  • Cryptocurrency
  • Business
  • Fintech
  • Startups
  • Featured
  • Ai
  • Tech TV

© 2025 Techpression.com -Techpression Media Limited

techpression.com
Powered by  GDPR Cookie Compliance
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

3rd Party Cookies

This website uses Google Analytics to collect anonymous information such as the number of visitors to the site, and the most popular pages.

Keeping this cookie enabled helps us to improve our website.