Layoffs in the tech market: 2023 starts with cuts at Microsoft and PagSeguro

Layoffs in the tech market: 2023 starts with cuts at Microsoft and PagSeguro

This week, Microsoft and PagSeguro join the list of mass layoffs in 2023. The movement, which started last year, aims to cut costs, reduce the number of employees – mostly acquired during the growth boom in the pandemic – and resist the recession in the United States and Europe.

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The news about the company founded by Bill Gates was released by the British television channel Sky News, which stated that Microsoft plans to dismiss about 5% of its workforce – equivalent to 11 thousand employees. Other media outlets claim that the cuts would be concentrated in the engineering and recruiting divisions.

“From a broader perspective, another round of layoffs at Microsoft suggests that the environment (for the tech industry) is not improving and will likely continue to get worse,” wrote Morningstar analyst Dan Romanoff. In October, the company had already cut a thousand employees from different sectors, as revealed by the Axios website.

The PagSeguro group dismissed, this Monday (16), 7% of its staff, equivalent to 500 people. The information was released by the Brazil Journal, but the number of people fired could still grow. The layoffs took place two weeks after Ricardo Dutra took over as the company’s main executive. According to reports from laid-off employees, the cuts included professionals in systems development, software engineering, products and marketing.

Pagbank, PagSeguro’s digital bank, confirmed the layoffs to the InfoMoney portal, saying: “After years of continuous growth of our team, we are implementing a reduction of about 7% of the total number of professionals, from different areas, with the objective of improving the efficiency of the Company”.

Average layoffs in 2023 is 1,600 per day

A survey carried out by the Layoffs.fyi platform, which monitors mass layoffs of technology companies, reveals that 91 companies carried out 24,000 employee cuts this year alone. With just over 15 days a year, the average is 1,600 layoffs per day in 2023, including national and global companies.

It is worth noting that the number of employees impacted this year already exceeds twice the total for December and 15% for the entire year. Among the companies that contributed to this number are: Salesforce, Vimeo, Tesla, Twitter and Amazon — which alone laid off 18,000 employees.

Source: InfoMoney