Layoff – An Opportunity to Grow

By Piyush Lakhote, Sr. Manager – Human Resources

Mass layoffs are distressing and were a matter of concern for the talent market in 2022. From the giants in the industry to the small setups, layoffs are happening all over. According to Forbes, the Pandemic and ever-changing geopolitical scenarios are the primary reason leading to job cuts; however, the reasons could also vary depending on the organization’s stage and health.
On financial health, companies have experienced slower growth rates this fiscal year. According to Moneycontrol, Alphabet (the Parent company of Google) showed revenue growth of 13% in Q2 2022 from 62% a year earlier, which is a considerable decline. As per the report from BBC in July, Netflix reportedly lost subscribers for the 2nd quarter in a row. Wion news (Dated 4 Oct 22) states that amid fears of global recession, leading IT and tech giants have revoked offer letters given to students, said reports. The joining of the previously offered candidates has been delayed.

With the changes happening, major economies like US and UK are looking at a recession. India is less affected by the global recession and is likely to be one of the fastest-growing economies by FY26.

Why is this happening?

Reinventing Workforce Strategies:
In today’s rapidly digitizing world, to keep up with anticipated demand, companies were under pressure to hire more resources which led to an influx of new hires. However, as we enter a more uncertain economic climate, many companies are starting to restructure their workforce leading to job cuts. This may mean fewer job opportunities in the upcoming months. They had to tighten the budget and align themselves with the strategies for their workforces of the future

Great Resignation:
The Wipro chairman, Rishad Premji, mentioned in an Interview, ”People came for cost, stayed for quality, and now India is a true talent destination.” With the growth limitations during the pandemic, many used this time to move ahead and look for a new position. As per the indeed hiring tracker for Q4, the salary was the second most crucial factor per 85% of the job seekers, with nearly 53% considering it to be the most important. With the abundance of market positions, talents grabbed it as an opportunity and moved on with good hikes

Layoffs vs a talent gap:
This is an odd conflict, around 75% of businesses in India need help finding the talent they require, which is a 16-year high. Hiring should get more accessible, given the skills availability, even with the market’s current layoffs. However, new positions are being focused on hiring quality over quantity. This is important with a talent shortage of 84% across the IT and Technology segment. Cross-training and reskilling might push for results

Emerging locations:
Due to cost constraints and focus on growth, we have also seen the emergence of a few emerging locations. Locations like Ahmedabad, Vadodara, Jaipur, and Coimbatore have seen a rise in opportunities. Start-ups in these areas have been driving hiring in these cities. With government’s ‘Make in India’ campaign, we have seen many start-ups emerging in areas of Aerospace, engineering, and others

An Opportunity to Grow: what future holds?

As rightly said by Bryant McGill – whatever makes us uncomfortable is a significant opportunity to grow.

Of course, a slowing global economy poses risks. The International Monetary Fund (IMF) warns that a third of the world economy may face a recession in 2023. With a large global economy exposure, India cannot be insulated. The export-import (Exim) data already indicate trade moderation. Still, a resilient domestic economy, led by manufacturing and demand from urban centers, should keep growth hopes alive for everyone.

After the challenging past few months, the future holds wonderful things for the right talent. The opportunity to differentiate is more available in this environment. So, this presents an opportunity for employees to reskill and relaunch. Focus on Digital Transformation, AI/ML, Blockchain, and IoT will continue to be there, and newer enterprise platforms like, ServiceNow, and Freshworks will find greater adoption.

Overall hiring outlook in India is improving again as per the recent trends. As per the report from Business Standard while optimizing was also a reason to see the down in hiring, but it will surely improve.

Employee Speaks

With all these adjustments and potential outcomes, this also is a chance to develop, and the HR team needs to take charge to build a great workplace culture and foster connections among the staff. The Teams connect sessions are vital because we have seen teams flourish and accomplish amazing things when they work together. At Hoonartek, our employees assist us across geographies to talk to new and potential joiners.
Start-ups have been playing a big part in hiring talent. With the high back-to-office costs, many positions are being positioned as Remote or Hybrid jobs. Niche skills are being employed currently and will increase in the future. Leaders in the companies have seen focused on technologies enabling transformation.

In 2023 we can see much growth in hiring, and the focus would be attracting the best talent from the market. Let’s be ready for growth.
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