The big tech pack of ‘FAAMNG’ companies (
(Meta Platforms), Amazon,
Apple
, Microsoft,
Netflix
and
) in India are reportedly in a near
hiring
pause amid the macroeconomic headwinds and global job cuts.
According to an exclusive report in Economic Times, these companies registered a 90% drop in active job postings in India in 2023 compared with the previous year. The story cites data put together for ET by specialist staffing firm Xpheno. These companies are reported to be their lowest action point, with current active hiring numbers down by more than 98% to 200 compared with its typical active hiring volume in India.
The hiring pause comes at a time when the tech industry is grappling with the global economic slowdown, with project ramp-downs and sluggish revenue growth.
“The low to no hiring action maintained by the cohort over the year will continue to impact tech talent movements, especially in the experienced lateral layers,” said Prasadh MS, head of workforce research at Xpheno. It will be a signal for smaller companies to stay cautious, he told ET.
“Maintaining the status quo requires replacement hiring action, with no significant net talent additions recorded,” he added.
Even as of December last year, the active demand from the big tech cohort is said to have already dropped by 78% compared with July 2022, reflecting a near 18-month low for the cohort, shows the data.
"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.
The Big Tech companies -- Facebook, Amazon, Apple, Microsoft, Netflix and Google -- currently employs a little less than 150,000 people in their core operations and captives in India.
Rishi Jhunjhunwala, senior vice-president covering IT at IIFL Securities, said, "Hiring should slowly start picking up in 2024 as some of the over capacity got rationalised in 2023. While the growth outlook is yet to improve, there is hope that it should start improving slowly."
Though the sentiments have turned positive for the sector, no major changes will happen with the cautious investment strategy until at least March, when the first round of rate cuts is expected, the person said. Also, inflated salaries and innumerable offers are a thing of the past.
English (US) ·