The IT industry is considered one of the most dynamic and fastest growing industries in the world, with a high demand for qualified professionals. However, although the IT industry is generally known for its high demand for candidates, layoffs are an integral part of business, especially in today’s business environment.
– Layoffs occur for a variety of reasons, from changes in business strategies to economic conditions, but some of the most common reasons for layoffs in the IT industry include changes in technological requirements, business consolidation, but we must also mention the impact of conflicts between world IT centers such as Russia and Ukraine – says Marko Vučetić, PR manager of HelloWorld.rs, in the author’s text.
According to data from the HelloWorld.rs website, the slowdown in the employment market occurred in the last quarter of 2022, which in itself started off phenomenally. Already in January, there were 50% more ads compared to the same period in 2021.
Despite the great numbers throughout the year, the last quarter compared to the third quarter showed a reduction of as much as 17 percent in the number of ads.
The situation continued at the beginning of 2023, when in January there was an 18% decrease in the number of advertisements compared to the same month of the previous year, and the activity of candidates was increasing.
What we can currently observe in our market is a small number of layoffs, primarily in non-technical positions, and we can safely assume that the number of layoffs is negligible.
What is a fact is that we have a lot of developers who are currently without projects and this can potentially be a big problem if the market does not recover in the coming period.
At the world level, the situation was, I must admit, chaotic, the mere thought that there were over 100,000 layoffs in January was enough to make us all wary and even scared.
In terms of the number of layoffs, global giants dominated, such as Amazon, which laid off over 18,000 people, followed by Google and Microsoft with 12,000 and 10,000 people, respectively.
For the sake of comparison, in April 2022 there were only 5,825 dismissals worldwide, which tells us about the seriousness of the situation.
The good thing is that at the world level this trend is slowly declining. There were 48,000 layoffs in February, and March allows us to be optimistic about projecting future plans because the number of layoffs fell to 28,000.
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