A few months back, great resignation has been the top concern for the IT and Tech Industry but the scenario is changed completely, and now layoff is a new buzzword.
The number of layoffs due to failed background checks and moonlighting has increased over the last few months.
Recently, Accenture in India fired several employees over fake documents and experience letters to get jobs with the organization.
Accenture in India said in a statement, “We have discovered an effort to use documentation and experience letters from fraudulent companies to obtain offers of employment from Accenture in India.”
After Accenture, Cognizant India had reported 6 per cent involuntary attrition in the September ending quarter of FY22, which also includes the sacking of employees due to failed background checks.
The involuntary attrition rate, however, is in a combination with multiple factors and not solely dependent on background checks, the company said in a statement.
On the ground of moonlighting, in Septemeber month this year, Wipro fired 300 employees. The IT giant could have sacked these employees after finding out about their second job through UAN numbers.
Infosys has also fired a few employees who found in moonlighting, though the number is not reported.
According to reports Amazon plans to cut 10,000 corporate and technology jobs worldwide. The layoffs are started now in its corporate and technology sectors.
In early November, Meta announced mass layoffs for 11,000 employees, or 13% of its workforce.
Most recently, Twitter laid off thousands of its employees across the globe. The company also laid off over 80 percent of its employees in India.
IT majors like Intel Corporation, Snap, Microsoft, Twitter, TikTok, and Google have either laid off employees or frozen new hiring.
Impact of Looming Recession
While the current employment market in India is still strong but experts believe that layoffs announced by the US and Europe companies will start showing their impact in India as well in the next couple of months and the scenario will be more clear in mid of 2023.
IT companies are already seeing margin pressure due to inflation and impending recession in markets like the US and Europe, the biggest markets for the sector.
Companies in India are cautious and started working on the reduction of costs, especially in the IT and Tech Industries.
