The news: Tech companies have laid off more than 171,800 employees so far this year, surpassing 2022’s total of 161,411 tech layoffs, per Layoffs.fyi. The job cuts are now hitting IT services and career portals.
IT services feeling the sting of austerity: Accenture is the latest technology provider to announce layoffs. It plans to cut 19,000 jobs, or 2.5% of its workforce, in efforts to adjust to a weakened economy, per Reuters.
- Accenture overhired and increased its workforce by 38,000 in 2022 to serve the surging demand in its services and solutions.
- The company said that it’s scaling back jobs in non-billable corporate functions and that layoffs will be undertaken in the next 18 months.
- “The data indicates a very difficult environment ahead for consulting firms," said Erik Bradley, Accenture’s chief engagement strategist.
- Competitor McKinsey & Company eliminated 2,000 jobs in February, the biggest round of layoffs for that company.
The slowing job economy squeezes HR services: Human resources search engine Indeed and online job resource Glassdoor shed 2,200 and 140 jobs, respectively, reflecting the reality that HR, sales, and advertising often bear the brunt of layoffs.
- Indeed’s cuts will be company-wide and affect “nearly every team, function, level, and region,” per CEO Chris Hyams.
-
LinkedIn laid off recruiting staff amid Microsoft’s layoff announcements last month.
Our take: Businesses dialing back budgets for consultants and IT services will continue to result in layoffs for companies like Accenture and McKinsey in the short term. These companies could innovate products and services or reduce pricing to remain competitive.
Similarly, a drop in job listings and evaporating advertising budgets are taking their toll on job sites like Indeed, LinkedIn, and Glassdoor, which will continue to be a telltale sign of current job and hiring trends.
For businesses focused on HR and hiring, economic fallout will likely continue until Big Tech starts hiring again.
This article originally appeared in Insider Intelligence's Connectivity & Tech Briefing—a daily recap of top stories reshaping the technology industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.