by CareerXperts Teamon 16 August, 2023

The year 2022 was coming to a close and it seemed like the world was finally moving past the chaos of the pandemic. But as we were stepping into 2023, the air was filled with uncertainty and fear. Companies all around us were dropping like flies, laying off employees left, right, and center. The Great Layoffs of 2022/23 had arrived and nobody knew who was to blame.

Who was to blame for this catastrophe? Was it the pandemic that had caused so much disruption to our lives? Was it the greed of corporations that put profits over people? Or was it a combination of both?

It’s easy to point fingers at one specific entity, but the truth is that there are multiple factors at play here. Let’s examine some of the key players in this unfortunate situation:

  • The Pandemic

While the pandemic itself wasn’t the sole cause of the job losses, it did create a ripple effect that led to many of the layoffs we’re seeing today. The pandemic caused a slowdown in various industries, such as tourism, hospitality, and entertainment.

  • Technological Disruption

As more people started working remotely, companies began to realize that they could operate with a smaller workforce. In some cases, technology completely replaced certain jobs, making them obsolete.

  • The VC Game

Startups were popping up left and right, fueled by a seemingly endless stream of funding from investors. While some of these companies were able to build successful businesses, many others struggled to find a sustainable path to profitability. As the pandemic hit, many of these startups found themselves in a precarious position. With revenue streams drying up and investors pulling back, they were forced to make tough decisions, including laying off employees.

  • Company Mismanagement

Companies that were already struggling before the pandemic hit were particularly vulnerable. Some companies failed to adapt to changing market conditions and were unable to remain competitive. Others were saddled with too much debt and were unable to pay their bills, resulting in layoffs.

  • Opportunistic Layoffs

Opportunistic layoffs occur when a company uses a crisis, such as the pandemic, as an excuse to lay off employees. In some cases, companies may use the crisis as a way to trim their workforce and cut costs, even if their business isn’t necessarily impacted by the crisis.

  • Excessive Hiring:

Before the pandemic, many companies experienced significant growth and hired aggressively to keep up with demand. However, some may have hired more employees than they needed, creating an unsustainable cost structure. When the pandemic hit, and the revenue streams dried up, they were forced to lay off employees.

Our survey of the LinkedIn audience revealed that the majority believed the main reason behind the Great Layoffs of 2022/23 was “massive hiring/high payroll. Results below:

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Overall, the Great Layoffs of 2022/23 were a painful reminder of the importance of responsible business practices and the need for companies to prioritize sustainability, efficiency, and employee well-being.

Read Next: The Great Debate: Managers vs. Companies! What Really Makes Employees Leave?

Also, follow our other Newsletter: CareerTalks Daily where we assist individuals in comprehending their Values, Strengths, & Passions to help them find their True Career Paths.

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