The prominent technology conglomerates comprising the ‘FAAMNG’ group in India, recognized for setting benchmarks in the tech industry, are presently undergoing a substantial deceleration in their hiring activities due to prevailing macroeconomic challenges and global workforce downsizing, according to an ET report.
Noteworthy entities such as Facebook (Meta Platforms), Amazon, Apple, Microsoft, Netflix, and Google (Alphabet) collectively experienced a remarkable 90% reduction in active job postings within India throughout 2023 when compared to the previous year. This analysis is based on data compiled by the specialized staffing firm Xpheno, revealing that the cohort’s current active hiring numbers have plummeted by over 98%, dwindling to a mere 200 positions, a significant deviation from their customary hiring volumes.
This hiring slowdown is concurrent with the broader challenges faced by the tech industry, grappling with the impact of a global economic downturn. Factors contributing to this deceleration include uncertainties surrounding pipeline conversions, downsizing of projects, sluggish revenue growth, and a cautious stance adopted by clients.
Prasadh MS, the Head of Workforce Research at Xpheno, underscores that the sustained low to no hiring activity from these tech giants will undoubtedly influence talent movements, particularly in the experienced lateral layers. Furthermore, this conservative approach is likely to serve as a cautionary signal for smaller companies in the industry to exercise prudence in their hiring strategies.
Data as of December of the preceding year indicates that the active demand for roles within the major tech cohort had already seen a substantial 78% decline compared to July 2022, marking an 18-month low for the group.
Industry experts anticipate that this careful hiring strategy will persist for the next two quarters, with a deliberate emphasis on improving employee utilization amid weakened demand. Globally, Big Tech companies have collectively implemented significant workforce reductions, reflecting the challenging landscape that has emerged.
While earlier in the year, the ongoing slowdown prompted senior executives within the tech industry to explore new job opportunities, experts suggest that the situation has now stabilized, though an air of caution prevails as the industry navigates through uncertain economic times.
