Tech Companies creating fewer jobs – Machines take over
The software industry will produce fewer jobs this year on account of the introduction of machines in entry-level coding. Tech companies creating fewer jobs highlights a shift in the industry. Early studies estimate that the number of jobs may fall down to 2.50 lakhs from previous year’s 3 lakh.
Industry lobbody Nasscom has predicted a 7-9% growth in the industry itself. But the reduction in job creation indicates how rapidly the industry is morphing. The number of job offers at engineering college campuses will remain the same but laterals – with 2-8 years of experience, might see a reduction. This, in association with higher job retention in top-tier companies, is leading to a flat job market.
The campus recruitment season is also beginning on a cautious note. Traditional large tech companies are also lowering their recruitment needs. Moreover, several companies have let go of many of their employees. This coupled with tech companies creating fewer jobs has painted a bleak picture in the employment sector.
Nearly 5000 jobs were lost at Aircel and the company had to file for bankruptcy, After the acquisition on Telenor Bharti Airtel 700 employees lost their jobs. Other big-name companies like Huawei, Amazon and Hike have lost a considerable portion of their workforce.
Lava had to let go of 4000 out of its 11000 employees. Because of an ongoing restructuring plan, HP has informed that it would lay off anywhere between 4500 -5000 employees the year 2019.
It has been estimated that traditional MNCs in the service sector will see a 15% drop in hiring as compared to the previous year. Although product companies and startups might see a rise, that jump will not be enough to offset the drop in recruitment the services sector.
Is the IT sector truly stable with tech companies creating fewer jobs? What do you think?
