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Tech Layoffs: The lower demand for PG is affecting landlords and operators and they face financial strain amid falling occupancy rates and diminishing property values, say reports.
In the current financial year so far, 87 tech companies have laid of a total of 23,054 employees.
Even as the tech job crisis takes a hold, Bengaluru’s real estate market seems to be taking a major hit with falling occupancy rates and declining property values. In the latest layoffs, e-commerce giant Amazon is reportedly laying off around 14,000 employees.
According to a Financial Express report citing Inshorts, the tech layoffs have an immediate effect on the PG demand and rental market in Bengaluru. PG is the most affordable option for junior IT employees. The lower demand for PG is affecting landlords and operators and they face financial strain amid falling occupancy rates and diminishing property values.
Amazon is set to cut 14,000 jobs in order to as part of its major restructuring plan to save costs, according to reports. This comes after the e-commerce giant had cut 18,000 jobs in November.
“The impact on Bengaluru’s rental market is already evident. PG facilities, once bustling with junior IT workers, are seeing dwindling demand. Many landlords and property investors, especially in tech hubs like the Outer Ring Road (ORR), now face declining occupancy rates and falling property values,” according a report by newskarnataka.com.
The Amazon layoffs will mainly hit engineering, marketing, and product management job roles.
Earlier in the month of October 2024, CEO Andy Jassy revealed that the company will reduce its managerial staff to increase the ratio of individual contributors to managers by 15% by the end of Q1 2025. The restructuring is designed to help Amazon save up to $3 billion annually, as noted by an analysis from Morgan Stanley.
Layoffs In 2024, So Far This Year
In the current year so far, 87 tech companies have laid of a total of 23,054 employees, according to layoffs.fyi. It excludes Amazon’s figures.
In 2024, 549 tech companies had sacked a total of 152,472 employees. The year 2023 witnessed the highest layoffs with 2,64,220 employees being laid off by 1,193 tech companies.
The tech companies have been resorting to layoffs in the past two-three years in order to save costs amid a shift to AI automation.
With the growing wave of layoffs, the demand for affordable housing is likely to plummet, leaving investors with vacant properties and declining asset values.
Slamming the Amazon layoffs, Complete Circle CIO Gurmeet Chadha said questioned the use of titles like “People Experience Head” and “Chief People Officer” while referring to employees as “family,” calling it all a drama.
“Amazon is laying off 10000 more people after laying off 18k in November. They call their HR heads as People Experience Head, Chief People Officer and fancy names… employees r called families. Sab drama!!” he said in a post on X.
