Tech layoffs: How badly will the office market be hit?
global retrenchment worldwide by enormous numbers of tech firms has sent a chill throughout every sectors when the news leaked. layoff of 11,000 employee globally by the parent company of Facebook, Meta, streamlining its worldwide manpower by 20,000 Amazon. Elon Mask shrinking the company’s manpower by sixty-six percent CEO of Twitter, Microsoft, Stripe and Salesforce have laid off 1,000 headcount, respectively, while Cisco reduced 4,100 headcount internationally. by 2K25, Hewlett-Packard is deploying off 4,000 to 6,000 employees. Google’s parent company, Alphabet, is looking to marginally lay off 10,000 “under-performing employee” via a new key performance indicator system (KPI) . That’s 5.3% of its 186,779 employee globally. as of Dec 6, 2k22, According to Layoffs.fyi, a layoffs tracker, 144,554 employees globally have been let go from 916 tech companies this year. the number of Singapore resident workers laid off from the tech sector climbed up to 1,270, From July to mid-November, Manpower Minister Tan See Leng told Parliament on Nov 28. This is the worst post pandemic recovery announcement. Eight in 10 were in non-tech-related roles, such as sales, marketing and corporate functions. “The tech sector is going through a tough sentiment currently,” says Marcus Loo, CEO of Savills Singapore. “Tech start-ups companies may quit or subletting their space as the cost of borrowing has increased tremendously. Investors are also more cautious about how they utilize their capitals.” He anticipates more shadow space to appear in times to come soon. Amazon, On the opposite hand, has inked a tenancy agreement for a rental of 370,000 sq ft or 11 floors at IOI Central Boulevard Towers, which is targeted to open in 3Q2K23. Amazon already occupies 100,000 sq ft of prime office space in Asia Square, another 45,000 sq ft in One George Street and 80,000 sq ft in Capital Square, according to Dunkerley. The tech giant may solidifies its real estate footprint at IOI Central Boulevard Towers when it moves in. Meta, Facebook’s parent company, Beijing-based ByteDance, will be renting substantial office space at IOI Central Boulevard Towers, too, says Dunkerley. the parent company of TikTok, is taking up a further 80,000 sq ft in Capital Tower, space vacated by JP Morgan. ByteDance already occupies substantial office space in One Raffles Quay and Guoco Tower, Dunkerley points out. Sea is looking to novate its tenancy to respective tenant.. The firm retrenched more than 7,000 employees, or around 10% of its workforce, over the last 0.5 year. American video-on-demand streaming service, Netflix, According to sources, has given up one of its two floors at Marina One West Tower. The space offered for sublease is said to be about 30,000 sq ft.
