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Tech company layoff a major blow to PG industry in B’luru
The demand for PGs (paying guests) has suddenly fallen in the fast-growing metropolis. Real estate activities such as house sales have also suffered
Bengaluru: The demand for PGs (paying guests) has suddenly fallen in the fast-growing metropolis. Real estate activities such as house sales have also suffered. IT-BT companies in the city have cut jobs in the name of losses. Thousands of employees are in distress due to layoffs. They are leaving Bengaluru, leaving their PGs, their rented houses, and even their dreams of a future home, and are leaving Bengaluru in limbo, which has put a damper on the PG industry and real estate in Bengaluru.
The tech jobs crisis in Bengaluru is severe. As a result, the real estate market is collapsing. Rental houses are becoming vacant. Property prices are also falling. There have been reports that e-commerce giant Amazon is laying off about 14,000 employees. This has affected the PG and rented houses in Bengaluru. PGs are available at affordable rates for junior IT employees. But now the demand has decreased. Due to this, the owners are facing financial difficulties.
The heat of tech job cuts has hit the real estate market of Bengaluru. Earlier in November, Amazon had cut 18,000 jobs. Now, at the beginning of the year, Amazon has decided to cut 14,000 jobs. This decision has been taken to cut costs. According to the report, changes are already being seen in the rental market of Bengaluru. PGs that were once full of IT employees are now empty. Rental houses are falling vacant in tech hubs like the Outer Ring Road (ORR). Due to this, owners and investors are suffering.
This job cut by Amazon will mainly affect the engineering, marketing and product management departments. In October 2024, CEO Andy Jassy had said that the company would reduce the number of managers. This change is estimated to save Amazon about $3 billion annually. Excluding Amazon, 87 tech companies have made 23,054 layoffs so far in 2024. Also, in the 2024 fiscal year, 549 tech companies have sacked a total of 1,52,472 employees. In 2023, the highest number of layoffs was 1,193 tech companies, which laid off 2,64,220 employees.
Tech companies have been cutting jobs for the past two to three years to cut costs. Also, the need for employees has decreased due to the use of AI technology. This has led many companies to cut jobs. As job cuts increase, the demand for affordable housing is likely to decrease.
