Tech Layoffs 2023: Is this the Reason Behind CEO Salary Cuts?

Tech layoffs 2023 that gained attention due to Elon Musk's antics at Twitter have evolved into a massacre, with all major corporations in the industry, except for Apple, downsizing its personnel. As CEOs defend job losses as cost-cutting measures, some have taken compensation cuts, including Google's Sundar Pichai and Goldman Sachs' David Solomon. But, although lowering their pay helps CEOs appear generous as others lose their jobs, are the executives genuinely suffering?

Is it a significant sacrifice?

Zoom recently joined the bandwagon of tech layoffs 2023 by firing 1,300 employees, while its founder and CEO reduced his compensation by 98%. This may appear to be a sacrifice, yet senior executives get most of their income from stock ownership.

For clearer understanding

For example, while Mukesh Ambani has been skipping his Rs 15 crore yearly pay for the past two years, his family's ownership in Reliance Industries will reach a 12-year high of over 50% in 2020. Mukesh Ambani's net worth has increased by more than Rs 82,000 crore in the first five months of 2022 due to RIL's booming stocks.

What are tech CEOs up to?

Returning to tech CEOs, Zoom shares rose 10% after the company announced layoffs and a compensation cut for CEO Eric Yuan. This implies that Yuan, who owns 22% of Zoom, might gain more money than the salary he renounces. Similarly, stocks of all big technology corporations have risen following tech layoffs 2023, implying a decreased financial burden. Google gained 15% after laying off 12,000 employees, while Amazon achieved 19% on the stock market, with promises of increased efficiency through reduced staff spending. After Mark Zuckerberg fired off people and initiated a share buyback programme, Meta recovered by a whopping 50%.

Are workers the only ones suffering due to tech layoffs 2023?

This demonstrates that, despite all of the emotional speeches in which CEOs accept responsibility and are praised for taking salary cuts, they aren't losing anything. At the same time, actual people are being dismissed unexpectedly, their families are struggling, while their colleagues in the industry remain concerned about layoffs.