HCMC & Hanoi cutting IT staff at higher rates than elsewhere
Southern city is recording the highest decline in IT workforce, according to a VietnamWorks report.
Ho Chi Minh City and Hanoi are the two localities seeing the largest cuts in information technology (IT) staff, according to the recently-released Report on HR Situation & Recruitment Outlook in the IT Industry in 2023 from VietnamWorks inTECH.
Based on a survey of nearly 1,500 people, the report points out that Ho Chi Minh City has recorded the highest rate of IT workforce reduction, with 22.2 per cent, while Hanoi recorded a lower rate. However, employers in the capital have chosen to cut salaries, bonuses, and other benefits, (14.7 per cent of respondents).
Companies with fewer than 100 employees posted a high rate of layoffs. Those with employee numbers from 1,000 to 3,000 have the most stable staffing ratio (76.5 per cent of respondents), while companies with over 3,000 employees have a relatively high rate of reduction in salaries, bonuses, or other benefits (16.7 per cent of respondents).
In terms of working experience, IT workers with less experience are most affected by staff cuts.
“During a stable economic period, the recruitment needs of IT businesses explode to serve growth, so IT employees are normally head-hunted by businesses,” said Director of Product & Engineering at the Navigos Group Cai Dang Son.
“However, at the present time, with the labor market affected by economic factors, businesses are narrowing their recruitment needs and budgets and at the same time setting higher requirements, seeking personnel with many skills and the ability to take on more responsibility.”
