More than 500 layoffs in Serbia’s IT sector in the same month – Is artificial intelligence the only reason for mass layoffs or just a good excuse?

More than 500 workers in the IT sector in Serbia lost their jobs in March alone. Although the development of artificial intelligence is often cited as one of the main reasons, experts warn that the causes of mass layoffs are much more complex and include both the state’s economic policy and global changes in the market.

The IT industry, although considered one of the more attractive ones, primarily due to high salaries, is often subject to mass layoffs.

This trend or phase has been going on globally for several years, and the latest cases in Serbia have fueled concerns in this industry.

Namely, in March alone, the public learned that over 500 workers from this industry were losing their jobs, as three companies closed down their operations in Serbia.

The latest case is the American software company Zendesk, which closed its office and left 60 workers without jobs, and before it, the Italian IT company Lottomatica did the same. This company laid off 348 employees in its Belgrade office in the middle of the month. The American gaming company Playstudios also closed its office in Belgrade, and according to estimates, more than 100 people were left without jobs.

Artificial intelligence is often cited as the main reason for layoffs, which reduces the need for personnel, while on the other hand bringing greater productivity. However, it remains questionable whether artificial intelligence has advanced so much that it can be the only reason for such mass layoffs.

Srpska IT asocijacija

IT Association

Zendesk

Lottomatica

Marko Vučetić

IT industry

layoffs in IT industry