Tech Industry Layoffs 2024
According to Layoffs. FYI, an online tracker monitoring job losses in the tech sector, 1,186 tech companies let go of approximately 262,682 employees in 2023, compared to 164,969 layoffs in 2022. In 2024, 168 tech companies have already laid off 42,324 employees. The following is a compilation of notable tech layoffs in 2024.
Introduction:
In the dynamic realm of technology, the year 2024 was anticipated to signal a rebound from two years of extensive layoffs in the IT industry. Despite global signs of improvement in IT spending, the sector continues to grapple with job cuts. This article presents an updated timeline of significant tech layoffs and delves into the underlying reasons driving the ongoing upheaval in Big Tech.
Background:
In previous years, major tech giants such as Amazon, Cisco, Meta (Facebook’s parent company), Microsoft, Google, IBM, SAP, and Salesforce, alongside numerous smaller entities, announced substantial job cuts. The root cause can be traced back to the hiring surge initiated by Big Tech during the pandemic, fueled by heightened demand for tech solutions supporting remote work and e-commerce. Now, faced with revenue challenges, these companies are forced to make tough decisions.
Cisco (Feb. 14):
Cisco opted to reduce its workforce by 5%, amounting to 4,200 employees out of 84,900. The move aims to redirect the company toward more profitable areas such as AI and security, given the challenges faced by telecommunications equipment sales due to telco equipment rollout delays.
DocuSign (Feb. 6):
Digital workflow company DocuSign announced a 6% reduction in its workforce, affecting 440 out of 7,336 staff. The layoffs come amid reports of unsuccessful attempts to sell the company to investment firms.
Microsoft (Jan. 25):
Microsoft’s Gaming division witnessed an 8% reduction, with about 1,900 job cuts, primarily impacting the newly acquired Activision Blizzard subsidiary. This move follows Microsoft’s $69 billion acquisition of Activision Blizzard in October 2023.
SAP (Jan. 24):
SAP, the German enterprise software giant, revealed a $2.2 billion restructuring program affecting 8,000 jobs. The shift in company priorities towards generative artificial intelligence (genAI) prompted this move.
eBay (Jan. 23):
Online retailer eBay announced a cut of nearly 10% of its workforce, equating to 1,000 jobs. The decision was driven by expenses outpacing business growth, with all US employees instructed to work from home during the layoffs conducted via Zoom.
Google (Jan. 17):
Google decided to replace part of its ad sales team with AI, resulting in the loss of several hundred staff from its large customer department. The company has been gradually shedding jobs since January 2023, when its parent company Alphabet downsized its entire workforce by 6%.
Alphabet (Jan. 11):
Alphabet laid off hundreds of its engineering, hardware, and digital assistant teams. The restructuring involved consolidating various teams responsible for devices like Nest, Pixel, and Fitbit under a single team.
Conclusion:
Despite signs of recovery, the tech industry grapples with the aftermath of pandemic-induced hiring surges. Major players are strategically restructuring to align with evolving business priorities, resulting in significant job cuts. As we navigate the dynamic landscape of 2024, monitoring these developments remains crucial, recognizing the broader implications for both the tech sector and the workforce at large.
Blog by Khushi
Related blog – https://careertrackhub.com/will-layoffs-continue-in-2024-it-sector-layoffs-insights-and-analysis/
more tech updates – https://careertrackhub.com/category/technews2024/
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