Tech Layoff Trend in 2024: Over 60,000 Job Cuts Across Major Companies, Set to Get Worsened Later this Year

Tech Layoffs Rock 2024 Job Market

Since the start of 2024, the tech industry has been hit by a wave of layoffs, resulting in over 60,000 job cuts across 254 companies. Major industry players such as Tesla, Amazon, Google, TikTok, Snap, and Microsoft have all downsized their workforces significantly. Even smaller startups have not been immune to these layoffs, with some being forced to shut down completely.

The reported job cuts have occurred throughout the year, with January seeing 19,350 cuts, February with 15,589, March with 7,403, April with 22,153, May with 9,882, June with 10,083, and July with 8,851. Some notable recent layoffs include Infineon cutting 1,400 jobs globally, Jam City letting go of 85 employees, and Dell planning layoffs as it shifts its focus to AI products.

Intel alone laid off 15,000 employees, citing underperformance and the potential of AI as reasons. Other companies such as Rad Power Bikes, Match Group, Bungie, and Pocket FM have also implemented layoffs. The trend extends to significant cuts at companies like Salesforce, Intuit, UiPath, and UKG.

This spate of layoffs reflects the broader industry shift towards AI , automation and outsourcing to low cost countries like Ireland, Poland and India, impacting jobs that were previously thought to be secure. It underscores the human cost of these technological advancements and presents potential implications for future innovation. One Google employee told us: "The fat years for tech workers in the US is done, without doubt!".

What makes it worse, companies are lining up to initiate even more rounds of layoffs later this year:

1. Dell plans to lay off around 12,500 employees as part of a reorganization focusing on AI products and services. This follows significant cuts in the previous year.

2. Intel is set to cut 15% of its workforce, which amounts to approximately 19,000 jobs, due to underperformance and a strategic shift towards AI.

3. Snap is reducing its headcount by 10%, affecting about 540 workers, in an effort to streamline operations and promote in-person collaboration.

4. Cisco announced layoffs of around 4,200 employees, which is about 5% of its workforce, as part of a restructuring effort.

5. Amazon and its subsidiary Twitch are laying off hundreds of employees. Amazon is cutting several hundred jobs at Prime Video and MGM Studios, while Twitch is laying off 35% of its workforce, totaling over 500 people.

6. Meta continues its layoffs into 2024, with significant cuts across various departments including Instagram and technical program management.

7. Google has implemented layoffs in its Assistant, hardware, and ads business units, with more cuts expected throughout the year.

8. Rivian plans additional layoffs, cutting about 1% of its workforce in its second round of reductions this year.

9. Turnitin aims to reduce its headcount by 20%, leveraging advanced AI technology to replace human roles.

10. Expedia and Duolingo have also announced layoffs, with Expedia cutting roles in its Austin office and Duolingo reducing its contractor workforce by 10%.

Key Takeaways

• Over 60,000 job cuts across 254 companies in the tech industry in 2024.
• Major players including Tesla, Amazon, and Google have significantly reduced their workforces.
• Smaller startups have also faced substantial cuts, with some being forced to shut down entirely.
• The impact of AI and automation has led to job losses in previously stable roles, highlighting the human toll of technological progress.

Analysis

The surge in tech industry layoffs driven by the shift towards AI and automation has global implications. Financial markets tied to these companies have experienced volatility, while the layoffs have resulted in immediate economic strain for those affected as well as reduced consumer spending. In the long run, this trend could expedite innovation but also risks widening the tech talent gap. Strong tech sectors, such as those in the US and China, are likely to feel economic repercussions, influencing global markets and prompting policy shifts towards tech regulation and workforce retraining programs.

Did You Know?

• AI and Automation:
  • AI involves the simulation of human intelligence in machines, allowing them to think and learn like humans.
  • Automation utilizes technology to perform tasks without human intervention, often enhancing efficiency and accuracy through AI in repetitive or complex tasks.
  • The integration of AI and automation in industries is resulting in significant job displacement due to the technologies' ability to perform tasks more efficiently and cost-effectively.
• Tech Layoffs:
  • Refers to the reduction in workforce by technology companies, often due to economic downturns or shifts in business focus towards more technologically advanced areas like AI.
  • The 2024 trend indicates widespread job reductions across various tech sectors, impacting both large corporations and smaller startups.
  • These layoffs can have profound social and economic impacts, including increased unemployment rates and potential changes in job market structure.
• Startups Shutting Down:
  • Involves new businesses ceasing operations due to financial difficulties or competitive pressures from larger, more established companies.
  • In the context of tech layoffs, some startups may be unable to sustain operations after significant workforce reductions, leading to complete closure.
  • The shutdown of startups can have broader implications for innovation and economic growth, as these companies often drive new ideas and market developments.