Tech Layoffs 2024: Major Firms Announce Job Cuts

Hopes that 2024 would see a slowdown in tech layoffs have been dashed. According to data from Layoffs.fyi, over 124,000 employees have been let go by tech companies as of August 20, 2024, pushing the total number of layoffs since 2022 to 428,449. This wave of layoffs spans from small startups to major tech giants and is driven by several factors: cost-cutting measures to fund investments in AI, a global economic downturn, over hiring during the pandemic, and lagging behind competitors due to delayed AI investments.

Here’s a look at the major ones:

Microsoft, one of the largest tech firms, has undergone multiple rounds of layoffs this year. In January, the company cut 2,000 jobs in its gaming division shortly after its acquisition of Activision Blizzard. Another round followed in June, affecting around 1,000 employees in its cloud business, Azure, and the HoloLens mixed reality segment.

In July, Microsoft announced a third round of layoffs targeting roles in product and program management to further streamline its organizational processes. While the exact number of affected employees was not disclosed, the cuts impacted staff across the globe.

Alphabet Inc. recently laid off 630 employees across various divisions, including its Voice Assistant, Pixel, Nest, and Fitbit hardware units, the AR team, and advertising sales. CEO Sundar Pichai stated that the layoffs were intended to “simplify execution and drive velocity.” Prior to this, Alphabet cut 200 jobs from its core teams, including senior executives, in late April.

Apple announced layoffs of 614 employees in California in May, shortly after discontinuing its long-term project to develop an electric vehicle.

Amazon commenced the year with layoffs impacting hundreds at its Prime Video and Twitch divisions. In April, Amazon Web Services (AWS) also reduced its sales and marketing teams, followed by further cuts of over 100 customer service management roles in May.

Tesla CEO Elon Musk announced in April that the company would cut over 10% of its global workforce, a figure that could exceed 14,000 employees worldwide. Internal documents revealed that the reduction might be closer to 14%.

Source: layoffs.fyi • *as of August 26, 2024

Dell is also making cuts, particularly in its sales and marketing teams, as it pivots towards AI. Although the exact number of layoffs has not been confirmed, sources suggest the company may lay off around 12,500 employees, about 10% of its workforce.

Intel announced layoffs affecting 15,000 employees, about 15% of its workforce, as the company faces stiff competition from rivals Nvidia and AMD amid the AI boom.

IBM cut jobs in its marketing and communications teams, although the exact number was not disclosed. Earlier this year, IBM’s CFO mentioned a planned $400 million spending on restructuring, similar to last year when 3,900 jobs were eliminated.

Cisco announced an initial 5% reduction in its workforce (about 4,000 jobs) in February, followed by a further 7% reduction (around 6,000 jobs) in August.

SAP plans to restructure 8,000 roles, with many affected employees being offered voluntary leave or reskilling opportunities.

Salesforce laid off 700 employees (1% of its staff) in January, followed by another 300 job cuts later in the year. This comes after a significant reduction of 8,000 employees in January 2023.

AI startup Cohere laid off 20 employees (around 5% of its workforce) shortly after raising $500 million. Similarly, Stability AI announced a 10% workforce reduction following the exit of its former CEO.

TikTok cut around 60 jobs in its U.S. offices, mostly in sales and advertising, and announced further layoffs in its operations and marketing teams. Parent company ByteDance also reduced its Indonesian e-commerce division by about 450 jobs in June.

YouTube is eliminating 100 positions as part of a restructuring in its creator management and operations teams.

Snap Inc., the parent company of Snapchat, announced plans to cut 10% of its workforce (approximately 500 employees) in February to streamline operations.

Source: layoffs.fyi • *as of August 26, 2024

Match Group, which owns Tinder, reduced its workforce by 6% in July, while competitor Bumble cut 30% of its workforce in February.

PayPal began a restructuring program in January, resulting in the layoff of 2,500 employees, or 9% of its global workforce.

Indian companies have also been affected. Swiggy is cutting 400 jobs (7% of its workforce) ahead of its IPO, while Unacademy laid off 250 employees as schools reopened after the pandemic. Byju’s has reduced its workforce by at least 10,000 over the past two years amid financial troubles, with further cuts of up to 500 employees in April. Ola announced plans to lay off 400-500 employees in June to boost profitability ahead of its IPO.

Source: layoffs.fyi • *as of August 26, 2024

Other Indian startups like Koo and Paytm have also faced layoffs and financial difficulties.

Twitch, the livestreaming platform, reduced its workforce by 35% in January, and Discord announced a 17% staff reduction, impacting 170 employees.

The trend of layoffs across the tech industry underscores the impact of economic pressures and a shifting focus toward AI and other emerging technologies.