The tech sector is still grappling with a wave of layoffs as June kicks off. Despite significant job cuts in 2023, this year has seen a persistent trend of layoffs, especially in the second quarter with 21,473 job reductions in April and 9,742 in May. Regrettably, the situation seems to be worsening again, as over 1,400 job losses have already been recorded in the first week of June. Major players like Microsoft and Google have commenced fresh rounds of layoffs this month, citing continuous restructuring and strategic shifts within the tech industry.
Microsoft recently announced a new wave of layoffs on Monday, affecting around 1,000 employees. The job cuts are mainly impacting teams involved in HoloLens 2 and the Azure Moonshots project. Specifically, the Mixed Reality wing, crucial to HoloLens 2 development, and the Azure for Operators and Mission Engineering departments are among those affected.
The company stated that these layoffs are part of a larger restructuring effort within Microsoft’s Mixed Reality division. This comes after a significant round of layoffs over a year ago, which saw over 10,000 jobs cut. CEO Satya Nadella had previously emphasized a shift in the company’s hardware portfolio, a trend that now appears to be extending to their advanced technology and cloud services divisions. The Azure for Operators and Mission Engineering departments, both established in 2021, are now feeling the impact of these changes.
Google, following in the footsteps of Microsoft, has recently implemented layoffs within its Cloud unit. This downsizing affects multiple teams, including sales, consulting, strategy, operations, and engineering, and impacts hundreds of employees. Despite the Cloud unit’s rapid growth, Google has made the decision to trim its workforce, possibly redirecting resources towards artificial intelligence projects. Last week, employees were informed about the impending layoffs, which have now been put into effect.
It is worth noting that the tech industry as a whole is experiencing a trend of job cuts, with seven companies announcing layoffs in the first six days of June, affecting a total of 1,410 employees. It remains to be seen whether this wave of layoffs will continue throughout the month or if companies will stabilize their workforce numbers.
In May 2024, the tech industry witnessed a decrease in layoffs compared to previous months. A total of 9,742 jobs were cut by 39 companies, down from April’s 21,473 layoffs across 50 companies. Google itself had already initiated downsizing efforts, including the termination of around 200 engineering positions in Sunnyvale, California. Other notable job cuts came from Indeed, Toshiba, TikTok, and Walmart, impacting various sectors and locations.
Overall, the tech industry is undergoing significant changes, with companies like Google and Microsoft making strategic shifts and adjusting their workforce accordingly.
Furthermore, Microsoft’s gaming sector experienced substantial job cuts, resulting in the closure of several studios like Arkane Austin, Tango Gameworks, and Alpha Dog Studios. Tesla also reduced its workforce by more than 6,700 employees in different departments such as software, service, and engineering, with layoffs taking place in various states such as Texas and California. These layoffs are indicative of continuous restructuring and cost-saving efforts within the technology sector as companies respond to changing market dynamics and regulatory landscapes.