In the preceding year, the global technology sector grappled with substantial layoffs, and the trend continues into 2024 without any signs of improvement. Reports indicate that over 240,000 jobs were lost in tech firms in 2023, with major players like Google, Amazon, Microsoft, Meta, Nokia, Accenture, and others contributing to mass layoffs. India also witnessed a significant impact, with tech companies such as Paytm, Sharechat, Dunzo, and Byju implementing large-scale job cuts. Industry experts attributed these firings to surplus hiring during the pandemic, high inflation, and poor consumer demand.
Data from the tech layoff tracker Layoffs.fyi reveals that a staggering 262,595 employees were laid off by 1,189 companies in 2023, marking it as the worst year for job cuts in recent history, with a 50% increase compared to 2022. Unfortunately, 2024 has commenced in a similar fashion, with 30,375 employees receiving pink slips from 115 tech firms within the first month.
The upheaval extends across various renowned companies. United Parcel Service (UPS) announced a substantial layoff of 12,000 employees in its fourth-quarter earnings report, aiming to save $1 billion in costs. SAP, the German software giant, unveiled a massive restructuring affecting 8,000 employees, aligning with a shift towards gen AI capabilities and automation. PayPal plans to reduce its workforce by 9%, equating to 2,500 employees.
Google has already initiated two separate layoffs in January 2024, affecting over 1,000 employees in various teams. Microsoft continued its trend from 2023, handing pink slips to 1,900 employees at Activision Blizzard and Xbox in January, constituting about 8% of the Microsoft Gaming division. Amazon laid off several hundred employees in its Prime Video and MGM Studios division due to a shift in focus.
Social media platforms were not immune to this trend, with Twitch letting go of 500 employees and Discord sacking 170 people. TikTok also reportedly fired 60 employees in January 2024. Other tech firms, including Unity, Wayfair, Pixar, Salesforce, eBay, Vroom, Riot Games, Audible, Block, and Okta, have all made headlines for trimming their workforces due to various reasons such as financial performance improvement, overexpansion, economic conditions, or organizational growth outpacing revenue. The cumulative effect of these layoffs paints a challenging picture for the tech industry and its workforce in the coming months.