2024 Tech Layoffs: 46 Companies laid off 7500+ Employees in the First Two weeks of January
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January 2024 Tech Layoffs
When 2024 began, the tech industry faced a wave of layoffs. Over 7,500 workers were laid off by 46 tech companies, including startups, in just the first two weeks. This unsettling trend, fuelled by the rise of generative AI (GenAI), continues to grow, threatening millions of jobs globally. These layoffs, a continuation of the previous year’s holiday season, are set to impact workforces worldwide, including India. The first to announce layoffs in 2024 was Frontdesk, an online rental startup, which dismissed 200 employees in just a 2-minute Google video call. Other tech giants, like Google and Amazon, have also announced significant job cuts. The number of layoffs is rising as 2024 progresses, which is worrisome for the technology sector.
Company-wise Analysis of Layoffs 2024
Based on the most recent data from layoff.fyi, a website dedicated to tracking job cuts in the tech sector, it is evident that 46 tech companies have collectively laid off 7,528 employees by January 14, 2024.
This is not an isolated incident. Over the course of 2022 and 2023, tech companies worldwide, including startups, terminated more than 425,000 employees. India, too, felt the impact, with over 36,000 employees being let go during the same period. Layoffs have become the norm in the tech industry, highlighting how unstable the field can be. How these changes will affect the IT industry in the future is still up in the air as we go further into the year 2024.
Here we go into the details of the layoffs, assessing the circumstances at each company and possible reasons behind their decisions
Google has announced layoffs affecting hundreds of employees across its digital assistant, hardware, and engineering teams. The company stated that these layoffs are part of ongoing organizational changes.
Apple
According to a report by Bloomberg, Apple is making the decision to shut down a team of 121 individuals in San Diego who were dedicated to enhancing Siri. This move comes as a surprise, considering Apple’s ability to avoid the widespread layoffs that other tech companies have faced in recent times.
Amazon Audible
Amazon’s Audible, an online audiobook and podcast service, is reducing its workforce by about 5%. The CEO of Audible communicated this decision to the employees via a memo.
Amazon Prime Video
Amazon Prime Video is also reducing its workforce, with several hundred employees in its streaming and studio operations facing layoffs.
Discord, a social chat and messaging startup, announced a 17% cut in its staff, affecting about 170 jobs.
Unity Software
Unity Software, a video game software provider, announced a reduction of approximately 25% of its workforce, amounting to 1,800 jobs.
Amazon’s Twitch
Amazon’s Twitch, a popular streaming platform, is reducing its workforce by 35%, which equates to about 500 workers.
Xerox
IT company Xerox announced a 15% reduction in its workforce, affecting about 3,000 employees.
Frontdesk
US-based proptech company Frontdesk fired all 200 employees during a two-minute Google Meet call.
Meta
Meta, the parent company of Instagram, started 2024 by laying off some of its technical program managers (TPMs). Reports suggest that at least 60 such roles were either consolidated or eliminated.
Pixar
Pixar, the animation studio owned by Disney, is also reportedly planning to cut jobs this year.
Citigroup
Global banking major Citigroup plans to reduce its workforce by 10% over the next two years, which equates to about 20,000 employees.
Veeam Software
Veeam Software, a global provider of data management solutions, has reportedly laid off 300 employees.
Cost-Cutting or AI Adoption?
Many companies say that the recent layoffs are due to cost-cutting and realignment of core business strategies. But we wonder if there are other factors involved. Despite the rise in tech innovation and expected Compound Annual Growth Rates (CAGRs) till 2030 for almost every industry layoffs will keep increasing.
We believe that Artificial Intelligence (AI) is the true driving force behind this phenomenon. AI helps businesses to achieve more with less, and that means fewer jobs for human workers. AI not only reduces costs, but also improves performance, scalability, and customer satisfaction. A report by IDC says that businesses that use GenAI will have a 20% increase in productivity by 2026. And teams that use code generation copilots will boost their success rate by 70%.
These benefits make businesses adopt AI faster than they can manage their human commitments. The result is a wave of layoffs in tech fields that AI can replace easily. We don’t know if this trend will continue, but it seems the job cuts are not going to end anytime soon. So we need to watch these changes and how they will affect the global workforce in the long term. AI is transforming the tech industry, and we need to be prepared for it
