Global tech layoffs have been on the rise this year, with major companies such as Tesla, Google, Microsoft, and Tiktok collectively letting go of nearly 100,000 employees. While this number is significant, there is a glimmer of hope as the pace of tech layoffs has slowed compared to the previous year.
According to data from layoffs.fyi, a total of 98,000 employees have been laid off by 326 companies so far in 2024. This figure, although substantial, indicates a slight decrease in the rate of job cuts within the tech industry.
One of the recent high-profile layoffs occurred at Bytedance, the parent company of Tiktok, which cut 450 roles following the merger of Tiktok Shop with e-commerce platform Tokopedia. Similarly, Microsoft downsized its mixed reality division by 1,000 jobs, while Google reduced 100 positions in its cloud unit. Tiktok also announced plans to streamline its operations and marketing team, affecting around 1,000 roles.
Notable layoffs earlier this year included Tesla’s decision to lay off 14,000 employees, representing 10% of its workforce, due to declining demand and pricing pressures. Other companies like Getir and Stability AI also implemented significant job cuts, further contributing to the overall tally of tech layoffs.
Industry analysts suggest that some of these layoffs are aimed at demonstrating fiscal responsibility to investors. Ian Whittaker, a media analyst, highlighted that companies like Alphabet, Amazon, and Microsoft may be using these cuts to signal a commitment to financial discipline, which can be reassuring to investors.
Despite the current wave of layoffs, experts anticipate that the trend is likely to persist in the near future. However, the silver lining is the observed slowdown in the rate of layoffs compared to the same period last year, offering a ray of optimism for the tech sector.
In 2023, over 1,200 tech companies laid off more than 263,000 employees, with the first half of the year alone witnessing the loss of over 214,000 jobs. In contrast, the tech industry has seen a relatively lower number of job cuts in the corresponding period of 2024.
