Tech industry sees over 98,000 job cuts in first half of 2024

The tech industry is experiencing a significant wave of job cuts, with more than 98,000 employees laid off from over 330 companies globally in the first half of 2024. Layoffs.fyi, a platform monitoring tech layoffs, reported that 98,834 employees have been affected.

Prominent companies such as Apple, Google, Microsoft, and Meta are among the 333 companies implementing these job cuts.

Economic uncertainties continue to impact the tech sector’s workforce. In May alone, 39 companies laid off a total of 9,742 employees, as reported earlier this month by layoffs.fyi.

Tech giants on a layoff spree
Google, for instance, let go nearly 200 employees from its core teams in May, primarily affecting engineering positions in Sunnyvale, California. This move, the company said, is part of Alphabet’s broader downsizing plan, announced last year, aiming to reduce its workforce by about 6 per cent.

Microsoft also made significant cuts earlier this month, laying off over 1,000 employees across various divisions, including the Azure cloud and mixed reality units. Most of these layoffs were within the Strategic Missions and Technologies organisation, which focuses on selling cloud software and server rentals to specialised businesses like telecom firms and space companies.

Additionally, Microsoft eliminated 1,900 jobs from its gaming division following the acquisition of Activision Blizzard, and the company has seen several executive departures as it restructures.

Job-search platform Indeed laid off approximately 8 per cent of its workforce in May 2024, primarily affecting employees in the United States. This was the second round of layoffs in the company which impacted research and development units, among other teams responsible for delivering products to customers.

Meanwhile, Toshiba announced plans to cut 4,000 domestic jobs as part of its restructuring efforts, amounting to 6 per cent of its local workforce. The company reportedly has plans to move some office functions from central Tokyo to Kawasaki, a city west of the capital.

TikTok, the popular short-video platform, has laid off over 1,000 employees globally, impacting operations and marketing teams. Although TikTok has provided limited official explanations, industry analysts speculate that the layoffs may be a cost-cutting measure in response to the fluctuating regulatory environment affecting social media giants.

Amazon’s layoffs spanned various units, including Audible (5 per cent), Prime Video, Twitch (35 per cent or roughly 500 employees), and Buy with Prime teams. Meanwhile, Meta, Facebook’s parent company, recently laid off a small portion of its workforce as part of restructuring its Reality Lab, responsible for AR/VR headsets, software, and other metaverse projects.

Indian tech ecosystem handing pink slips
In India, Fintech firm One97 Communications, the parent company of Paytm, confirmed the layoff of an undisclosed number of employees on June 10. The Paytm sales division was reduced by nearly 3,500 employees, bringing the total headcount to 36,521 by the end of the March 2024 quarter, as reported by PTI.

ReshaMandi, a B2B marketplace specialising in silk products, laid off 80 per cent of its employees after failing to secure Series B funding. Retail and food delivery giants like eBay, Flipkart, and Swiggy have also made job cuts to realign their priorities. Other Indian companies facing layoffs include Ola and Byju’s. Business Standard