Wave of layoffs in global tech industry: More than 23,000 people lost their jobs in January
Major tech companies such as Alphabet, Meta and Microsoft experienced significant financial gains on the stock market in January . However, unfortunately, this has also led to job losses.
During January of this year, about 23,670 workers were laid off from 85 technology companies, the highest level since last March, according to data from the website Layoffs .fyi. This figure even surpassed March, when nearly 38,000 people lost their jobs in technology.
Who is affected by the wave of layoffs?
- SAP announced 8,000 layoffs last week
- Microsoft cut 1,900 positions in its gaming division
- Highly regarded fintech startup Brex laid off 20% of its workforce
- eBay cut 1,000 jobs, representing 9% of its full-time workforce
- Amazon has eliminated hundreds of positions across Prime Video, MGM Studios, Twitch and Audible
- Earlier this month, Google laid off several hundred workers across multiple teams
- Unity has announced it will cut around 25% of its workforce
- Discord is cutting 17% of its workforce due to rapid growth and inefficiencies in operations
Why are layoffs happening?
This trend has been observed since the mass layoffs of 2023, when more than 277 companies laid off approximately 90,000 employees. Despite improving economic conditions, companies continue to use cost-cutting strategies.
eBay CEO Jamie Iannone told his employees on the company blog : “We need to better organize our teams to improve productivity, to become more flexible by combining similar tasks and make decisions faster.”
Google CEO Sundar Pichai has warned his employees to expect more layoffs this year as part of meeting "ambitious goals."
Outlook for 2024
According to ResumeBuilder, 38% of executives expect further layoffs, and about half have paused hiring due to concerns about a possible recession and the impact of artificial intelligence
Especially the introduction of artificial intelligence can be a factor that significantly influences this - 40% of respondents plan to quit during the integration of AI, following Dropbox, Google and IBM.
Here are some companies planning layoffs during 2024, according to Business Insider.
- Citigroup: plans to lay off 20,000 employees as part of a corporate restructuring.
- Nike: is implementing a cost-cutting plan that could relate to $ 2 billion and includes initial payments.
- Intel: additional layoffs expected in 2024 following fifth rounds of layoffs last year.
- BlackRock: plans to cut staff by 3%.
- Rent the Runway: plans to cut 10% of corporate positions as part of a restructuring.
- Unity Software: will lay off 25% of its workforce.
- Salesforce: will cut 700 jobs companywide.
- Flexport: says it will cut 20% of its workforce.
Questions Answered
How many people lost their jobs in January in the global tech industry?
About 23,670 people in the global technology industry lost their jobs in January.
Which companies were affected by waves of layoffs in January?
Companies including SAP, Microsoft, Brex, eBay, Amazon, Google, Unity and Discord laid off workers in January.
Why are layoffs happening in the tech industry?
Layoffs in the technology industry are a result of lean strategies and companies' efforts to improve efficiency and speed.
More information
- SAP: German technology company announcing layoffs of 8,000 employees.
- Microsoft: an American company that cut 1,900 positions in its gaming division.
- Brex: fintech startup that laid off 20% of its staff.
- eBay: online auction that eliminated 1,000 jobs.
- Amazon: e-commerce company that eliminated hundreds of positions across its divisions.
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Discussion of the topic – The tech industry is experiencing a wave of layoffs, with 23,670 people out of a job in January alone
In January, international technology companies experienced significant gains in the stock market, but at the same time increased the pace of layoffs. About 23,670 workers lost their jobs at 85 companies this month, the highest number since March last year.
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