Artificial intelligence: does it threaten the future of robots? And why have 34,000 workers already been laid off by tech companies in 2024?
In 2024, technology companies have already laid off 34,000 workers due to the development of artificial intelligence.
Layoffs in the technology industry
Since the beginning of this year, due to the focus on the development of artificial intelligence, technology companies have laid off 34,000 workers. This is reported by the Financial Times. Among the companies that have cut jobs are well-known brands such as Microsoft, Snap, eBay and PayPal.
The number of laid off employees
According to Layoffs.fyi analytics, since the beginning of January, hundreds or even thousands of jobs have already been laid off at companies such as Microsoft, Snap , eBay and PayPal. In total, 138 technology companies laid off workers this year.
Although this number is lower than in 2023, when 263 became redundant 000 jobs, some companies such as Amazon, Microsoft, Meta, Google and Spotify have also announced optimization this year.
Reasons for layoffs
Analysts believe that the latest wave of layoffs indicates a redistribution of company resources for investing in new areas, in particular in generative artificial intelligence. In addition, the companies also demonstrated to shareholders that they continue to maintain spending discipline.
Last year, companies realized that the transition to a digital lifestyle would not last longer than the COVID-19 pandemic. Therefore, when life began to return to normal, the need for such a large staff disappeared. So they had to cut costs, including layoffs.
According to Daniel Kim, associate professor of management at Columbia Business School, this year's cuts are more strategic because they coincide with active hiring in new areas.
- Financial Times - publication that writes about socio-economic and financial news.
- Microsoft is one of the leading technology companies specializing in the development of software and other technology products.
- Snap is a company that develops the popular Snapchat messenger and other products in the field of social networks.
- eBay is a famous online auction where you can buy and sell goods.
- PayPal is a payment company that provides the ability to make payments and money transfers online.
- Layoffs.fyi is a service that tracks staff turnover in the technology industry.
- Amazon is a leading online shopping platform selling goods of various categories.
- Meta is a company that develops various technologies and products, including social networks.
- Google is a well-known search engine and a leading technology company that develops various tools and services.
- Spotify is a popular streaming service that provides access to music and podcasts.
- Grammarly is a platform for improving written English.