- Tech layoffs refer to the process of reducing the workforce within the technology sector. This is often due to factors like company restructuring, market changes, mergers, economic conditions, or shifts in technology that lead to a need for different skills or fewer employees.
- Tech giants like Tesla, Amazon, Google, TikTok, Snap, and Microsoft have conducted substantial layoffs in the early months of 2024. Even smaller startups have experienced significant cuts, with some being forced to shut down operations entirely.
- The tech layoff wave continues to surge in 2024. After significant workforce reductions in 2022 and 2023, this year has already witnessed 60,000 job cuts across 254 companies, as reported by the independent layoffs tracker.
A slew of companies across the tech, media, finance, and retail industries made significant cuts to staff in 2023 and 2024. Tech titans like IBM, Google, Microsoft, finance giants like Goldman Sachs, and manufacturers like Dow all announced layoffs.
What are tech layoffs?
Tech layoffs refer to the process of reducing the workforce within the technology sector. This is often due to factors like company restructuring, market changes, mergers, economic conditions, or shifts in technology that lead to a need for different skills or fewer employees.
They can affect employees across various roles, including engineers, developers, sales, marketing, and support staff. These layoffs can have significant impacts on individuals, companies, and the industry as a whole, prompting discussions about workforce trends, economic health, and the evolution of technology companies.
During tech layoffs, employees may be let go from their positions, departments may be downsized or reorganised, and some roles or projects may be discontinued. Layoffs can impact employees across different levels and functions within a tech company, including engineers, developers, sales, marketing, and support staff.
Also read: Reasons behind mass layoffs at tech companies
Overview of tech layoffs in the past 2 months
The tech layoff wave continues to surge in 2024. After significant workforce reductions in 2022 and 2023, this year has already witnessed 60,000 job cuts across 254 companies, as reported by the independent layoffs tracker.
Tech giants like Tesla, Amazon, Google, TikTok, Snap, and Microsoft have conducted substantial layoffs in the early months of 2024. Even smaller startups have experienced significant cuts, with some being forced to shut down operations entirely.
In May alone, Microsoft closed down Arkane Austin, Tango Gameworks, and several other game studios as part of its cuts at Bethesda. The exact number of impacted employees is still uncertain. Additionally, Enovix laid off approximately 170 workers, accounting for a third of its total headcount, in a move to reduce annual operating costs. Cue Health is also eliminating 230 employees, representing about 49% of its workforce, as part of a cost-cutting measure.
April saw Google announcing layoffs of at least 200 people from its “core” organisation, affecting key team and engineering talent crucial for Google’s flagship products. According to a Google spokesperson, these layoffs are part of a reorganisation aimed at improving team efficiency and resource utilisation. Simultaneously, Google plans to recruit equivalent positions in Mexico and India to maintain a balanced global business development.
Also read: Dell layoffs hit 13,000 in 2023, double the number claimed
Tesla, known for its electric cars and self-driving technology, has also resorted to layoffs due to increased market competition and declining sales. Founder Elon Musk fired two executives and is planning hundreds more layoffs across various departments, including the Supercharger team and new car program, citing the necessity to make tough decisions to reduce headcount and costs.
TikTok is laying off 250 employees in Ireland as it restructures its Training and Quality team, while Nike intends to eliminate 740 employees at its Oregon headquarters this summer, as reported in a WARN Act notice.
In addition, AWS will cut hundreds of jobs across Sales, Marketing, Global Services, and its Physical Stores Technology team. Apple is also laying off 614 employees in California following the discontinuation of its electric car project, according to a WARN notice.
These instances from well-known technology companies in the past two months reflect a broader trend of layoffs affecting startups and small to medium-sized enterprises, highlighting the ongoing challenges in the tech industry.
How to survive during layoffs?
Layoffs are happening, but only a fraction of the workforce is being laid off. The U.S. government, for example, is hiring tech workers like crazy right now, and there are tens of thousands of jobs up for grabs in some industries.
It’s not just the overall global recession or even the troubled tech industry, it’s that some big tech companies have overhired over the past few years, especially during the pandemic, and the industry needs to get back on its feet.
So first you need to keep a normal attitude about this, don’t be intimidated by the overwhelming news of tech layoffs. However, it is always good to plan, and what can we do to survive this?
Stay alert to changes in your company and industry. It is not only necessary to be vigilant about the wind and wind in the company, but also to pay attention to relevant laws and regulations, such as the import and export regulations of the country, the statement of the cooperative enterprise, the introduction of laws and regulations of AI or your related industry.
Always learning and upskilling will not only help increase your current salary and value to your current company, but it will also increase your opportunities if you need to move positions. You can even go one step further and learn a wider range of skills to help you better understand your business as well as your role.
Finally, if you have already received a layoff notice, please adjust your attitude as soon as possible. Often layoffs are simply a result of poor management, not a reflection on you, your skills, or your abilities, so try not to take it personally. This can also be a good thing, because changing companies is a normal thing to do, and it can be a good opportunity for you to jump, get a raise, and get promoted.
