In 2024, the tech industry is experiencing a continuation of job cuts, adding to the trend seen in the previous year. Numerous tech and startup employees have faced layoffs, with a total of 7,528 job cuts across 48 tech companies. Major players like Google and Amazon are also planning further job reductions as part of cost-cutting measures.
Among the notable tech companies that have announced layoffs in 2024 are Riot Games, Google, Amazon Audible, Amazon Prime Video, Twitch, Discord, Unity Software, Xerox, and Frontdesk.
Despite the new year beginning, the tech industry is grappling with ongoing challenges, and many employees are facing job insecurity as companies implement measures to navigate economic uncertainties. The trend of job cuts observed in 2023 is persisting into the current year.
As we step into 2024, the technology industry is experiencing a notable surge in layoffs. According to Layoffs.fyi, a tech layoffs tracker, the first few weeks of the year have already seen more than 34,000 employees being laid off. This trend has impacted major players in the industry, including Google, Amazon, and over 100 other tech firms.
The widespread layoffs underscore the persistent economic challenges confronting the once-thriving tech sector. In the previous year, industry giants such as Meta, Twitter, and Cisco had already undertaken substantial workforce reductions, reflecting the evolving landscape and uncertainties within the tech industry.
As more tech companies join the ranks of those implementing substantial job cuts, there are growing concerns that the employment crisis in the industry may persist throughout 2024 unless market conditions improve.
Alphabet’s Google initiated the year with a round of layoffs, affecting several hundred employees across various divisions, including engineering, AI research, hardware, and product development. Notably, Google’s advertising sales team experienced significant cuts as part of the company’s ongoing “organizational changes” for 2024. CEO Sundar Pichai indicated that the layoffs are aimed at enhancing efficiency and will extend to impact additional roles.
Microsoft also made significant contributions to the tech workforce cuts, eliminating 1,900 jobs primarily from its video game segment in the aftermath of the Activision Blizzard acquisition. This represents approximately 8% of Microsoft’s total gaming division. Leadership positions were not spared, with the president and chief design officer of Blizzard departing the company as part of the restructuring efforts.
Here are the companies that have announced layoffs in 2024 so far:
SAP: On Tuesday, German software firm SAP SE announced a significant restructuring program for 2024, amounting to 2 billion euros ($2.2 billion) and impacting 8,000 roles. The move is part of the company’s strategy to enhance its focus on growth in artificial intelligence (AI)-driven business areas.
TikTok: TikTok has confirmed the layoff of dozens of workers within its advertising and sales unit. The social media platform disclosed on Tuesday that it is reducing 60 jobs, although it did not specify the reason for the layoffs.
Riot Games: Riot Games, a subsidiary of Tencent Holdings, has announced plans to lay off approximately 11% of its global workforce, totalling 530 employees.
Google: Alphabet’s Google is undergoing significant restructuring, leading to layoffs within its digital assistant, hardware, and engineering teams, as confirmed by the company. In an internal memo, CEO Sundar Pichai communicated to employees that additional roles would be affected. Pichai explained that this year’s layoffs are part of an effort to “remove layers to simplify execution and drive velocity in some areas.”
Amazon Audible: Audible, the online audiobook and podcast service, is implementing workforce reductions, affecting approximately 5% of its employees. In a memo to the staff, Audible CEO Bob Carrigan noted that while the company is in good shape, it is confronting an “increasingly challenging landscape,” prompting the decision to streamline the workforce.
Amazon Prime Video: Amazon has announced plans to lay off several hundred employees within its streaming and studio operations. The internal note from the company revealed that the affected staff in Prime Video and Amazon MGM Studios in the Americas will be notified of the layoffs in the near future.
Amazon’s Twitch: Twitch, the streaming platform, is set to reduce its workforce by 35%, equating to approximately 500 employees, as reported by Bloomberg News. This move comes after the company laid off more than 400 employees in March 2023 due to user and revenue growth falling short of expectations.
Discord: Discord, the social chat and messaging startup, has informed its employees of a workforce reduction on January 11, with plans to cut 17% of its staff. Approximately 170 jobs will be affected by these layoffs, according to an internal memo sent by founder and CEO Jason Citron.
Unity Software: Unity Software, a videogame software provider, is set to reduce its workforce by approximately 25%, equivalent to 1,800 jobs, according to a regulatory filing.
Xerox: On January 3, IT company Xerox revealed its plans to cut its workforce by 15%, impacting approximately 3,000 employees. The decision is part of a broader initiative to introduce a new organizational structure and operating model. The layoffs are anticipated to be implemented in the first quarter of 2024.
Frontdesk: US-based prop-tech company Frontdesk has terminated all 200 of its employees. CEO Jesse DePinto delivered the news during a brief two-minute Google Meet call, explaining that the company had opted for state receivership instead of declaring bankruptcy.
