Let’s talk about tech layoffs in 2024. After enduring two challenging years marked by massive tech layoffs, 2024 was anticipated to be a turning point, a year of resurgence and growth.

However, even amidst early signs of revival, with global IT spending projected to surge by 8%, crossing a staggering $5.1 trillion, jobs in the sector are still on shaky ground.

Last year witnessed major layoffs across the tech landscape. Giants like Amazon, Meta (Facebook’s parent company), Cisco, Microsoft, IBM, Google, SAP, and Salesforce, along with numerous smaller firms, initiated substantial job cuts.

This trend seems to be continuing into 2024. So, if you are concerned about tech layoffs in 2024, you have a valid reason to do that – the future is really scary. In this article, we will be showing you a list of reputable tech companies that have already started cutting their workforce or already announced they will be downsizing in 2024.

We will also be regularly updating the list to keep you informed about recent layoffs happening in the industry. So we encourage you to keep checking back whenever the thought of tech layoffs in 2024 crosses your mind.

But Why Are There So Many Tech Layoffs?

Looking at the intensity of the recent layoffs happening in the sector, it’s just normal to begin to wonder what could have been the cause. Well, the root of the problem can be traced back to the pandemic era.

During those times of lockdowns and remote work, there was a surge in technology demand. Tech companies, riding this wave, hired extensively. Now, as the world adjusts to post-pandemic realities and tech demand normalizes, these companies face revenue declines, prompting them to reassess their workforce.

Also, the advent of artificial intelligence (AI) has also, in part, contributed to the massive layoffs happening in the tech sector. Many companies are choosing to go with automation rather than human skills and many have failed to find a balance between the two. Therefore, they decided to let go of human workers for AI.

According to Layoffs.fyi, a site dedicated to tracking job losses in tech, the numbers are telling. In 2023, 1,186 tech companies dismissed about 262,682 employees, a significant increase from the 164,969 layoffs in 2022. And in 2024, the trend continues, with 35 tech companies already laid off 5,586 employees.

Tech Layoffs in 2024 – A Look at Companies Impacted

Tech Layoffs 2024
Tech Layoffs 2024

Google

In a significant shift towards automation, Google has reduced its ad sales team, impacting several hundred employees. According to the company, the move is part of a larger strategy initiated in early 2023, where parent company Alphabet reduced its workforce by 6% – a decision affecting 12,000 people.

The downsizing spans various teams, including those working on digital voice assistants, Fitbit, and Pixel, showing that the layoff impacted various sectors of the tech giant’s diverse portfolio.

Alphabet

Alphabet’s downsizing isn’t limited to Google alone. The conglomerate has made cuts across several teams, including engineering and those responsible for key products like digital voice assistants, Fitbit wearables, and Pixel smartphones.

In a strategic reorganization, Alphabet is consolidating its various hardware teams, a move that also saw the departure of Fitbit co-founders James Park and Eric Friedman.

Wayfair

The e-commerce giant, after reducing its workforce by 1,750 last year, is continuing with a significant layoff of 1,650 employees. CEO Niraj Shah emphasizes this as a step to secure the company’s long-term positioning. This decision follows a directive for increased working hours, highlighting the company’s aggressive strategy to navigate current market challenges.

Macy’s

Yes, retail giant Macy’s is also feeling the pinch. The company recently announced that it will be cutting 2,350 jobs and will also be shutting down five department stores.

This move affects about 13% of its corporate staff and 3.5% of the total workforce. Macy’s strategy is to align the company’s operations to the ongoing pressures faced by traditional retail in adapting to the evolving market.

Twitch

Owned by Amazon, Twitch is planning to reduce its staff by 35%, amounting to approximately 500 employees. CEO Dan Clancy stated this is part of an effort to ‘rightsize’ the company, acknowledging that it has grown more than necessary for its business size. This is in parallel with Amazon’s Audible division, which is also undergoing job cuts.

Amazon

On the same note, Amazon is reducing its workforce across its Prime Video and MGM Studios divisions. A review of the company’s operations led to the decision to cut several hundred jobs, as detailed in a memo from Mike Hopkins, the senior vice president of Prime Video.

Duolingo

The popular language learning app also recently announced that it will be cutting 10% of its contract employees, shifting its focus towards AI for content generation. Even though we don’t yet know how many workers this will be affecting, Duolingo assures that this will not affect its full-time staff.

Humane

AI startup Humane is reducing its workforce by 4%, which translates to 10 employees. CEO Bethany Bongiorno explained that this is part of a strategy to prepare for sustained growth, despite the cutbacks. While this may look like a small number compared to other tech layoffs in 2024, it will still be affecting some individuals. So, it’s worth mentioning too!

Discord

Jason Citron, the CEO of Discord, recently announced that the platform will be laying off 17% of its workforce, impacting around 170 employees. He said the decision was aimed at enhancing the company’s focus and improving collaboration to increase agility.

Unity Software

The video game software developer is undergoing a significant restructuring, cutting a quarter of its staff, which amounts to roughly 1,800 jobs. This is part of Unity Software’s plan to achieve long-term and profitable growth.

Lost Boys Interactive

This game developer studio, acquired by Gearbox in 2022, reportedly laid off a substantial number of employees on January 12. Even though the reason for the move was not explained by the company, many people believed the transfer of ownership triggered the layoff.

Pixar

Facing challenges in achieving profitability in streaming, Pixar plans to lay off up to 20% of its 1,300-person workforce in 2024. This decision reflects parent company Disney’s strategy to scale back the studio’s output to achieve profitability in streaming.

Audible

The audiobook division of Amazon, Audible, is laying off 5% of its staff. The company cites a challenging landscape as the primary reason for this decision.

Rent the Runway

Following the resignation of its COO and president, Anushka Salinas, Rent the Runway is cutting about 10% of its corporate roles as part of a restructuring plan.

BenchSci

The AI and biomedical startup announced in a LinkedIn post that it will be cutting about 17% of its workforce on January 8, attributing the decision to shifts in the economic environment.

Flexe

Also on January 8, the online retail logistics company eliminated 38% of its staff, following a round of layoffs in September 2023.

NuScale

The small modular nuclear reactor company announced on January 8 that it is laying off 28% of its workforce, or 154 workers, as it refocuses on key strategic areas.

InVision

After a 12-year run, the design collaboration startup valued at nearly $2 billion, is shutting down at the end of 2024. Apparently, that is going to result in all of its workforce losing their job.

Orca Security

The Israel-based cybersecurity unicorn is cutting about 15% of its workforce, totaling 60 employees, but plans to reassign some of the impacted staff to other positions within the company.

Front desk

This startup laid off its entire 200-person workforce on January 2 after attempts to raise more capital failed. This mass layoff occurred just months after acquiring rival Zencity.

That is it; some of the giant tech companies have been impacted by the recent wave of layoffs happening in the sector. But, as we said earlier, it didn’t just start in 2024, the whole rave began in 2023 – marked as a massive layoff year for tech. let’s quickly see some of the notable tech layoffs that happened in the year.

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Notable Tech Layoffs in 2023

Tech Layoffs 2023
Tech Layoffs 2023

Twilio – December 4

Twilio, a cloud communications company, executed its third major staff reduction within a year, impacting approximately 300-400 employees. The sales teams for contact center software and consumer data products were notably affected.

Twilio expressed that these layoffs were crucial for optimizing their technology and analytics business for growth. Affected employees received 12 weeks of salary as severance, plus additional compensation for each year of service, with the overall cost estimated between $25 and $35 million.

Broadcom and VMware – December 1

Following Broadcom’s $69 billion acquisition of VMware, 1,267 VMware employees faced layoffs, primarily in the Palo Alto offices. This move, anticipated among VMware staff, was seen as a refocusing effort, potentially welcomed by customers and partners.

Amazon and Alexa – November 20

Amazon announced layoffs at its Alexa division, shifting focus to generative AI. This change, part of a broader alignment with business priorities, added to the significant job cuts Amazon had already undertaken, including in its devices and services team.

Splunk – November 1

Network management company Splunk announced a 7% workforce reduction, about 560 jobs, ahead of its acquisition by Cisco. This followed an earlier reduction of 325 jobs, with the CEO highlighting market unpredictability as the reason, unrelated to the Cisco acquisition.

Nokia – October 19

Nokia planned to cut up to 14,000 jobs due to decreased demand for 5G equipment, following a 20% decline in net sales and a 69% drop in profit. The company aimed to save between $842 million and $1.2 billion by 2026, with substantial cost reductions expected in the subsequent years.

Meta (Facebook Agile Silicon Team) – October 4

Meta, Facebook’s parent company, cut jobs at its metaverse custom silicon unit, FAST, shortly after releasing its Quest 3 mixed reality headsets. This move aligned with the company’s focus on metaverse development.

Airtable – September 15

Airtable, a low-code software company, underwent a second layoff round in nine months, cutting 27% of its workforce (237 employees). This decision was part of Airtable’s shift to focus on large enterprise clients and control spending, aiming for cash-flow positivity.

Alphabet – September 14

In September, Alphabet, Google’s parent company, laid off hundreds from its recruiting team to streamline operations amid economic uncertainties and competition in AI and generative AI. The company shifted its focus towards engineering and technical roles, indicating a strategic realignment in response to industry trends.

Tech Layoffs in 2024 – Final Note

As we reflect on the past year, it’s clear that 2023 was marked by widespread and often devastating layoffs in the tech industry. This turbulent phase left many talented individuals seeking new opportunities and companies reevaluating their strategies.

Now, as we navigate through 2024, the trend of layoffs appears to be persisting, affecting a range of companies from established giants to innovative startups.

We understand the importance of staying informed during these uncertain times. Therefore, we will continue to update our list of layoffs in the tech industry. So, always check back for the latest developments on tech layoffs in 2024.

We all hope that the trend of layoffs will be short-lived this year, and we look forward to a more stable and thriving tech sector.

FAQs

Will Tech Layoffs Continue in 2024?

Tech Layoffs 2024
Tech Layoffs 2024

While it’s challenging to predict the future with certainty, early trends in 2024 suggest that tech layoffs may continue, but possibly at a different scale or pace compared to 2023. So, we may be experiencing more tech layoffs in 2024.

Why are Many People Losing Their Jobs in the Tech Sector?

There are several reasons for the recent wave of layoffs in the tech sector. Firstly, economic uncertainties and market fluctuations have led companies to reassess their budgets and workforce needs.

Secondly, the rapid growth during the pandemic led to over-hiring, which companies are now correcting. Again, shifts in business priorities, like a move towards automation and AI, are also influencing workforce decisions.

Which Part of Tech is Mostly Affected?

Areas like sales, customer support, and some engineering departments have seen significant layoffs. Companies are also reevaluating roles that can be automated or are not directly aligned with their core business focus. 

However, the impact is not uniform across the sector, with some areas like AI, cybersecurity, and cloud services continuing to grow.

Can these Massive Layoffs be Traced to AI?

While AI is a factor, it’s not the sole reason for the layoffs. The integration of AI into various business processes can lead to job redundancies in certain roles. However, the layoffs are more broadly associated with economic factors, shifts in consumer demand, and strategic realignments within companies.

Which Tech Company is Laying Off in 2024?

Several tech companies have announced layoffs in 2024. Notable among them are Google, Alphabet, Wayfair, Macy’s, Twitch, Amazon, Duolingo, Humane, Discord, Unity Software, and others as mentioned earlier in the article. These layoffs span a wide range of functions and indicate an industry-wide trend of workforce restructuring

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