Ringing In A New Era: Tech Industry Sees Respite From Layoffs In 2024, 42% Down.
As the world bids adieu to 2024 and jumps into 2025, the tech industry is breathing a sigh of relief. After a tumultuous 2023 marked by widespread layoffs, the sector witnessed a major decline in job cuts in 2024.
With a 42% drop in layoffs compared to the previous year, the tech industry fastened the seatbelts to enter a new era of growth and stability.
According to data, 619 companies laid off 151,484 employees in 2024 which is a substantial decrease from the 260,000 job cuts in 2023.
The year began with a moderate number of layoffs with 123 companies cutting 34,137 jobs in the first quarter.
January saw the highest number of layoffs with 15,639 job cuts in February and 7,403 in March. Tech giants like Google, Microsoft, and TikTok implemented significant job cuts and restructuring efforts during this period.
The second quarter saw a spike in layoffs, with April recording 22,423 job cuts by 59 companies. May and June followed with 11,011 and 10,083 layoffs, respectively.
Also, read| Tech Layoffs Continue Downward Trend: October Sees Lowest Number of Job Cuts
Cisco announced major reductions to streamline its operations and redirect resources to emerging technologies like AI and cybersecurity.
Intel’s announced cutting 15,000 jobs, or 15% of its workforce, as part of a cost-cutting plan. Tesla also initiated layoffs impacting 21,473 employees across 50 companies in the tech industry.
In September, Microsoft’s gaming division laid off approximately 650 employees as Xbox chief Phil Spencer announced in an internal memo. This decision was made to align the team’s structure after a recent acquisition and to manage the business for long-term success.
Early In August, Apple Inc. laid off 100 jobs in its Apple Books app and Apple Bookstore, reducing the service division’s workforce. This includes furloughing engineers and other service teams such as the employees in Apple News.
Also, read| Sundar Pichai Announces Major Job Cuts In Google, Slashes 10% Of These Top Roles
The third quarter began with a decline in layoffs with July reporting 9,051 job cuts. However, August saw a significant hike with 25,944 layoffs, as tech giants like Meta and AMD implemented realignment strategies prioritising high-growth areas. September saw a notable dip, with 3,765 layoffs, indicating some stability in the tech sector.
When it comes to notable layoffs, several major tech companies reduced their workforce in October. Dropbox, a US-based cloud storage solution provider, laid off 527 employees which is approximately 20% of its workforce.
Kraken, a cryptocurrency exchange company cut 400 jobs and about 15% of its staff. TikTok also laid off hundreds of employees globally mainly from Malaysia, as part of its shift towards AI-powered content moderation.
Throughout the year, traditional tech fields like software, hardware, and social media have been most affected by layoffs, but not as severe as in 2023.
The final quarter of 2024 experienced a further decline in layoffs. October reported 3,659 job cuts, followed by 5,925 in November, and December ended with 2,268 layoffs, the lowest monthly total of 2024. This consistent downward trend suggests that the tech sector may have adapted to economic challenges and market shifts.
In December, Google announced major job cuts in its top management positions, affecting 10% of its managerial director-level and vice president roles. CEO Sundar Pichai shared the news during an all-hands meeting, explaining that the layoffs are necessary to align with the company’s shifting business priorities.
