Tech Industry Hit by 89,000 Layoffs in 2024

The tech industry has been rocked by a continuing wave of layoffs in 2024, with more than 89,000 jobs eliminated across 302 companies so far this year. From giants like Tesla, Amazon, Google and Microsoft to emerging startups, no part of the industry has been immune to this trend.

According to data from Layoffs.fyi, in January 2024, a total of 19,350 employees were laid off from technology companies in the United States. This trend continued in February with an additional 15,589 layoffs, followed by 7,403 in March and 22,352 in April. In May, the situation continued with more than 9,654 layoffs, with an extensive list of companies announcing drastic measures, ranging from significant cutbacks to the complete closure of operations.

Some examples of this trend include:

May 2024:

• Cue Health closes operations and lays off remaining staff.

• Foursquare lays off 105 employees as part of a "restructuring" operation.

• Lucid Motors cuts about 6% of its workforce, approximately 400 employees, ahead of the launch of its first electric SUV.

• TikTok plans to make large cuts in its global operations and marketing teams, although the number of employees affected has not yet been confirmed.

• Pixar plans to cut about 14% of its staff, affecting about 175 employees, as it redirects its original programming focus from Disney+ to movies.

April 2024:

• Elon Musk announces Tesla additional cuts to its charging team.

• Google announces layoffs in key teams such as Flutter, Dart and Python, although the number of employees affected is not specified.

• Vacasa eliminates 800 employees, representing 13% of its workforce, as part of a restructuring effort.

• Brilliant lays off most of its staff and stops selling its smart home controllers and switches while it searches for a buyer.

• Enovix lays off approximately 170 workers, affecting one-third of its total workforce, in an effort to reduce annual operating costs.

March 2024:

• ChowNow lays off 20% of its workforce after acquiring point-of-sale platform Cuboh.

• Nintendo of America restructures its testing department, leading to the creation of new full-time positions.

• Dell cuts its global workforce by about 6,000 jobs, according to an SEC 10-K filing.

• Synctera makes staff cuts, estimating that about 15% of the company, or 17 people, were affected.

• ShopBack eliminates 195 roles as part of an effort to become more sustainable, according to CEO Henry Chan.

February 2024:

• Fisker plans to lay off 15% of its workforce due to cash problems.

• EA cuts about 5% of its workforce, affecting 670 employees, as it moves away from "developing future licensed IP."

• Bumble lays off approximately 350 employees, representing 30% of its workforce.

• Apple is likely to lay off hundreds of employees who worked on the company's autonomous electric car project.

• Sony lays off 900 employees at its PlayStation unit, affecting 8% of the division's workforce.

January 2024:

• Thinx lays off 95 workers in New York City, according to a filing with the New York Department of Labor.

• Proofpoint lays off about 6% of its global workforce, or 280 employees.

• Wattpad makes another round of layoffs, affecting about 15% of its workforce.

• Block lays off about 1,000 people at Cash App, Foundational and Square Arms.

• PayPal begins company-wide layoffs, with estimates of thousands of employees affected.

The personal effects of these layoffs have been evident in social networks, where employees have shared their discontent with the news. However, this phenomenon contrasts with the national employment situation in the United States, where unemployment rates remain low and the economy continues to generate employment in other sectors, according to data from Statista.

Amid a still robust employment outlook, US layoffs experienced a 7% increase in March, reaching their highest level since January 2023, as reported by El Economista.

Companies largely cite the need to cut costs and restructure as the main reasons behind these layoffs. Although total layoffs in the first quarter of 2024 are down compared to last year, which ended with nearly 250,000 jobs eliminated, according to Layoffs.fyi. 

"Many companies seem to be returning to the "do more with less" approach. While technology continues to lead all sectors so far this year, several sectors, such as energy and industrial manufacturing, are shedding more jobs this year than last year," said Andy Challenger, senior vice president of Challenger, Gray & Christmas.

The technology industry, historically known for its profitability and rapid growth, is undergoing a change in its work culture. According to El Financiero, a focus on job security and exclusive benefits is being replaced by a greater emphasis on efficiency and short-term profitability. This paradigm shift is reflected in the words of CEO Mark Zuckerberg, who advocates a return to a focus more on programming and less on bureaucratic oversight.