The wave of layoffs in the tech industry shows no signs of abating as 2024 progresses. An independent tracking service, Layoffs.fyi, reports that over 60,000 jobs have been cut across 254 companies this year, continuing a trend that began in 2022 and escalated in 2023.
Major players such as Tesla, Amazon, Google, TikTok, Snap, and Microsoft have all made significant workforce reductions in the early months of this year.
This ongoing trend is not limited to large corporations; numerous smaller startups have also been affected, with some ceasing operations entirely.
The layoffs reflect a broader shift in the industry as companies adapt to economic pressures and increasingly embrace AI and automation technologies, leading to concerns about the future of jobs that were once considered secure.
In August alone, approximately 26,024 employees were laid off, following 34,107 in January and 22,423 in April, among other significant cuts throughout the year. Here’s a breakdown of the layoffs by month in 2024:
- January: 34,107 employees
- February: 15,639 employees
- March: 7,403 employees
- April: 22,423 employees
- May: 11,011 employees
- June: 10,083 employees
- July: 9,051 employees
- August: 26,024 employees
The persistent layoffs raise critical questions about the future of innovation within the tech sector. While businesses may look to streamline operations and reduce costs, the human impact of these layoffs is profound.
Thousands of workers are left navigating an uncertain job market, with many seeking new opportunities in an industry that is rapidly changing.
As the year progresses, the implications of these workforce reductions will become clearer. While some experts argue that the integration of AI and automation could drive future innovations, others caution that the loss of skilled employees may stifle creativity and hinder the growth of new ideas.
The Layoff Landscape
In August 2024, Intel sent shockwaves through the tech industry by announcing a 15% reduction in its global workforce, equating to approximately 15,000 jobs.
The news was quickly followed by Cisco Systems, which revealed plans to lay off 7% of its employees, marking its second round of cuts this year as it pivots towards rapidly growing sectors like artificial intelligence and cyber security. Earlier in February 2024, Cisco had already let go of over 4,000 workers.
These layoffs are part of a broader trend. According to Layoffs.fyi, 384 tech companies have collectively laid off over 124,000 employees in 2024, adding to the staggering total of 428,449 tech workers who lost their jobs in 2022 and 2023.
While the overall labor market has shown resilience, the cuts in the tech sector are particularly pronounced, given the scale of these companies. Even small percentage reductions can result in thousands of lives disrupted.
The Human Impact
The consequences of these layoffs are deeply personal. Behind every statistic lies an individual—often a friend or colleague—facing financial uncertainty, family responsibilities, and looming bills.
Many of those affected are seasoned professionals with years of experience, now thrust into an unpredictable job market.
The wave of layoffs echoes the dot-com bust of the early 2000s, but today’s tech workers tend to be older and more entrenched in their careers. The psychological and financial strain can be overwhelming..
Many companies have kept employees in the dark for weeks or even months, creating an atmosphere of fear and uncertainty.
Despite claims that employees are their greatest asset, companies often make workforce reductions first in times of crisis—even while posting record profits.
For instance, Microsoft laid off 1,900 workers just days before announcing a 17.6% increase in revenue to $62 billion, while Amazon dismissed a thousand employees despite a 14% rise in revenue to $170 billion.
Looking Ahead
The current wave of layoffs raises crucial questions about the future of work in the tech industry. Will companies continue to prioritise AI investments at the expense of human workers?
Are we witnessing a return to previous growth patterns, or are we entering a new era focused on consolidation and efficiency? Most importantly, how can companies better support their employees during these tumultuous times?
As we face these challenges, it’s evident that the tech industry stands at a crossroads. The choices made today will shape the future of the industry—and the lives of millions of workers—for years to come.
For those wanting to stay updated on the ongoing situation, a comprehensive list of known layoffs in tech for 2024 will be regularly updated. Tips regarding layoffs can be submitted anonymously for inclusion in these updates.
