Despite the ongoing wave of layoffs in the tech industry in 2024, there has been a noticeable decrease in the total number of employees being let go compared to the previous year, indicating a potential slowdown in the negative trend. Data from Layoffs.fyi reveals that tech companies have shed 90,916 employees so far this year, with 317 companies leading the layoffs, which is half the figure reported during the same period in 2023. The peak of tech industry job cuts occurred at the end of 2022 and the beginning of 2023, but the trend has been gradually weakening since then. However, 2023 still marked a record number of layoffs in the industry.
In 2023, tech giants like Google, Meta, Microsoft, and Amazon were responsible for almost 263,000 job cuts. This year, the trend seems to be slowing down, with a significant decrease in job cuts reported.
Over the past five months, 330 tech companies have implemented cost-cutting measures, resulting in job cuts nearly three times lower than the same period last year. An analysis by months indicates that around 60% of all job cuts, totaling approximately 50,000, took place in the worst months for tech layoffs in 2024 – January and April.
January witnessed over 31,000 job cuts, less than half of the figure recorded in January 2023. April followed with 22,000 layoffs, slightly more than the previous year. May continued the downsizing trend with 9,654 job cuts, 5,000 fewer than in May 2023.
The transport sector bore the brunt of the layoffs, with 17,000 job cuts, comprising a significant portion of all tech layoffs. The hardware industry and consumer and retail sectors also experienced notable job cuts.
Since the beginning of 2021, tech companies have laid off more than 720,000 employees, underscoring the volatility of the tech industry despite being a driver of innovation and economic growth. These layoffs reflect market dynamics such as shifts in consumer behavior, technological advancements, lack of corporate governance, market research gaps, and economic pressures.
The high number of job cuts has far-reaching consequences, impacting unemployment rates, consumer spending, and the overall labour market. It is crucial for policymakers and industry leaders to take proactive steps to support displaced workers through retraining programs, unemployment benefits, and initiatives to boost job creation. Understanding the causes behind these layoffs is essential for developing sustainable solutions.
The data also underscores the importance of strategic planning and risk management for tech companies to navigate market shifts and prevent massive layoffs. Diversification, investment in emerging technologies, and flexible business models are key strategies to withstand economic fluctuations. Analyzing layoff data is vital for comprehending economic impacts, guiding policy decisions, and building a resilient workforce.
