Tech Layoffs: 42% Drop In Job Cuts In 2024 As Firms Work Towards Stabilisation

Tech Layoffs in 2024: In April, the tech industry experienced its second wave of significant layoffs, with Tesla announcing it would reduce around 15 per cent of its workforce

The majority of layoffs this year were part of restructuring efforts by tech companies aiming to navigate the aftermath of the 2023 economic downturn

Source : ABPLIVE AI

Tech Layoffs in 2024: The tech industry made a strong recovery in 2024 after enduring significant losses in 2023, with tracking sites noting a 42 per cent reduction in layoffs compared to the previous year. Although the wave of layoffs from 2023 continued into early 2024, the overall number of job cuts this year was notably lower, with the industry shedding just over 151,000 positions, according to a report from The Washington Times.

Even though some of the tech giants laid off several employees this year the number is still less as compared to 2023.

The majority of layoffs this year were part of restructuring efforts by tech companies aiming to navigate the aftermath of the 2023 economic downturn. Intel started the year by announcing plans to cut around 15 per cent of its workforce in January, followed by smaller layoffs from companies such as Microsoft, YouTube, TikTok, and Riot Games later in the month.

In April, the tech industry experienced its second wave of significant layoffs, with Tesla announcing it would reduce around 15 per cent of its workforce. The month saw over 22,000 jobs cut across the sector.

After this, there was a brief lull in major layoffs, with only a few companies announcing large reductions by July. However, August saw a spike in job cuts, with more than 26,000 tech workers losing their jobs as major players like Meta revealed substantial restructuring plans. Despite the busy months of April and August, neither came close to the level of layoffs seen in January.

The widespread layoffs in 2023 were driven by high interest rates and reduced consumer spending. Tech companies often explained these cuts as necessary adjustments to navigate economic challenges. Additionally, Elon Musk's drastic reduction of nearly 80 per cent of Twitter’s staff likely influenced other tech leaders to follow suit and trim their own workforces.