Tech Layoffs: Job Cut Wave Shows Signs Of Stabilisation As Numbers Fall In October

October’s figures indicate a further decline, marking one of the lowest points for layoffs since 2023 and reinforcing the trend established in previous months

Social media platform TikTok has also joined the layoff trend, cutting hundreds of jobs from its global workforce, primarily in Malaysia

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After a wave of layoffs earlier this year, the pace of job cuts in the tech industry has steadily declined in recent months. In September, 35 tech companies laid off approximately 3,941 employees. This trend continued into October, when 30 companies reduced their workforce by 3,080 jobs, according to data from layoffs.fyi.

October’s figures indicate a further decline, marking one of the lowest points for layoffs since 2023 and reinforcing the trend established in previous months. Notably, four tech firms each cut over 400 positions, while another four trimmed around 300 jobs each. Despite these significant cuts, overall layoff numbers for October were the lowest of the year in both total employees affected and companies involved, as reported by The Indian Express.

This reduction reflects a broader stabilisation in the industry following the peak layoffs observed earlier in the year, particularly in January, February, and April. Tech companies across various sectors, including cryptocurrency, consumer services, finance, and healthcare, were impacted in October.

Among the major players in the tech industry, Dropbox, the US-based cloud storage and file hosting company, announced a significant reduction of 527 employees in October, translating to a 20 per cent cut in its workforce. CEO Drew Houston characterised this move as part of a "transitional period" aimed at streamlining operations in areas identified as "over-invested" and creating a leaner team structure.

In a similar vein, cryptocurrency exchange Kraken laid off approximately 400 employees, or 15 per cent of its staff, as part of a corporate restructuring initiative. The company also appointed a co-chief executive to facilitate these organisational changes.

Social media platform TikTok has also joined the layoff trend, cutting hundreds of jobs from its global workforce, primarily in Malaysia. This shift has been attributed to a growing reliance on AI for content moderation, diminishing the need for certain roles. Initial reports suggested over 700 job losses, but ByteDance, TikTok's parent company, later revised this number to approximately 500.

The ongoing layoffs in the cryptocurrency and finance sectors reflect persistent challenges amid market volatility. Companies like Lending Club, a digital marketplace bank, and fintech firm Karat Financial have reportedly reduced staff due to continued economic pressures. Additionally, the healthcare sector has experienced cuts, with staffing platforms like Nomad Health and healthcare tech company Carbon Health also laying off employees.

Throughout the year, job cuts have primarily targeted traditional tech fields such as software, hardware, and social media, although some fintech and AI roles have also been affected. This trend is driven mainly by the increasing adoption of AI and automation tools, which have streamlined operations and led to redundancies in certain positions.

By August, the tech industry had already seen over 136,000 job losses across 422 companies, with major layoffs from industry giants like Intel, IBM, and Cisco, as well as smaller startups.