Tech layoffs reach highest level since 2022 amid market turmoil
The tech industry is facing a wave of layoffs as companies struggle to cope with the volatile market conditions and rising costs. According to a report by Layoffs.fyi, a website that tracks tech layoffs, the first quarter of 2024 saw 166,004 tech workers lose their jobs, the highest number since the third quarter of 2022, when 277,629 layoffs were announced.
The report, which covers layoffs from 85 tech companies, shows that January was the worst month, with 89,514 layoffs, followed by February with 46,490 and March with 30,000. The sectors that were hit the hardest include e-commerce, gaming, fintech, and cloud computing.
Some of the notable companies that announced layoffs in Q1 2024 include:
- SAP: The German software giant said it would cut 8,000 jobs, or 6% of its global workforce, as part of a restructuring plan to focus on cloud and AI.
- Meta: The social media behemoth, formerly known as Facebook, said it would lay off 7,000 workers, or 5% of its staff, as it faces regulatory scrutiny, user backlash, and competition from rivals like TikTok and Snap.
- Amazon: The e-commerce titan said it would slash 6,000 jobs, or 2% of its workforce, across its Prime Video, MGM Studios, Twitch, and Audible divisions, as it streamlines its entertainment offerings and invests in new areas like healthcare and space.
- Microsoft: The software giant said it would eliminate 1,900 jobs, or 1% of its staff, in its gaming division, as it consolidates its studios and shifts to cloud-based gaming services.
The report attributes the surge in tech layoffs to several factors, such as the inflationary pressures, the interest rate hikes, the supply chain disruptions, the labor shortages, the cybersecurity threats, and the geopolitical tensions that have roiled the global economy and the tech sector in particular.
Read More:Â How Edge Computing is Transforming AI and IoT
The report also notes that the tech layoffs come at a time when the industry is enjoying record-high valuations and profits, as the pandemic has accelerated the digital transformation and increased the demand for tech products and services. However, the report warns that the tech sector may face more challenges and uncertainties ahead, as the Covid-19 variants, the antitrust regulations, the social responsibility issues, and the talent wars pose new risks and opportunities for the industry.
Read More:Â Google and Samsung to Offer Free AI Upgrade for Android Users
