So far in 2024, there have been 176 layoffs at tech companies with 38,003 people being laid off (1,267 people per day). In 2023, there were 1,996 layoffs at tech companies with 428,384 people impacted (1,174 people per day).
In 2023, most of the layoffs were because of overhiring in the Pandemic and tech companies were right-sizing the headcounts, and some microeconomic situations.
And, in early 2024, most people are being laid off because of the integration of Generative AI displacing jobs and with few companies’ economic situations again. The repetitive jobs that can be performed by Artificial Intelligence will be obsolete.
However, Gen AI will create more jobs than it will displace. According to a McKinsey report, less than 5% of jobs will be lost due to AI, and around 60% of jobs will require adaptation to AI, developing new skills to factor in AI to our work, as the tasks we do will change.
In January 2024 several companies including Flipkart, Salesforce, Microsoft, Google, eBay, Amazon, and Bosch have sacked several employees. List of a few companies that sacked employees in January 2024:
Frontdesk laid off the entire staff in 2 minute call
A prop-tech startup company, Frontdesk has laid off around 200 employees which is the entire workforce of the company, over a two-minute Google Meet call.
According to media reports, “Frontdesk was still optimistic about its ability to raise more capital.” The startup had posted on LinkedIn openings for several jobs, including a chief of staff role, just two months ago, The report added.
The layoffs included full-time, part-time workers and contractors and the proptech startup is now on the verge of shutting down.
Xerox to cut 15% of its workforce
Xerox has announced that it will cut 15% of its workforce, or about 3,000 jobs, as it looks to overhaul its executive leadership and global operations. The company has announced a new operating model and organizational structure to further the company’s Reinvention.
Xerox has about 20,500 employees, based on this figure about 3,075 employees will be impacted.
“The evolution of Xerox’s Reinvention aligns our resources in three key areas – improvement and stabilization of our core print business, increased productivity and efficiency through the formation of a new Global Business Services organization, and disciplined execution in revenue diversification,” said Steven Bandrowczak, Chief Executive Officer at Xerox.
Flipkart to layoff 5-7% of workforce soon based on performance
The e-commerce platform, Flipkart will sack 5-7% workforce based on a performance review that will be completed by March-April.
Flipkart, excluding its fashion portal Myntra, currently employs 22,000 employees. The reports also suggested that this is not the first time Flipkart has sacked employees due to annual performance the company has been carrying a similar kind of layoffs for the past two years.
Facebook has reportedly sacked 60 employees, particularly in TPM roles
Meta, the parent company of Facebook has reportedly sacked 60 employees particularly those in Technical Program Manager (TPM) roles.
However, Meta has not officially commented on the layoffs. The company has reported sacked employees in TPM roles that have impacted 60 employees in the company.
Citigroup will be cutting 20,000 jobs
An American multinational investment bank and financial services corporation, Citigroup Inc. has reported a net loss for the fourth quarter of 2023 of $(1.8) billion, or $(1.16) per diluted share, on revenues of $17.4 billion.
Citi CEO Jane Fraser said, “While the fourth quarter was very disappointing due to the impact of notable items, we made substantial progress simplifying Citi and executing our strategy in 2023.”
“We restructured around five core, interconnected businesses to align our organization with our strategy and to provide greater transparency into their performance”, she said.
Moreover, Citigroup is likely to announce more organizational changes. It is expected to cut at least 20,000 jobs over the next two years. The job cuts will save $2.5 billion a year by 2026.
Amazon announces job cuts in Buy with Prime division
E-commerce giant Amazon has reportedly laid off about 5 percent of its employees at its Buy with Prime unit. This will impact nearly 30 employees of the company. Recently, the company sacked several hundred employees from its Twitch live-streaming platform and Audible audiobook unit.
Bosch plans to cut 1,200 jobs by the end of 2026
A leading global supplier of technology and services company, Bosch plans to cut 1,200 jobs by the end of 2026 from its software development division amid a weakened economy and soaring inflation. Moreover, the layoffs at Bosch will impact 950 positions in Germany.
SAP announces Transformation Program that will impact 8,000 jobs
A German multinational software company, SAP has announced its restructuring plan for 2024 that will impact 8000 jobs, 7.4% of SAP’s total workforce.
SAP will implement a company-wide transformation program including restructuring for 2024. In addition, the company is updating its ambition for 2025.
To ensure that SAP’s skill set and resources continue to meet future business needs, the company plans to execute a company-wide restructuring program in 2024.
The majority of the approximately 8,000 affected jobs are expected to be covered by voluntary leave programs and internal re-skilling measures. Moreover, it will be reflecting re-investments into strategic growth areas, SAP expects to exit 2024 at a headcount similar to current levels.
eBay sacks 9% of full-time employees
Unlike other tech companies, an American multinational e-commerce company, eBay has announced a reduction of 9% or approximately 1,000 roles.
While announcing the layoffs the company said, “Despite facing external pressures, like the challenging macroeconomic environment, we know we can be better with the factors we control.”
“While we are making progress against our strategy, our overall headcount and expenses have outpaced the growth of our business”, the
The company added, “Despite facing external pressures, like the challenging macroeconomic environment, we know we can be better with the factors we control. While we are making progress against our strategy, our overall headcount and expenses have outpaced the growth of our business.”
Salesforce to sack 700 employees
The San Francisco cloud computing software company Salesforce is laying off 700 employees across the company in the latest round of layoffs to hit the tech industry.
This round of layoff impacted 1% of its workforce as the company has a total headcount of roughly 70,000 employees. Last year the company also laid off about 10% of its workforce, more than 7,350 employees.
Recently, Ross Harmes, chief of staff said, Salesforce will pause all hiring in technology and product divisions, including in its chat subsidiary Slack.
Microsoft announced that it is laying off 1,900 employees within its video-game divisions this week. While Microsoft is primarily laying off roles at Activision Blizzard, some Xbox and ZeniMax employees will also be impacted by the cuts.
These layoffs are approximately 8 percent of the company’s 22,000 gaming workforce. Microsoft has recently acquired Activision for $69 billion in a deal that concluded late last year.