After two years of massive layoffs in IT and Tech companies, job cuts yet continue and are expected to carry on further in 2024.
In the dynamic world of technology, where innovation is constant and rapid, businesses are continuously adapting to stay competitive. Unfortunately, this adaptability often comes at the expense of job stability.
As of 2024, the continued job reductions has become apparent that tech companies will continue to face challenges that could result in further job reductions within the industry.
Major Layoffs in 2024
- Cisco announced cuts of 5% of the workforce
- DocuSign laid off 6% of the workforce in the restructuring
- Microsoft axes 1,900 workers in its gaming division
- SAP announces $2.2B restructuring that’ll impact 8,000 jobs
- Bay slashes 1,000 jobs as expenses rise
- Google to replace part of ad sales team with AI
- Alphabet lays off hundreds from engineering, hardware, and digital assistant teams
Automation and artificial intelligence (AI) technologies are increasingly replacing manual and repetitive tasks previously performed by human employees. This trend is expected to accelerate in the coming years with improved machine learning algorithms and increased adoption of AI-driven systems.
In a recent analysis, according to the IMF analysis the possible consequences of AI on the worldwide job market. Within advanced economies, around 60 percent of job roles could be influenced by AI. Approximately half of these exposed jobs have the potential to experience productivity enhancements through AI integration.
However, for the remaining half, AI applications may take over critical tasks currently carried out by humans, resulting in reduced labor demand and potentially leading to lower wages and decreased hiring. In extreme cases, certain job positions may even cease to exist altogether.
In the past, automation and IT primarily affected repetitive tasks. Consequently, advanced economies carry higher risks from AI, but also have more prospects to harness its advantages when compared to emerging markets and developing economies.
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. So far in 2024, there have been 312 layoffs at tech companies with 60,776 people impacted (1,105 people per day). Further details can be read by clicking here.
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