In 2024, the tech industry will undergo massive layoffs, with more than 130,000 jobs cut from 457 companies. Industry giants such as Tesla, Amazon, and Google are among the top recipients of these cuts, as are hundreds of smaller startups.
Key factors behind these cuts are automation and the growth of AI, underscoring the double impact of innovation on employment and human costs of restructuring workforces.
Let's take a look at the tech layoffs of 2024, month after month.
Lightspeed Commerce, on December 2, 2024, announced it would be laying off 200 employees as part of a strategic business review. The Canadian commerce platform aims to prioritize key growth areas, streamline operations, and redefine its structure. The ongoing strategic review remains unaffected.
November 2024 saw widespread layoffs across the tech industry. After acquiring Tegus, AlphaSense laid off 150 employees, 8% of its workforce.
Ola Electric cut 500 employees, more than 10% of its staff, to enhance profitability. LinkedIn axed 202 roles, mainly in engineering and customer support.
Similarly, Headspace cut 13% of its workforce and moved therapists to part-time, while Hopper cut 10% of its workforce, affecting 60-65 employees in layoffs.
Other significant cuts were made by Freshworks, which cut 660 employees globally, or 13% of its workforce, and 23andMe, which cut 40% of its staff as it struggles financially.
Stoa and Bowery Farming shut down completely, which is indicative of the difficult environment for tech companies.
In October 2024, tech companies began another spate of layoffs characterized by wide-scale firings and company closings.
Some of the cuts were severe for companies, including Dropbox, which announced it had cut 528 workers, or 20% of its workforce. Boeing is eliminating 17,000 positions, or 10% of its total workforce, partly due to losses and in response to strikes.
Meta reportedly did not provide any data, but it did fire some people across several teams, working towards strategic goals. The company TikTok started adopting AI-based content moderation, but it laid hundreds, mainly from Malaysia.
Closures also dominated the month, with CapWay ceasing operations, Eaze laying off 500 employees as it wound down, and Motif FoodWorks closing after a legal battle.
Funding struggles forced Nori to shut down as well. Restructuring efforts saw Coursera reduce 10% of its staff, Consensys cut 20%, and Upwork eliminate 21% to save $60 million.
These developments expose some issues in the tech industry and, more so, by a market, shift of business practice, and cutting down expenses in the sector.
Various prominent companies were among the main layoffs in August 2024. Intel announced a massive cut, axing 15,000 employees, or 15% of its workforce, citing lower-than-expected revenues despite AI market potential.
While Apple let go of around 100 staff in its digital services group, impacting teams in Books and News. Cisco, which had already laid off thousands in February, was said to be preparing for thousands more cuts. Closures and strategic pivots also marked the month.
Tally, with 183 employees, closed its doors because of financial distress, and Mobius, a Kenya-based SUV manufacturer, stopped producing vehicles due to tax increases.
READY Robotics shut down its entire operation and sold its equipment in an auction. Restructuring actions hit GoPro, which axed 139 employees, or 15% of its workforce, and LegalZoom, which reduced its global staff by 15%.
The layoffs point to persistent challenges in the tech sector, such as declining revenues, cost-cutting pressures, and shifting priorities, including AI investments.
The tech sector had a more challenging July with a few large layoffs and shutdowns. Intuit cut 1,800 of its employees, or 10% of its workforce, said to be due to performance issues and not cost-cutting reasons.
UKG laid off 2,200, or 14% of the workforce, to concentrate on products, and UiPath, currently restructuring, cut its workforce by 10%, impacting 420 employees.
Similarly, Unacademy laid off 250 employees as in-person schooling resumed in India. The month also saw closures and strategic pivots.
Koo ceased operations after failed acquisition talks with Dailyhunt, and Sightful cut a third of its workforce to focus on software development.
Pocket FM eliminated nearly 200 U.S. writing roles, relying on AI for content creation. Upside Foods, struggling with declining VC funding, let go of 26 employees.
Amid restructuring, Salesforce cut 300 employees from its workforce, and OpenText planned to eliminate 1,200 jobs, or 2% of its staff, to save money.
Kaspersky pulled out of the U.S. market, eliminating dozens of jobs after the government-imposed restrictions. The layoffs are part of the overall tech market volatility.
Layoffs in June 2024 affected various sectors as companies dealt with restructuring, automation, and financial difficulties.
Notable cuts came from tech giants like Google and Microsoft, which laid off workers in their Cloud divisions, particularly within Azure at Microsoft and Google's sustainability, consulting, and partner engineering teams.
Some other major cuts included Chegg's workforce reduction of 23%, StackPath's closure, and Running Tide's shutdown, as it had raised more than $50 million since 2017.
The EdTech segment was hit hard, particularly with Care/of letting go of 143 employees because of fund losses, while Chegg’s reduction highlights ongoing struggles in online learning.
It wasn't all smooth sailing for startups and unicorns. Copia Global, too, went through layoffs, with the latter sacking more than 1,000 employees. Other small-scale cuts were observed in other companies, including Flutterwave, Rapyd, and MoonPay. These companies are trying to cut costs and concentrate their efforts on core functions.
The enterprise and e-commerce sectors were not immune either, with companies like Pagaya, RealPage, and Wex implementing workforce reductions to streamline operations.
Revel switched to the gig worker model and laid off more than 1,000 drivers, while eBay also cut jobs in Israel as part of its worldwide restructuring.
This series of layoffs indicates a volatile state of the tech and startup ecosystems, as many businesses seek efficiency and respond to economic challenges.
In May 2024, massive layoffs were made across the tech sector as part of restructuring and cost-cutting measures.
Gro Intelligence shut down after cutting 60% of its staff earlier in the year, while Cue Health and Mainvest also closed operations. Lucid Motors, Fisker, and Peloton each laid off hundreds of employees to stabilize their businesses, with Peloton’s CEO stepping down.
Gro Intelligence shut down after cutting 60% of its staff earlier in the year; Cue Health and Mainvest also shut down operations. Lucid Motors, Fisker, and Peloton each laid off hundreds of employees to stabilize their businesses.
Other companies, including Foursquare, TikTok, and Pixar, slimmed down their operations or refocused their strategies by making cuts.
In the startup world, Replit, SeekOut, and Gopuff cut staff sizes to get profit-oriented; the latter is set to become cash-flow positive by 2024.
In this wave of downsizing, Motional, Sprinklr, and Walnut were among the companies cutting their staff. The massive redundancies by most companies indicate continuous financial pressure from tech companies as they adapt to changing markets and business conditions.
Several firms in the sectors have reduced their staff in April 2024 with major reductions and restructuring.
Tesla was one of the companies that downsized the charging department and other international workers by more than 10% of employees.
Google also laid off staff across its key teams, including Flutter, Dart, and Python, though the exact number was unclear.
Fisker, True Anomaly, and Rivian also reduced their headcounts in efforts to preserve cash and maximize efficiency.
Major startups like Getir and Bolt.Earth shut down or restructured, sending thousands to the streets.
Other companies include Nike, Expedia, and Hinge Health, which are cutting jobs to restructure operations or in anticipation of growth in Hinge Health’s IPO plans. Furthermore, Apple canceled its electric car program, axing 614 jobs, and AWS and Byju's downsized.
Mass layoffs are testimonies to the ongoing battles within the industries; firms had been focusing on cost-cutting and optimizing operations during times of economic uncertainty.
In March 2024, several companies in different industries announced mass layoffs.
The biggest conglomerate in India, Reliance, cut over 42,000 employees from the books, which represented 11% of its workforce. Moreover, 143,000 employees opted for voluntary separations.
Other companies, like Dell and Synctera, reduced their workforces. Dell reduced its workforce by 6,000, and Synctera decreased its workforce by 15%.
ChowNow and ShopBack had significant layoffs at the same time, cutting 20% and 25% of their workforce, respectively.
Additionally, companies in the tech and startup sectors also underwent restructuring, such as Airmeet and Chipper Cash, both eliminating 20% of their teams.
IBM and Textio also slimmed down as part of a strategic overhaul. IBM is focusing on replacing jobs with AI.
Other closures involved Phantom Auto and Project Ronin, the latter of which ceased all operations. Layoffs like these are part of the continued restructuring that companies have been undergoing because of economic pressure and the quest for operational efficiency.
Some of the biggest companies in various industries announced massive layoffs in February 2024 due to restructuring and cost-cutting.
Fisker, which was facing some cash flow issues, was going to axe 15% of its workers. Bumble axed 30% of its staff, or about 350 jobs.
EA, Sony and Apple also released numbers: EA cut 5% of its workforce—670 employees—and Sony got rid of 900 of the people working on the PlayStation. In contrast, Apple cut hundreds from its autonomous car initiative.
Following that were companies in the technology and electric vehicle industries, such as Rivian, Meati Foods, and Cisco, which all took cutbacks, including personnel reductions, to ensure efficient and viable operations.
Notable layoffs also took place at Expedia (1,500 employees), Toast (550 employees), and Instacart (250 employees), with each company restructuring to improve efficiency.
Additionally, companies like Grammarly, Snap, and DocuSign trimmed their workforces to align with their evolving business strategies. This wave of layoffs highlights the ongoing pressures faced by organizations in multiple sectors to adapt to challenging market conditions.
In January 2024, several large companies announced significant layoffs as they struggled financially and adjusted to new market conditions.
Block laid off about 1,000 employees across its Cash App, Square, and foundational arms, while PayPal initiated layoffs that could affect thousands.
Wattpad also laid off 15% of its workforce, while iRobot cut its staff by a third after Amazon's failed acquisition attempt. Salesforce and Swiggy have also followed the same path, cutting hundreds of jobs.
In the tech space, Brex, Vroom, and Wayfair cut costs, sending home 20%, 90%, and 13% of their employees, respectively.
Discord also reduced 17% of its staff, while Riot Games cut 11% to focus on fewer, more impactful projects. Additionally, Amazon reported multiple rounds of layoffs, including at Prime Video, Twitch, and MGM Studios, reflecting a broader trend in the industry.
These layoffs were mainly strategic shifts, restructuring efforts, and financial adjustments to smooth operations, reduce costs, and ensure long-term competitiveness.
The tech layoffs in 2024 reflect the sector's response to market challenges, automation, and strategic changes. Companies like Amazon, Google, and Tesla have implemented significant cutbacks in their efforts to streamline operations and enhance profitability. These layoffs highlight the need for a balanced alignment between innovation and workforce effectiveness.
The human cost is evident as thousands face job insecurity. While companies prioritize growth, they must also consider the broader social and economic consequences for the affected employees. These layoffs indicate ongoing restructuring driven by economic and technological shifts, prompting businesses to reflect on the long-term impact on both their workforce and society as a whole.