The echoes of 2023’s economic tumult continue to reverberate through the tech industry, as 48 companies have already parted ways with 7,528 employees by January 15, according to the layoff-tracking website Layoffs.fyi. This disheartening trend suggests that the tech sector may face another challenging year, following the significant job cuts witnessed in the previous year.
Big industry heavyweights, such as Google and Amazon, are planning significant job layoffs in 2024 as part of their cost-cutting efforts. Over 260,000 employees were laid off by more than 1,150 tech businesses last year alone, painting a bleak picture of the industry’s job environment.
The year 2024 wasted little time in striking hard, with online rental firm Frontdesk taking the lead. In a surprising decision, the company laid off its entire 200-person crew in a “two-minute Google call.”
Various big companies have already announced layoffs in the first weeks of 2024:
Google, part of Alphabet, Google has cut off hundreds of employees from its digital assistant, hardware, and engineering departments. According to a corresponding for Google, “A few teams are continuing to make these kinds of managerial changes, which include some role eliminations worldwide.”
Amazon Audible: Audible, a digital audiobook and podcast provider, is cutting about 5% of its personnel. Despite CEO Bob Carrigan’s assurances to staff about the company’s general stability, he acknowledged the obstacles created by a “increasingly challenging landscape.”
Amazon Prime Video: Citing an internal memo, Amazon reported the layoff of several hundred employees in its streaming and studio operations. The affected employees at Prime Video and Amazon MGM Studios in the Americas are preparing for change.
Twitch by Amazon: Twitch’s the popular streaming site, is downsizing its workforce by 35%, affecting around 500 employees. This move comes on the heels of a previous round of layoffs in March 2023, when over 400 staff were sent off due to unfulfilled user and revenue growth objectives.
Harmony: The social chat and messaging firm Discord announced plans to reduce 17% of its workforce, affecting around 170 positions.
Unity Software: Videogame software developer Unity Software is laying off around 25% of its workforce, or 1,800 employees. Jim Whitehurst, interim CEO, described the move as a strategic decision to focus on the core business for long-term growth and profitability.
Xerox: IT company Xerox announced a 15% cut in its staff, affecting approximately 3,000 employees. The restructure is to implement a new organisational structure and operating model, with layoffs beginning in the first quarter of 2024.
The tragic news from Frontdesk highlights the hard realities that many in the digital business endure.The sudden and widespread layoffs serve as a harsh reminder of the problems that both individuals and companies will face in the fast changing tech industry. As we head into 2024, the sector remains unclear, with each announcement emphasising the importance of resilience and adaptability in the face of constant change.