In 2024, the tech industry is facing a wave of layoffs as companies grapple with economic uncertainty and shifting market dynamics. Tech giants like Amazon, Alphabet, Microsoft, and IBM are among the many companies announcing significant job cuts, impacting thousands of employees across the United States and Canada.
Amazon, a behemoth in e-commerce and cloud services, has implemented layoffs across multiple divisions. Less than 5% of employees at its Buy with Prime division, 5% at Audible, and a staggering 35% at Twitch have been affected. Additionally, layoffs have hit Amazon Web Services (AWS), healthcare subsidiaries like One Medical and Amazon Pharmacy, streaming and studio operations, and the physical stores technology team. The restructuring at Amazon reflects the company’s efforts to streamline operations and focus on core business areas.
Alphabet, the parent company of Google, has also initiated significant job reductions. The company cut positions at its X Lab, responsible for developing new technologies, and made hundreds of cuts across its advertising sales teams and hardware divisions, including Pixel, Nest, and Fitbit products. Most of the company’s augmented reality team also faced layoffs, signaling a shift in priorities for the tech giant.
Microsoft announced the elimination of approximately 1,900 jobs in its gaming divisions, including Activision Blizzard and Xbox, while IBM revealed plans to lay off some employees while ramping up hiring in AI-focused roles. Intel is cutting over 15% of its workforce, about 17,500 jobs, as it refocuses on its struggling manufacturing business. eBay, Unity Software, DocuSign, Snap, Salesforce, and Cisco are among the other tech companies announcing significant layoffs, reflecting the broader trend in the industry.
In the automotive sector, Tesla is set to lay off more than 10% of its global workforce as it faces declining sales amid price wars in the electric vehicle market. Financial services firms like PayPal Holdings, Block Inc., and Citigroup are also planning major job reductions, with PayPal laying off 2,500 employees, Block Inc. reducing its workforce, and Citigroup cutting 20,000 jobs over the next two years.
Retail giants like Walmart, Estee Lauder, Wayfair, Macy’s, Levi Strauss & Co, and Hershey’s are feeling the pressure as consumer demand shifts. Nike plans to eliminate more than 1,600 jobs as part of a cost-saving initiative, while companies in the health, manufacturing, and logistics sectors are also implementing targeted reductions in their workforces.
Overall, the wave of layoffs in 2024 reflects the ongoing challenges faced by companies across various industries as they navigate a changing economic landscape. As tech giants and other corporations make tough decisions to streamline operations and adapt to market conditions, the impact on employees and the broader economy remains a significant concern.