It has been a year and then some of tech’s day of reckoning, as organisations big and small rethink their workforce strategies. According to data from Layoffs.fyi, in the year 2023, a total of 2.62 lakh people were removed from their jobs globally across 1186 tech companies. That figure is more than 50% higher than last year and it is a trend that is showing no sign of abating. In the first month of the year 2024, a total of 13,240 people were removed from 72 tech giants.
As market conditions remain lethargic and signs of a revival seem to be muted, the sentiment around a tech rebound is cautious at best, explaining why these layoffs are happening seemingly en masse.
Tech giants, including Google, Amazon, Meta, and others, have collectively removed over 10,000 people from jobs in the early months of 2024, signaling a challenging start for the sector following a difficult 2023. Here’s a round-up of just some of those stories and numbers, a sobering reminder for talent that the outlook remains bleak, and that the dog days of the funding winter and sluggish markets are far from behind us.
eBay
E-commerce giant eBay is set to lay off 1,000 employees, constituting 9% of its full-time workforce, as part of a broader trend in the tech industry. eBay CEO Jamie Iannone stated in an email to employees that while the company is making progress against its strategy, overall headcount and expenses have outpaced business growth. Those statements ring hollow in light of the company reportedly making $1.3 billion in profits last quarter.
He emphasized the need for organisational changes to align and consolidate certain teams for an improved end-to-end experience. Additionally, the company intends to terminate an undisclosed number of contract workers in the coming months.
Indeed, the layoff wave in the tech industry extends beyond eBay, with notable companies making significant workforce reductions.
Google
Google initiated layoffs in various units, affecting approximately 1,000 employees. This included staff in its Voice Assistant unit, as well as hundreds in the hardware team responsible for Pixel, Nest, and Fitbit. Furthermore, Google made workforce adjustments in its augmented reality team and central engineering team. What’s more, YouTube, Google’s video platform, is looking to lay off around 100 employees, according to reports.
These layoffs might seem like a miniscule number compared to the 12,000 or so workers laid off last year at this time, but the grey clouds still loom large over tech talent. Google CEO Sundar Pichai warned of additional job cuts in the coming months to simplify execution and drive velocity, while expressing regret
for the layoffs and offered them severance pay and the opportunity to apply for other roles within the company.
Amazon
Amazon is planning layoffs in Prime Video and MGM Studios, with around 30 employees affected. Additionally, Audible, Amazon’s audiobook and podcast service, is laying off around 5% of its workforce (about 100 employees). Furthermore, Amazon’s popular streaming platform Twitch, laid off 35% of its staff (roughly 500 employees) amid concerns about profitability and executive departures.
The company stated that the job cuts were a result of a comprehensive evaluation of its operations, which identified areas for enhancing efficiency and customer satisfaction. Amazon has also provided severance packages to those impacted and offered them the opportunity to apply for other positions within the organisation.
Significantly, these layoffs coincide with the implementation of a strict policy requiring employees to work from the office for at least three days a week. Reports indicate that Amazon is imposing penalties on employees who fail to adhere to this policy, including lower performance ratings and blocked career advancement opportunities. Some employees perceive this as a tactic by Amazon to reduce its workforce without directly terminating individuals, suggesting that the company is fostering a hostile work environment to encourage voluntary resignations.
Humane
The Sam Altman-backed startup Humane laid off 4% of its staff (10 employees) ahead of the launch of its $699 screenless AI pin, a wearable device that packs Ai capabilities in a tiny form factor alongside sensors and a projector that beams information onto any surface.
“As we begin this new chapter of Humane, going from stealth to customer facing, we are making some changes to best prepare us for continued growth,” said CEO and co-founder Bethany Bongiorno in a LinkedIn post. “These evolutions of growth can sadly also mean making difficult decisions for some, in this case we want to extend our sincere gratitude to 10 members of the team who we’ve parted ways with at Humane.”
In addition to these changes, long-time CTO Patrick Gates would be transitioning into the role of an Advisor to spend more time with family.
Clearly, in a time where many companies are struggling with ensuring profitability in a challenging economic climate, these layoff announcements are not going to go away any time soon, and one can only hope that the industry can shake off this period of stupor soon and awaken to a better tomorrow.
