The year 2024 has come with its fearful wave of tech layoffs as companies try to face the economic crisis while also adopting Artificial Intelligence technology in a super-speedy way. Some of the biggest tech companies have already cut thousands of jobs during this period.
As per the data from Layoffs.fyi more than 60,000 job cuts have been recorded across 254 tech companies so far this year. It is a dramatic escalation of the layoffs this year compared to 2022 and 2023 underlining growing challenges facing the sector.
Amazon has the Highest Tech Layoffs
Which company has seen the highest Tech Layoffs in 2024 and why?
The worst-hit company is the tech giant Amazon. It has probably the biggest layoffs which is over 27,000 jobs since late 2022. This could be around a 10% cut in Amazon’s workforce globally as the company works its way toward streamlining its operations and adjustment to the emerging economic dynamics.
The company laid off thousands of employees in multiple rounds. In April 2024 the company had cut hundreds of roles in its cloud computing division like sales, marketing, and technology.
Reasons behind the Tech Layoff at Amazon
Reasons behind Tech Layoff at Amazon
The reasons contributory to the layoff by Amazon are varied. Similar to many tech firms, the e-commerce giant over-expanded during the COVID-19 pandemic in order to contend with decreasing demand but soon woke-up to the reality of having excessive head-count.
Below are the multifaceted reasons:
1. Overexpansion in Services During Pandemic
Amazon had increased rapidly in terms of expanding its services to cater to surging demand due to the outbreak of COVID-19, but now, with the cooling down of the economy and the slowing pace of consumer spending, the company finds itself having an oversized workforce.
2. Economic Uncertainty:
Like other tech firms, Amazon is feeling the economic problems of rising interest rates and a potential recession. It is under pressure to cut costs and lift profitability,
3. Adoption of AI and automation:
Amazon uses AI and automation to offload part of the job functions, mostly in departments of sales, marketing, and technology. Explaining the company’s future plan, the company said it had plans to reduce headcount in positions it can automate.
What about the other Giant Tech Companies?
While Amazon has been hit the hardest, other major tech companies have also enacted huge layoffs this 2024. Tesla has laid off more than 6,700 employees; Google fired nearly 200 employees from its core teams; and Apple dismissed more than 600 employees after it shut down its EV self-driving project.
Are the Smaller Companies doing Layoffs, too?
Are the smaller companies doing layoffs, too?
It is not just the major companies that are plagued in the tech sector; even the minor companies are getting hurt. For instance, edtech firm Byju’s announced the layoff of almost 500 employees, that is 3% of the total workforce due to a funding crisis coupled with unrest among investors. Equally, domestic ride-hailing app, Ola Cabs, announced the sacking of around 200 people, that is 10% of its staff as a part of the restructuring plan.
Conclusion
Ultimately, what is taking place here in the tech space is seismic turbulence with tens of thousands of jobs lost from major companies down to smaller startups. Amazon appears at the top of this list where layoffs were so devastating that more than a quarter of its global workforce was lost.
Apart from that, AI incorporation and automation have also played a part as the companies aim to replace certain job functions with more efficient technology-driven solutions. This trend is likely to continue but the tech industries struggle through the disruption brought by AI and the need for staying competitive in an increasingly volatile market.
How these layoffs will eventually go on to affect innovation, talent, and the overall tech ecosystem in the longer term is yet to be ascertained while this industry continues on its path of evolution.
