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Tesla, Google, Microsoft and Tiktok increase the number of layoffs in the tech industry this year to almost 100,000

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Monday, June 17, 2024, 1:23 p.m.

A more positive sign for the industry, however, is that the pace of layoffs in the technology sector has slowed compared to the same period last year.

The technology industry will see nearly 100,000 layoffs worldwide this year as companies like Tesla, Google and Microsoft continue to cut staff to please their investors.

According to the online tracker layoffs.fyi, more than 98,000 employees have been laid off at 326 companies so far this year.

While layoffs have slowed since 2023, the number of tech workers who have left their jobs this year alone shows the scale of the challenge facing the industry.

Bytedance, the owner of Tiktok, cut 450 jobs last week following the merger of Tiktok Shop with e-commerce company Tokopedia.

Earlier this month, Microsoft cut 1,000 jobs in its mixed reality division. In May, Google cut 100 jobs in its cloud division, while TikTok announced plans to significantly downsize its operations and marketing team, which includes around 1,000 positions.

In early April, the total number of layoffs was 60,000. That number rose sharply a few days later when Tesla announced the biggest wave of layoffs in the tech industry since Covid-19 due to falling demand and price pressure. The company laid off 14,000 employees, or 10 percent of its workforce.

Another notable wave of layoffs involved the elimination of 3,300 jobs at Getir in late April as the company withdrew from its UK and other European markets.

In London, struggling artificial intelligence startup Stability AI cut 20 jobs in April, or about 10 percent of its workforce, and luxury fashion e-commerce platform Farfetch reduced its workforce by 2,000 jobs in February.

One reason for some of these layoffs, according to media analyst Ian Whittaker, is to signal fiscal discipline to investors. “I think that's at least part of the rationale for the cuts at companies like Alphabet, Amazon and Microsoft,” he said recently.

Data: layoffs.fyi

“Given the results, there is no need for cuts, and two years ago it would have been unlikely that they would have made such cuts. But by making them now they are sending a signal that they are staying focused. That pleases investors,” he explained.

Analysts generally agree that layoffs are likely to continue for now, but a more positive sign for the industry is that the pace of layoffs has slowed compared to the same period last year.

In 2023, nearly 1,200 tech companies laid off 263,180 employees, according to layoffs.fyi. Over 214,000 jobs were lost in the first two quarters of this year, compared to 98,000 in the same period this year.