2024 is just two weeks away and already 46 IT and technology companies (including startups) have announced layoffs of over 7,500 employees. Layoffs continue to increase and this may be partly due to the advent of Generative AI (GenAI) that is replacing humans in many tasks.
According to the latest data provided by layoff.fyi, a website dedicated to tracking job cuts in the technology sector, these 46 companies have collectively terminated the employment of 7,528 people as of January 14.
See also: Google: Hundreds of layoffs to reduce costs
In 2022 and 2023, many technology companies laid off more than 425,000 employees worldwide. However, what has attracted the most attention is the case of Frontdesk, an online rental platform, which laid off its entire workforce (200 people) through a short “two-minute Google Meet call.”
Additionally, gaming company Unity revealed that it plans to reduce its workforce by 25%, resulting in approximately 1,800 job cuts in the latest round of layoffs.
Google , and Google Assistant teams. Google says these changes were made to improve efficiency and workflow, as well as to focus on the company's core priorities.
Audible , the audiobook and podcast division of Amazon, is also reducing its workforce by laying off more than 100 employees. The move falls in line with broader job cuts being made by Amazon .
See also: Twitch: It is about to lay off almost 35% of its staff
Similarly, Meta began 2024 by laying off several technical program managers (TPMs), with reports indicating that around 60 such positions are either being consolidated or eliminated.
Veeam Software, a global provider of data management solutions, has reportedly reduced its workforce by laying off 300 employees.
Pixar ,Disney's animation studio, is expected to make job cuts throughout the year.
Finally, Citigroup plans to reduce its workforce by 10% over the next two years.
See also: SpaceX: Accused of illegally firing employees
Layoffs on such a large scale can have significant impacts on the tech job market. The increased availability of workers can lead to increased competition for available jobs, forcing workers to accept lower wages or less attractive working conditions.
Layoffs can then have a psychological impact on employees, increasing uncertainty and fear of job instability. This can lead to reduced productivity and creativity, as employees may be less willing to take risks or invest in new ideas.
Layoffs may also discourage young people from pursuing careers in technology, reducing the talent supply in the future. This could have long-term implications for innovation and growth in the sector.
Finally, layoffs may lead to changes in the structure of the labor market, as companies may seek more efficient ways to perform tasks, such as automation or upgrading existing workers.
Source: me.mashable.com
