In 2024, the tech industry was expected to enter a phase of recovery after two years of massive layoffs. However, despite early signs of improvement, the industry continued to face challenges, resulting in further job cuts. This article provides an updated timeline of notable tech layoffs in 2024 and explores the reasons behind the turmoil in the Big Tech industry.
Global IT Spending on the Rise
Before diving into the details of the layoffs, it’s essential to understand the broader context of the tech industry. According to Gartner estimates, global IT spending was projected to increase by 8% in 2024, surpassing $5.1 trillion. This growth indicated a potential recovery for the industry after a turbulent period.
The Hiring Binge and Revenue Declines
During the pandemic, Big Tech companies experienced a hiring binge to meet the rising demand for technology products and services. The surge in remote work and e-commerce led to increased investments in tech infrastructure. However, as the pandemic situation stabilized, these companies faced revenue declines, resulting in the need to restructure and downsize their workforce.
Notable Layoffs in 2024
Here is a chronological overview of some of the most significant tech layoffs in 2024:
January 2024: Google’s Ad Sales Team and Engineering, Hardware, and Digital Assistant Teams Affected
Google kicked off the year with layoffs in various departments. The ad sales team lost several hundred staff, part of the company’s move to automate certain job functions with machine learning. Additionally, hundreds of employees were laid off from the engineering, hardware, and digital assistant teams. These layoffs were an extension of the downsizing measures that began in 2023 when Google’s parent company, Alphabet, reduced its workforce by 6%.
January 2024: Alphabet Consolidates Hardware Teams and Lays Off Hundreds
Alphabet, the parent company of Google, announced layoffs in several teams responsible for hardware products, including Fitbit wearables and Pixel smartphones. The reorganization aimed to consolidate different teams under a single unit to enhance efficiency. The departure of Fitbit co-founders James Park and Eric Friedman accompanied these changes.
December 2023: Twilio Implements Third Round of Layoffs
Twilio, a cloud communications company, underwent its third significant workforce reduction in a year. Around 300-400 workers, primarily in the sales teams for contact center software and consumer data products, were affected. The layoffs were necessary to optimize the company’s technology, data, and analytics business for future growth.
December 2023: Broadcom Lays Off Over 1,200 VMware Employees
After Broadcom’s acquisition of VMware, the company laid off 1,267 employees. The affected employees, mostly based in VMware’s Palo Alto offices, faced uncertain prospects as further job cuts were anticipated. These layoffs were seen as a refocusing of the company’s efforts and a strategic move to align its priorities.
November 2023: Amazon Cuts Jobs at Alexa Unit to Focus on Generative AI
Amazon announced layoffs of several hundred workers in its Alexa division as part of a shift in focus to generative AI. The company reallocated its efforts to align with its business priorities and meet customer demands. These layoffs followed a series of job cuts that affected 18,000 Amazon employees at the start of 2023.
October 2023: Splunk Restructures and Cuts Workforce
Splunk, a network management and visualization vendor, announced a global restructuring that resulted in the layoff of approximately 560 employees. The company cited an unpredictable macro environment as the reason behind these job cuts. Splunk aimed to align its resources and operating structure to sustain growth and profitability.
October 2023: Nokia Cuts Jobs Amid Declining Profits
Telecom giant Nokia announced plans to cut up to 14,000 jobs in response to the slowing demand for 5G equipment. The company implemented cost-cutting measures to save between $842 million and $1.2 billion by 2026. Nokia aimed to salvage falling profits and adapt to the changing market conditions.
October 2023: Stack Overflow Lays Off Employees and Shifts Focus
Stack Overflow, a developer-focused portal, laid off nearly a third of its workforce. The downsizing affected go-to-market and support teams, reflecting the company’s strategy to prioritize its products and move toward profitability. Stack Overflow aimed to navigate the uncertain macroeconomic conditions while focusing on its core offerings.
October 2023: Qualcomm Cuts Over 1,200 Employees
Qualcomm, a leading chipmaking giant, announced layoffs affecting 1,258 employees in its California offices. The job cuts impacted various roles, including engineers, analysts, software developers, and employees in finance, legal, and human resources. These reductions were a response to the company’s recent financial struggles, with declining revenue and net income.
October 2023: Meta Lays Off Staffers in Facebook Agile Silicon Team
Meta, the parent company of Facebook, laid off employees from its metaverse custom silicon unit, specifically affecting Facebook’s Agile Silicon Team (FAST). The layoffs impacted nearly 600 employees and coincided with the release of Meta’s Quest 3 mixed reality headsets. The restructuring aimed to streamline operations and align resources with the company’s strategic goals.
September 2023: Airtable Implements Layoffs for a Second Time
Airtable, a low-code software company, underwent its second round of layoffs within nine months. Approximately 237 employees, equivalent to 27% of its workforce, were affected. The company aimed to target large enterprise clients and transition to a more sustainable business model while achieving cash-flow positivity.
September 2023: Alphabet Lays Off Recruitment Team
Alphabet, the parent company of Google, initiated another round of layoffs, primarily affecting the recruitment team. The move aimed to streamline operations, increase efficiency, and adapt to the changing technology landscape. Alphabet focused its workforce on engineering and technical roles to remain competitive in the tech industry.
Industry-wide Impact and Outlook
These notable tech layoffs in 2024 reflect the challenges faced by the Big Tech industry. As companies restructure and downsize their workforce, they aim to optimize their operations, align resources with strategic goals, and navigate the uncertain macroeconomic conditions.
The tech industry’s recovery in 2024, as indicated by the projected increase in global IT spending, provides a glimmer of hope. However, companies need to adapt to changing market dynamics, prioritize investments in emerging technologies, and find innovative ways to drive growth and profitability.
As the industry continues to evolve, it remains crucial for tech companies to strike a balance between scaling their operations and navigating economic uncertainties. By doing so, they can position themselves for long-term success in an ever-changing landscape.