Discover
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Why are tech giants Google and Meta laying off employees?
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How many employees have been affected by layoffs in the tech industry this year?
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What regions and departments are most impacted by the layoffs?
Let’s come straight to the point. 2023 saw a record layoff of over 260,000.
Although 2024 began with optimism, layoffs are still rife, with over 74,000 workers having been laid off from 255 companies.
According to reports, Google laid off at least 200 “Core” team employees and will also be moving several roles to India and Mexico. However, the layoffs hadn’t started just in 2024 but had started the previous year.
It has been implementing small-scale job cuts across departments throughout the year, and the trend continues this year. Google decided to implement layoffs with a focus to optimise operations and enhance efficiency. Furthermore, it aims to align its workforce with its core product priorities.
The restructuring involves consolidating resources and streamlining operations. Moreover, the focus is on voice-based Google Assistant, augmented reality hardware, and central engineering teams.
In his recent interview with Bloomberg, Sundar Pichai explained why the company keeps doing regular layoffs. He said that while in some cases it is simplifying teams, in others, it is “reallocating” its workforce towards “highest priorities”.
But is it just Google that has been laying off its employees? No. Many tech giants like Meta, Amazon, Microsoft, and Apple have also laid off their employees in big numbers.
Technology companies have continued to lay off staff in 2024, even though the year was seen as the year of recovery for the IT industry. Last year, tech giants such as Amazon, Cisco, Facebook parent company Meta, Microsoft, IBM, SAP, and Salesforce—as well as many smaller companies announced layoffs.
Layoff in Big Tech Giants
Meta
Meta’s profit has more than doubled in the last quarter, but despite earning billions of dollars in profits, the tech industry is in disarray. In January, Meta laid off 50 employees from its Facebook Messenger division. According to reports by the end of 2023-Microsoft, Apple, Meta, Google, and Amazon had at least 71 per cent more workers compared to the pre-pandemic period.
However, the pandemic was followed by sky-high inflation around the world. People started cutting their expenditure on non-essential items. Subsequently, fearing a decline in profits, tech firms resorted to massive cost-cutting plans.
According to data between 2021 and 2023, Meta, Amazon, Microsoft, Google and Apple collectively laid off more than 100,000 workers. Artificial Intelligence is another reason as to why companies are reducing workers in other areas of their business. Tech employees are facing a double whammy despite the big tech firms making profits.
Amazon
In its latest series of job cuts Amazon Web Services has eliminated several hundred sales, marketing and tech roles. Amazon has laid off hundreds of staff in its Prime Video service, healthcare business and Alexa voice assistant unit, as the tech giant extends the massive layoffs in 2024.
According to reports more than 57,000 workers have been laid off across 229 firms. Additionally, Amazon laid off more than 27,000 in 2022, and 2023, after the tech industry hired too many people during the pandemic. In March 2024, the giant laid off hundreds of employees within its Pharmacy and One Medical division as per reports.
The Bottom Line
The layoffs in major tech companies including Google, Meta, and Amazon, continue into 2024, despite the industry’s perceived recovery from the pandemic. According to the companies they are laying people off to focus on optimising operations, cost cutting, over-hiring in the pandemic and addressing economic uncertainties and financial issues.
Frequently Asked Questions
Will 2024 have more layoffs?
The year 2023 saw record layoffs of over 260,000. Although 2024 began with optimism, layoffs are still rife, with over 74,000 workers having been laid off from 255 companies.
Is Nike laying off employees in 2024?
Nike plans to lay off 740 employees at its Oregon headquarters before the end of June.
Is Tesla doing layoffs?
Yes, earlier this year, Tesla CEO Elon Musk announced plans to reduce the company’s workforce by 10 per cent.
What are the reasons behind layoffs happening in 2024?
Cost-cutting, restructuring, revenue growth, investor pressure and the rise of AI and Automation are the major reasons behind many companies laying off their staff.
Is Capgemini laying off employees?
With over half of Capgemini’s global workforce based in India, the reduction of 10,000 employees mirrors the worldwide trend: a 2% drop in onshore staff and 7% in offshore.
