The global tech industry continues to grapple with workforce reductions, extending the challenges faced in 2023 into 2024. Prominent players such as Amazon, Apple, Dell, Byju’s, Expedia, and Cisco have executed significant layoffs across departments. Data from Layoffs.fyi reveals the magnitude of the situation: a total of 57,785 employees have been laid off in Q1 2024.
In January alone, 121 companies downsized their workforce by 34,007 individuals. This is followed by 15,589 employees fired by 74 companies in February, and 8,735 job losses in over 50 companies worldwide. This ongoing trend is attributed to various factors, such as the aftermath of pandemic-induced overhiring, fundraising challenges, strategic realignments, segment closures, and other efficiency initiatives taken by tech companies.
Biggest Layoffs at Tech Companies 2024
Amidst this landscape of industry-wide layoffs, several major tech companies have made significant cuts to their workforce.
Apple has recently made headlines by laying off approximately 600-700 employees in California. This decision primarily stems from the shutdown of its self-driving electric Apple Car and smartwatch display projects. However, the recent layoff figure is not even 1% of the company’s total workforce, which stood at 161,000 employees reported by the end of fiscal 2023, ending September 30, 2023.
After a decade of investing over $10 billion in the Apple Car project, Apple announced its closure by February end. The decision to cancel the project was reportedly influenced by executive indecision regarding its direction and financial viability.
Another major layoff in 2024 occurred at Dell Technologies, where 6,000 employees were let go in March. This reduction contributed to a larger trend as the company’s total employee count decreased by 13,000, from 133,000 in February 2023 to 120,000 in February 2024. One of the primary factors contributing to these layoffs at Dell was the prolonged period of sluggish demand for personal computers worldwide, spanning nearly two years. Dell witnessed a notable 19.6% YoY decline in its PC shipments, totalling 40 million in 2023. The decline in shipments had increased from 2022 when the company reported a 16.1% YoY drop.
Throughout Fiscal 2024, Dell Technologies implemented various cost-cutting measures to address these challenges. These measures included limitations on external hiring, reorganizations of employees, and other strategic actions aimed at aligning investments with the company’s announced strategic and customer priorities. As a result of these efforts, there was a reduction in the overall headcount.
Amazon also slashed hundreds of jobs in its cloud computing division last month. This latest round of layoffs is expected to impact sales and marketing employees, as well as the team responsible for developing technology for brick-and-mortar stores.
Amazon’s ongoing reduction in headcount comes after a period of extensive layoffs lasting over a year. Starting at the end of 2022 and extending into 2023, Amazon initiated its largest-ever round of layoffs, eliminating more than 27,000 positions across nearly every sector of the company. Additionally, throughout this year, the e-commerce giant has implemented layoffs in various units, including Twitch, Audible, Buy with Prime, Prime Video and MGM Studios.
Byju’s, once regarded as India’s most valuable edtech company, has also been facing financial challenges for quite a long time now, leading to the layoff of approximately 500 employees in March 2024. In recent months, the company has experienced an escalating HR crisis, resulting in doubts about its sustainability and prompting around 1,500 employees to voluntarily leave.
This has significantly reduced Byju’s employee count, which currently stands at around 13,000, down from nearly 15,000 at the end of 2023. These layoffs are attributed to a restructuring initiative taken by the edtech company due to a severe funding crisis, investor dissatisfaction, and underlying factors.
In a Nutshell
As tech companies navigate through uncertain times, the road ahead appears challenging. The rapid adoption of AI technologies has also emerged as a significant factor prompting companies to fire their underperforming employees, given that AI tools can now effectively carry out their tasks. However, there is still a big window of opportunity for job seekers as companies actively seek skilled professionals across the sector.
At the organizational level, companies must prepare themselves better for unforeseen situations by drafting employee-friendly policies and implementing strategies to navigate crises without resorting to substantial layoffs.
