When layoffs in tech companies peaked in 2023, industry analysts attributed this surge to excessive hiring during the Covid-19 pandemic era of 2021 and 2022, and strategic business segment closures. As we move into 2024, the trend of workforce reductions continues, with 74,591 employees having been laid off from 257 tech companies in just three and a half months. Among these companies, Alphabet-owned Google stands out as a major contributor to these layoffs in 2024.
The technology giant is reportedly laying off an unspecified number of employees to reduce costs. Reports believe this could be one of the largest job cuts at Google this year. One current employee described the layoffs as “pretty large-scale.”
The layoffs at Google have impacted staff across the real estate and finance departments, according to a Business Insider report. Specifically, employees in treasury, business services, and revenue cash operations within the finance department have been affected.
However, what’s noteworthy is that affected Google employees will have the opportunity to apply for internal positions within Alphabet as part of the company’s restructuring efforts.
Ruth Porat, Google’s finance chief, communicated in an email to staff that Google plans to establish “growth hubs” in key locations like Bangalore, Mexico City, and Dublin to facilitate the company’s restructuring process.
Alphabet’s Layoffs 2024
April is not the first time this year that Alphabet has fired its employees. In January 2024, Google terminated hundreds of workers across multiple teams, including engineering, hardware, and assistant divisions. These layoffs were driven by the company’s shift in focus towards advancing its artificial intelligence capabilities.
Looking back to January 2023, Alphabet had previously announced plans to cut 12,000 jobs, representing approximately 6% of its global workforce.
Tesla Facing Challenges
Apart from Google, Tesla, the electric car company owned by Elon Musk, made headlines with its decision to lay off more than 10% of its total workforce, totalling approximately 14,000 employees. This figure represents the largest layoffs in the tech industry this year.
Tesla’s decision to downsize its workforce is driven by challenges such as poor sales of electric vehicles (EVs), declining margins, and heightened competition from rivals in the automotive sector.
In addition to the layoffs, Tesla witnessed the departure of key senior executives, including Drew Baglino, a senior vice president, and Rohan Patel, the head of policy and business development. These executive resignations further underscored the company’s internal restructuring efforts and strategic realignment.
As the competition in the tech industry intensifies, many companies are undergoing restructuring, which often leads to layoffs. Despite this trend, the demand for a skilled workforce remains robust, especially in emerging technologies such as Artificial Intelligence (AI). Therefore, job seekers must prioritize upskilling and ongoing learning to reduce the risk of layoffs.
