In the first month of 2024, the tech industry witnessed a significant wave of job cuts, continuing a trend that began in 2023. With over 240,000 jobs lost in the previous year, a 50% increase from the year before, various tech companies are grappling with challenging market conditions. The focus has shifted from growth to efficiency, prompting widespread layoffs.
Frontdesk’s Abrupt Decision:
Frontdesk, a US-based prop-tech company, shocked its 200 employees by firing them in a two-minute Google Meet call. CEO Jesse DePinto delivered the news, revealing the company’s decision to opt for state receivership instead of declaring bankruptcy.
Google’s Broad Layoffs:
Alphabet’s Google announced layoffs across its digital assistant, hardware, and engineering teams, affecting hundreds of staff. The company cited organizational changes aimed at simplifying execution and driving efficiency. Google’s subsidiary, Alphabet’s X Lab, also laid off dozens of workers and sought external funding.
Microsoft’s Restructuring at Activision Blizzard:
Microsoft took a toll on the gaming industry by cutting 1,900 jobs from Activision Blizzard, Xbox, and ZeniMax, constituting around 8% of the total Microsoft Gaming division. The move is part of a sustainable cost structure plan to support the company’s growing business.
Amazon’s Diverse Workforce Reductions:
Amazon’s various divisions announced substantial layoffs. Audible, the online audiobook and podcast service, is letting go of 5% of its employees, while Amazon Prime Video and Twitch are also reducing their workforce significantly. Amazon’s Buy with Prime unit laid off about 5% of its employees.
Xerox, Unity, Discord, and eBay:
Xerox, an IT company, announced a reduction of its workforce by 15%, impacting about 3,000 employees. Unity Software, a video game software provider, is cutting 1,800 jobs to focus on core business. Discord, a social chat and messaging startup, laid off 170 employees, and eBay is reducing its workforce by 9%, cutting around 1,000 jobs.
Flipkart, Swiggy, Riot Games, TikTok, and Salesforce:
Flipkart, the Indian e-commerce giant, is laying off 1,000 employees as part of its annual performance review exercise. Swiggy, a food tech giant, reportedly laid off 400 employees, affecting 7% of its workforce. Riot Games, the developer of “League of Legends” and “Valorant,” is cutting 11% of its staff, around 530 jobs. TikTok laid off 60 workers from its advertising and sales division, and Salesforce is set to cut 700 jobs, about 1% of its global workforce.
As these tech giants grapple with market challenges, the widespread job cuts indicate a shift towards cost-effective measures and a focus on core business strategies. Employees across various sectors are facing the impacts of these organizational changes, marking a challenging start to the year for the tech industry.
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