Mass layoffs across the technology sector have continued throughout 2024 following a tumultuous year of layoffs during 2023.
In 2023, nearly 2,000 tech companies made significant layoffs, resulting in over 260,000 tech workers out of their job by December that year.
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According to online tracker, layoffs.fyi, job cuts have continued to plague the industry with over 81,000 employees laid off in 2024 already.
Duolingo, Unity Software and BenchSci were among the 13 tech companies to conduct layoffs within the first nine days of 2024 that left approximately 2,358 employees out of work.
As 2024 reaches its midway point, Verdict compiled the tech sector’s biggest layoffs so far.
Tesla
On the 7 May 2024, Tesla entered its fourth week of layoffs following disappointing sales of its cybertruck EV.
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By GlobalDataIn April 2024, Bloomberg and Electrek reported that an internal memo sent by Tesla CEO Elon Musk stated that 10% of its workforce could be cut, potentially affecting nearly 14,000 people.
In Q1 2024, Tesla stated that it had only sold 386,000 cybertruck units, despite producing over 430,000.
The company’s most recent layoffs, in May, affected teams in software, engineering and services.
According to layoffs.fyi graphs, Tesla has conducted the largest number of tech layoffs since the Covid-19 Pandemic in 2020.
Cisco
Cisco cut 5% of its workforce, equating to 4,000 employees, in February following its Q2 2024 earnings which reported a drop in its product and services revenues.
Cisco CEO Chuck Robbins noted in the earnings call that demand for Cisco’s telco and cable services was on the decline but stated that the company would continue to make investments towards future growth opportunities.
Cisco’s next earnings call is scheduled for the 15 May 2024.
Ericsson
Ericsson cut 1,200 Swedish jobs in March 2024 citing ongoing market challenges and a dwindling demand for 5G products and rollout.
It first began negotiations with unions on 25 March, with its Swedish layoff planned as part of a global effort to cut the company’s costs. In 2023, Ericsson cut over 8,000 jobs globally.
At the end of 2023, Ericsson had around 100,000 employees according to an annual report.
Ericsson stated that it had made the layoffs to increase operational efficiency through measures such as reducing the number of consultants, streamlining processes, and reducing facilities.
Apple
Apple cut over 600 employees following the closure of its self-driving EV project. Affected employees included hardware engineers, machine shop managers and product design engineers.
Employees not made redundant but who had worked on the EV project were encouraged to apply for other Apple jobs.
In an internal memo, Apple CEO Tim Cook and its COO Jeff Williams stated that the employees working on the EV project would be reassigned to AI work. The layoffs mark the first significant round of cuts Apple has made since the Covid-19 Pandemic.
Apple had previously bucked tech’s layoff trend in September 2023 when Cook stated that Apple was interested in hiring UK AI talent.
Google made 200 employees redundant in May 2024 to support the company’s long-term financial goals.
Many of the titles affected had been relocated abroad to save money. Some of the affected jobs were moved to India or Mexico in an attempt to be closer to Google’s partners.
The layoffs affected Core employees, including its Python and Flutter developer teams, who work on online safety and Google’s flagship products.
Asim Husain, Google’s vice president of its Developer Ecosystem, acknowledged the uncertainty created among employees, but stated that software development was undergoing industry-wide upheaval thanks to the rise of generative AI.
The redundancies were announced shortly after Google’s parent company Alphabet announced its first ever dividend following successful Q1 2024 results.
Previous layoffs made this year by Google include hundreds of jobs lost across its augmented reality, Pixel and Nest teams.
