In the early months of 2024, the tech industry has witnessed a significant wave of layoffs affecting both major corporations and smaller startups. Companies such as Tesla, Amazon, Google, TikTok, Snap, and Microsoft have all announced sizable reductions in their workforce, contributing to a broader trend that has seen over 130,000 job cuts across 457 companies, according to Layoffs.fyi. This tumultuous period in the tech sector reflects ongoing restructuring efforts and cost-saving measures amid shifting market dynamics.
Tesla and Amazon have been at the forefront of these layoffs, with Tesla reportedly cutting around 40% of its workforce, impacting approximately 550 employees. Amazon has eliminated 20% of its total workforce in its second restructuring effort within a year. These cuts are part of broader strategies to streamline operations and adapt to changing market conditions.
The impact of these layoffs extends beyond major corporations. Smaller startups have also felt the squeeze, with some companies shutting down operations entirely. A web browser and search startup reportedly cut around 14% of its total staff as part of its restructuring efforts. Additionally, another company has reduced its workforce by 21%, aiming to generate $60 million in annual cost savings.
Microsoft has not been immune to this trend either, eliminating around 30% of its total workforce. CEO Graham Gaylor confirmed the cuts in a statement, highlighting a need for operational efficiency. Meanwhile, Snap is set to cut about 10% of corporate roles as it undergoes a restructuring plan following the planned resignation of Anushka Salinas as operating chief and president at the end of January.
TikTok has also announced substantial layoffs, cutting about 30% of its total workforce. In contrast, Google is reportedly reducing its headcount by about 2%, affecting various departments. The marketing and recruiting departments at another company saw at least a 5% reduction in staff.
Tesla is laying off approximately 400 employees, or roughly 6% of its workforce, as part of a restructuring ahead of the launch of its first electric SUV later this year. This move is indicative of the company's efforts to align its resources with upcoming projects and market demands.
Even smaller startups are not exempt from these challenging times. One company reportedly laid off about 20 employees, accounting for nearly 5% of its total workforce, while another confirmed to TechCrunch that it had cut just under 40% of its staff, amounting to dozens of employees.
