2024 witnessed 150,000 Jobs Lost Amid Industry Shake-Up

The tech industry, once a bastion of growth and innovation, is experiencing one of its most significant crises in recent history. Over 150,000 jobs have been slashed across major technology companies as market dynamics shift and economic pressures mount. This mass layoff wave underscores the challenges facing big tech companies as they grapple with changing consumer demands, economic uncertainty, and evolving industry priorities.

Intel, aiming to save $10 billion by 2025, is cutting 15,000 jobs, over 15% of its workforce. Tesla, has laid off over 20,000 employees across departments. Cisco trimmed approximately 10,000 jobs this year, with a 5% cut in February followed by 7% later. SAP is restructuring, affecting 8,000 roles, which is about 7% of its workforce. Dell is cutting 6,000 jobs amid weak PC demand, its second major layoff in two years. Xerox is eliminating 3,000 roles, 15% of its workforce, in a restructuring move.

Several factors have converged to create this unprecedented upheaval in the tech sector. The pandemic-induced digital boom saw companies hiring aggressively to meet the surging demand for online services, remote work solutions, and e-commerce. However, as the world adjusts to a post-pandemic reality, growth has slowed, leading to overcapacity in many firms.

The rapid rise of generative AI, blockchain, and other cutting-edge technologies has disrupted traditional business models, forcing companies to reevaluate their strategies and invest in areas of future growth.

Microsoft has laid off 2,500 employees in its gaming division, affecting Activision Blizzard, Xbox, and ZeniMax. Alphabet reduced its workforce significantly, even in its high-growth areas like cloud computing, citing overstaffing during the pandemic. Also, Amazon, the retail and cloud computing giant has let go of workers across its logistics and technology teams to address declining sales growth and rising operational costs.

The layoffs have impacted employees across all levels, from entry-level engineers to seasoned executives. Entire teams in areas like software development, marketing, and customer support have been disbanded. Employees, many of whom relocated for these jobs, now face financial and emotional uncertainty.

Thousands of skilled professionals are now entering the job market, creating a surplus of talent and intense competition for the few available roles. The industry is hoping 2025 to be a better year, with no layoffs and more opportunities.