In the first month of 2024, the technology sector is witnessing a significant wave of layoffs and announcements about more layoffs this year, impacting some of the industry’s biggest names like Google, Amazon, and Duolingo. This trend follows a tumultuous period in 2022 and 2023, raising concerns about the future of tech employment and the broader economic implications.
Google’s Global Downsizing
Google’s recent announcement of job cuts across its advertising, sales, engineering, and hardware teams, including those working on the Google Assistant, marks a notable shift in the company’s strategy. This follows an internal email leaked to the New York Times and Semafor, confirming the extent of the downsizing. The decision indicates a reshaping of Google’s focus areas and resource allocation, reflecting the broader industry trend of ‘right-sizing’.
Wayfair’s Workforce Reduction
The furniture e-commerce giant Wayfair is not far behind, with plans to reduce its workforce by 13%. CEO Niraj Shah, who previously urged employees to work long hours, stated that this move is aimed at positioning the company for long-term stability. This decision echoes a similar sentiment across the tech sector, where businesses are recalibrating their strategies in response to market pressures.
The Ripple Effect Across Tech Giants
Other major players in the tech industry are also feeling the ripple effects. Twitch, an Amazon-owned live streaming site, plans to cut 35% of its staff, as revealed by CEO Dan Clancy in a blog post. Amazon itself is trimming down its Prime Video and MGM Studios divisions, following an extensive business operations review.
The Shift to AI at Duolingo
Duolingo, a popular language learning app, is cutting 10% of its contract workforce. This move aligns with the company’s pivot towards artificial intelligence for content generation. It’s a stark reminder of how technological advancements are reshaping employment landscapes.
Other Major Layoffs
Additionally, Macy’s has outlined plans to cut 2,350 jobs and close five department stores, which affects a significant portion of its workforce. AI startup Humane and Discord are also downsizing, with the latter cutting 17% of its workforce to bring more agility to the company.
The Bigger Picture
These layoffs are part of a larger trend observed in 2023, where over 305,000 employees in major U.S. companies lost their jobs, as per Forbes’ layoff tracker. The largest of these came from the now-bankrupt trucking company Yellow, which laid off all 30,000 of its employees in July.
