Google has reportedly cut its number of top management roles by 10% in its yearslong push for efficiency. According to a report in Business Insider, CEO Sundar Pichai told employees the same in an all-hands meeting earlier this week.
Pichai reportedly said that Google had made changes over the past couple of years with the aim to "simplify the company and make it more efficient." The report quotes two employees who claim to have heard the remarks.
Quoting sources, the report added that Pichai further said that the efficiency push included a 10% reduction in managers, directors, and vice presidents. Google spokesperson told the publication that while some of those roles were changed to non-managerial positions others were eliminated entirely.
Google's 'biggest-ever' job cuts
In September 2022, Pichai said he wanted Google to be 20% more efficient, and the following January the company had a historic round of layoffs that saw 12,000 roles eliminated. In January 2023, Alphabet, parent company of Google, announced that it’s cutting around 6% of its global workforce. In an open letter published by Google and Alphabet CEO Sundar Pichai said that the company had “hired for a different economic reality” than what it’s up against today. “We’ve undertaken a rigorous review across product areas and functions to ensure that our people and roles are aligned with our highest priorities as a company,” Pichai wrote, adding that the layoffs will impact units across Alphabet, not just Google, and that all regions and product areas will be affected.
Layoff warning in January 2024
In January 2024, Google CEO Sundar Pichai sent a memo to its staff warning more layoffs are expected this year. Pichai’s memo said the company will have to make “tough choices” to meet its ambitious goal. Though Google layoffs in 2024 have not been as deep as in 2023, several divisions have seen employees go.
"Googleyness" gets new meaning
At this week's all-hands, Google CEO Pichai also said that the word "Googleyness" had become too broad. Pichai clarified what the word means for the company. The word is now said to be about being "Mission First" and being "Bold and Responsible."
The Tokyo Metropolitan Government is set to implement a four-day workweek for its employees starting in April 2025, aiming to address Japan's declining fertility rates and promote work-life balance. Governor Yuriko Koike unveiled the plan, which also includes new policies to support working parents. The initiative is part of a broader effort to help alleviate pressures on families and reduce the gender gap in the workforce.
Starting in April 2025, the Tokyo Metropolitan Government will offer its employees a new work schedule—three days off each week. This move is part of a broader strategy to address Japan’s declining birth rates by improving work-life balance, particularly for working parents. Alongside the four-day workweek, a separate policy will allow parents of elementary school children in grades one to three to reduce their working hours in exchange for a proportional salary cut.
“We will review work styles … with flexibility, ensuring no one has to give up their career due to life events such as childbirth or childcare,” said Tokyo Governor Yuriko Koike, in a policy address on Wednesday. “Now is the time for Tokyo to take the initiative to protect and enhance the lives, livelihoods, and economy of our people during these challenging times for the nation.”
Japan’s Fertility Crisis and the Need for Change
Japan is currently facing a fertility crisis, with its birth rate dropping to a record low of 1.2 children per woman, far below the replacement rate of 2.1. In 2023, the nation saw only 727,277 births, with Tokyo's birth rate sinking even further to 0.99. This demographic decline has caused significant concern, as it is expected to lead to a population reduction from 128 million in 2008 to an estimated 86.7 million by 2060.
In response, the government has introduced various policies, including incentivising childbearing and encouraging men to take paternity leave. However, experts argue that Japan's demanding work culture is a major factor driving down birth rates. Long hours and high workplace pressure often force workers, especially women, to choose between their careers and family life. This issue is compounded by Japan's substantial gender gap in labour force participation—55% of women participate in the workforce compared to 72% of men, according to World Bank data.
The Work-Life Balance Struggle
Japan's rigorous work culture, known for long hours and “karoshi” (death by overwork), has long been a barrier to balancing career and family. Women, in particular, are under pressure to choose between career advancement and motherhood, with many finding the cost of raising children, coupled with their unequal share of domestic duties, too high a price. The International Monetary Fund (IMF) reports that women in Japan perform five times more unpaid domestic work than men, and many women who had fewer children than they wanted cited the increased burden of housework as a deterrent.
A four-day workweek could provide a much-needed solution, offering families more time together and reducing the pressure on working parents. As Koike stated, the goal is to ensure that no one has to give up their career due to childbirth or childcare, with the added benefit of helping improve fertility rates.
Global Success of Shortened Workweeks
The idea of a four-day workweek has gained traction globally, with companies in Western nations beginning to experiment with compressed work schedules as a way to enhance employee well-being and attract talent seeking a better work-life balance. A 2022 global study by 4 Day Week Global involved trials in six countries, where over 90% of participating employees reported improvements in physical and mental health, reduced stress, and better work-life integration. The trials showed that men also took on a greater share of household responsibilities, spending 22% more time on childcare and 23% more on housework.
Peter Miscovich, a global future of work expert at JLL, highlighted the benefits of shorter workweeks, saying, “The upside from all of that has been less stress, less burnout, better rest, better sleep, less cost to the employee, higher levels of focus and concentration during the working hours, and in some cases, greater commitment to the organisation as a result.”
These positive results suggest that Japan’s move toward a four-day workweek could alleviate some of the burdens of working parents and potentially boost the country’s low fertility rate.
Cultural Shifts and Challenges Ahead
While the four-day workweek has proven successful in other parts of the world, its adoption in Japan presents significant cultural challenges. In Japanese corporate culture, long hours are often equated with loyalty to the company, and shifting away from this norm will require a deep cultural transformation. Despite the potential benefits of a shorter workweek, it may take time for Japanese companies to fully embrace the idea.
Tokyo’s initiative comes at a critical time for the nation, which has seen its population steadily decline since 2008. In addition to its fertility policies, Japan is pushing for measures to create a more family-friendly society. Earlier this year, Singapore introduced new regulations requiring companies to consider employee requests for flexible working arrangements, including four-day workweeks.
As Tokyo moves forward with its plans, the success of these policies could set a precedent for other cities in Japan and beyond, encouraging broader adoption of family-friendly work policies and offering new solutions to global work-life balance challenges.
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Elon Musk and Vivek Ramaswamy propose sweeping reforms for the US federal workforce, aiming to cut jobs and end remote work. Their plan, backed by President-elect Trump, seeks efficiency and cost reduction.
Elon Musk and biotech entrepreneur Vivek Ramaswamy have announced a plan to overhaul the US federal workforce, which includes job cuts and an end to remote work for federal employees. Their vision, published in The Wall Street Journal, introduces the Department of Government Efficiency (DOGE), a new initiative supported by President-elect Donald Trump. The goal is to reduce the size of the federal government, cut unnecessary spending, and lessen the influence of unelected officials in policy-making.
A key policy is mandating all federal employees to return to in-person work five days a week. Musk and Ramaswamy believe this will encourage resignations among those unwilling to comply. They argue that taxpayers should not fund the 'Covid-era privilege' of working from home. This move is part of a broader strategy to streamline government operations and reduce workforce costs.
The duo is also advocating for significant workforce reductions, labelling the federal bureaucracy as bloated. Their cost-cutting measures aim to eliminate non-essential funding, such as $535 million annually for the Corporation for Public Broadcasting and $300 million allocated to Planned Parenthood. They estimate these reforms could save over $500 billion in unauthorised expenditures.
Beyond workforce changes, Musk and Ramaswamy aim to reduce the influence of unelected officials who create regulations without congressional approval. They claim these regulations burden businesses and taxpayers. By leveraging recent Supreme Court rulings, they plan to remove rules lacking clear congressional backing. Their strategy emphasises executive action over new legislation to stimulate economic growth by easing regulatory constraints.
Musk and Ramaswamy have set July 4, 2026, as the deadline to implement their reforms, framing it as a patriotic effort to restore governance to its constitutional roots. They anticipate resistance from political and legal interests but believe a strong electoral mandate and a conservative Supreme Court majority provide an opportunity to reshape the federal government.
The proposed changes represent a big shift in federal governance, focusing on efficiency and cost reduction at the expense of remote work flexibility and current staffing levels. While supporters see the plan as necessary reform, critics may question its feasibility and potential impact on public services.
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Amazon may eliminate approximately 14,000 manager positions by early 2025, potentially saving up to $3 billion per year, according to a recent Morgan Stanley analysis. This move aligns with CEO Andy Jassy's goal to increase the ratio of individual contributors to managers by at least 15% by the end of Q1 2025. Jassy aims to increase the ratio of individual contributors to managers by at least 15% by the end of Q1 2025. These changes are part of Amazon's broader effort to "operate like the world's largest startup," with Jassy emphasising the need for "strong urgency, high ownership, fast decision-making, scrappiness and frugality, deeply-connected collaboration."
The estimate, according to Morgan Stanley, suggests that Amazon could reduce its management workforce from about 105,770 to 91,936 globally. This reduction would result in annual cost savings between $2.1 billion and $3.6 billion, representing 3% to 5% of Amazon's projected 2025 operating profit.
Amazon confirmed to Business Insider that it has "added a lot of managers" recently and believes "now is the right time" to make this change. The company stated that every team will review their structure, and it's "possible" that some roles may be eliminated.
The restructuring aims to remove unnecessary organisational layers and improve Amazon's agility by reducing bureaucratic hurdles. However, the company has not committed to specific job cuts, suggesting that the ratio change could potentially be achieved through other methods, such as reassigning managers to new roles.
Morgan Stanley's analysis assumes that 7% of Amazon's workforce holds management positions, with an estimated annual cost per manager between $200,000 and $350,000. The investment bank views this potential move as a significant opportunity for Amazon to enhance its operational efficiency.
The global IT industry is rapidly evolving, driven by technological advancements such as AI, cloud computing, and cybersecurity. As the demand for specialized skills grows, IT professionals are grappling with a widening skills gap that threatens their competitiveness in the global market.
The IT Skills Gap: A Growing Challenge for Indian IT Professionals
According to the Economic Survey 2024, only 51.25% of Indian youth are employable, leaving nearly half of the workforce ill-prepared to meet industry demands.
The India Skill Report 2024 has revealed a significant mismatch between the skills of Indian IT graduates and industry demands. The report highlights a 60%-73% demand-supply gap in critical roles such as machine learning engineers, data scientists, DevOps engineers, and data architects.
This gap shows the disconnect between academic training and the evolving needs of the IT sector. If unaddressed, this skills disparity could hamper the growth of India’s IT industry and reduce its capacity to drive economic development, limiting the country’s potential in the global technology landscape.
The Numbers Behind the Skills Gap
This skills mismatch has resulted in a staggering 3,00,000 unfilled positions across major IT companies in India. According to a Times of India article, TCS alone accounts for 80,000 open positions, representing 13% of its workforce.
Other leading IT firms are also grappling with similar challenges, with a significant number of vacancies. Assuming 10% of their workforce is affected by the skills gap, the estimated open positions are as follows:
Accenture (35,000), Infosys (35,000), Wipro (25,000), HCLTech (25,000), Capgemini (25,000), Cognizant (25,000), Tech Mahindra (15,000), LTIMindtree (8,000), Mphasis (3,000), L&T Technology Services (3,000), and Persistent Systems (3,000).
Note: This is based on the editor’s estimation, not confirmed data from the companies.
Bridging the Gap: The Need for Skill Development
Addressing this skills gap requires a focus on reskilling and upskilling initiatives to align Indian IT professionals with the evolving needs of the global industry.
Collaboration between academia, government, and industry is essential to develop more relevant educational programs.
With major companies holding thousands of open positions, filling these roles will be crucial not only for individual career growth but also for maintaining India’s leadership in the global IT sector.
Key Metrics
Unfilled Positions: 3,00,000 across major IT companies
TCS Open Positions: 80,000 (13% of workforce)
Employability: Only 51.25% of Indian youth are readily employable
Referencessights in plus
U.S. tech giant Cisco has let go of thousands of employees following its second layoff of 2024.
The technology and networking company announced in August that it would reduce its headcount by 7%, or around 5,600 employees, following an earlier layoff in February, in which the company let go of about 4,000 employees.
As TechCrunch previously reported, Cisco employees said that the company refused to say who was affected by the layoffs until September 16. Cisco did not give a reason for the month-long delay in notifying affected staff. One employee told TechCrunch at the time that Cisco’s workplace had become the “most toxic environment” they had worked in.
TechCrunch has learned that the layoffs also affect Talos Security, the company’s threat intelligence and security research unit.
Cisco said in its August statement that its second layoff of the year would allow the company to “invest in key growth opportunities and drive more efficiencies.” On the same day, Cisco published its most recent full-year earnings report, in which the company said 2024 was its “second strongest year on record,” citing close to $54 billion in annual revenue.
Cisco chief executive Chuck Robbins made close to $32 million in total executive compensation during 2023, according to the company’s filings.
When reached by email, Cisco spokesperson Lindsay Ciulla did not provide comment, or say if Cisco’s executive leadership team planned to reduce their compensation packages following the layoffs.
Are you affected by the Cisco layoffs? Get in touch. You can contact this reporter on Signal and WhatsApp at +1 646-755-8849, or by email. You can send files and documents via SecureDrop.
A look at Cisco’s response to the current economic climate and transition trajectory leading to significant layoffs:
Cisco’s focus on subscription-based services
Cisco's $28 billion acquisition of Splunk in March signals a strategic shift towards subscription-based services. This move marked a significant shift for Cisco, traditionally known for networking equipment, as it entered the competitive cybersecurity market alongside players like Palo Alto Networks, Check Point, CrowdStrike, and Microsoft, as ET followed this development.
Cisco’s funding to AI startups
Since 2018, Cisco has been actively involved in the AI space, acquiring Accompany and CloudCherry to expand its presence in this rapidly growing technology. In 2019, the company launched the Silicon One ASIC chip, offering speeds of 25.6 Tbit/s, directly competing with Intel and Nvidia.
Cisco has allocated $1 billion to fund AI startups.
Earlier in February, Cisco partnered with Nvidia. The latter agreed to use Cisco's ethernet with its own technology that is widely used in data centers and AI applications. In June, Cisco invested in AI startups like Cohere, Mistral AI, and Scale AI. The company announced that it had made 20 acquisitions and investments related to AI in recent years.
Focus on emerging technologies
Cisco offers data center technologies like the Unified Computing System (UCS) and Nexus switches, designed to support modern data center and cloud environments. Additionally, their collaboration tools, such as WebEx and Cisco Jabber, enhance communication and productivity.
Shifting focus on cybersecurity
Since 2013, with the acquisition of Sourcefire, a network security and threat detection provider Cisco strengthened its security portfolio. Open DNS acquired in 2015, provides cloud based threat detection and prevention. CloudLock, a cloud security solutions provider for $293 million protects users and data in cloud environments. Duo Security, for $2.35 billion, provides cloud based authentication and access control.
Meet my new secretary, ChatGPT. Over the last couple of weeks, tied up by several unending writing projects, I’ve done what I once deemed unthinkable. I’ve found myself going to ChatGPT — OpenAI’s artificial intelligence bot — for everything from proof-reading and copy-editing to research and review.
I most certainly realise that I’m quite late to the chase. A lot of my friends have been employing ChatGPT for ages now to write and draft all sorts of documents. But I’m a bit of a purist writer, to be honest. I’ve always believed that words are deeply personal. If you’re writing a letter, email or essay, every word ought to come from your heart -- not from digital algorithms operating mysteriously. Admittedly, therefore, I still don’t use ChatGPT to do any of my actual writing (I assure you this column has not been written by ChatGPT).
But as I began using ChatGPT, I realised why I had previously been afraid of it. This thing is addictive and eerily efficient. It understands more about the world than I was led to believe. It reads and writes rapidly. And I hate to say this, but it can do a lot of the work that so many of us get paid to do -- for free.
To be sure, none of this makes AI all that different from the world’s previous tech revolutions. Every time a new machine has been invented, fear has followed.
In 1830, Britain was about to flag off the world’s first passenger train to run between Liverpool and Manchester. Among the railroad project’s most ardent supporters was a local Member of Parliament, William Huskisson. In the run-up to the railway’s grand opening, Huskisson had just undergone surgery and was advised by his doctor to cancel all upcoming appointments. Huskisson refused. The train’s debut was far too important an occasion, he argued.
It was a fateful decision. On the big day, as the train’s demo got underway, Huskisson walked across the tracks to shake hands with Prime Minister Arthur Wellesley. Then, disaster struck. Before he knew it, Huskisson saw the train barreling down towards him as he watched in horror. His feet got stuck in the tracks and the MP was knocked out clean.
In the aftermath of the accident, much British press coverage of the event naturally dwelt on Huskisson’s tragic death. Writers shuddered at the thought of speedy steam engines mowing down people all over England.
But something else also happened: the train cut down the usual travel time between Liverpool and Manchester to less than half. Soon, the railway became the cornerstone of Britain’s Industrial Revolution and powered the most extensive and influential empire the world has ever seen.
AI has the potential for such pathbreaking efficiencies, too, but it could also change the nature of work in unprecedented ways.
Previous tech revolutions had replaced relatively lower income and lower skilled jobs. In return, several more jobs were created further up the ladder. Trains, for instance, rendered horse carriages obsolete. But over time, the sons of carriage-drivers learnt to operate steam engines, and the economic pie expanded on the whole.
What sets AI apart is that it is also upending higher income, higher skilled jobs. That means that while economic activity might expand, the jobs that AI is likely to create will be far more skill-heavy and potentially fewer in number. Those at the top will benefit disproportionately. The masses below will have few opportunities.
To make the most of this new beast, governments will have to find ways to preempt that inequality. Otherwise, millions could risk getting their feet caught in its tracks.
SynopsisTech companies cut over 27,000 jobs in August 2024, with major firms like Intel, IBM, and Cisco among those announcing layoffs. Intel plans to reduce its workforce by 15%, while Cisco is shifting focus to AI and cybersecurity. IBM is discontinuing R&D in China. Other companies like Infineon, GoPro, Apple, Dell Technologies, ReshaMandi, Brave, and ShareChat also announced significant job cuts.
Tech companies continued to cut jobs at a rapid pace in August 2024. More than 27,000 workers in the industry lost their jobs as over 40 companies, including big names like Intel, IBM, and Cisco, as well as numerous smaller startups, announced layoffs. To date, more than 136,000 tech workers have been laid off by 422 companies in 2024, indicating significant upheaval in the sector.
Intel
Intel is undergoing one of the most challenging periods in its history, announcing 15,000 job cuts, which represents over 15% of its workforce. These layoffs are part of a $10 billion spending reduction plan for 2025, spurred by a disappointing second-quarter earnings report and outlook. Annual revenues for the company fell by $24 billion between 2020 and 2023, despite a 10% increase in its workforce during the same time frame. CEO Pat Gelsinger stated, "Intel’s revenue growth shortfall is attributed to high costs and low margins, despite our leadership in the CPU chip revolution 25 years ago."
Cisco Systems
Cisco Systems has also announced it is laying off around 6,000 employees, or about 7% of its global workforce, as it shifts its focus to high-growth areas such as AI and cybersecurity. This is the company's second major round of job cuts this year. CEO Chuck Robbins remains hopeful about the future, noting efforts to pivot toward emerging technologies. "Cisco is optimistic about rebounding demand for our networking equipment," he said. The company is restructuring to capitalize on these technologies and has committed $1 billion to investing in AI startups. Additionally, Cisco recently acquired cybersecurity firm Splunk for $28 billion. As part of the restructuring, Cisco plans to consolidate its networking, security, and collaboration departments into a single organization.
IBM
IBM has decided to discontinue its research and development operations in China, leading to over 1,000 layoffs. Chinese media outlet Yicai reported on the situation, which stems from a decline in demand for IT hardware and difficulties in expanding within the Chinese market. IBM pledged that despite these changes, customer support in China will remain unaffected. "IBM will now prioritize serving private enterprises and select multinationals within the Chinese market," the company affirmed.
Infineon
Infineon, a German chipmaker, is also making significant cuts, with plans to reduce 1,400 jobs and relocate another 1,400 to countries with lower labor costs. CEO Jochen Hanebeck explained these measures were necessary due to third-quarter revenue falling short of expectations. "The slow recovery in target markets is due to prolonged weak economic momentum and excess inventory levels," he said, leading to a downgraded forecast for the third time in recent months.
GoPro
GoPro, the action camera manufacturer, will cut about 15% of its staff, totaling around 140 employees, as part of a restructuring plan. These layoffs aim to reduce operating expenses by $50 million from projected fiscal 2024 expenses.
Apple
Apple has laid off around 100 employees primarily from its services group, which includes the Apple Books app and Apple Bookstore teams, with some engineering roles also affected. The company is redirecting resources toward AI programs, seeing Apple Books as a lower priority now. However, Apple News remains a focal point. This is not Apple's first round of layoffs this year; previously, it cut 600 employees from its Special Projects Group and shuttered a 121-person AI team in San Diego in January. As of the last report, Apple had 161,000 full-time equivalent employees. Apple declined to comment on the latest layoffs.
Dell Technologies
Dell Technologies is reportedly reorganizing its sales teams, including establishing a new AI-focused group. Sales executives Bill Scannell and John Byrne mentioned in a memo that Dell aims to become leaner by streamlining management and reprioritizing investments. Rumors suggest that the company may have laid off about 12,500 employees, or 10% of its global workforce, but this has not been officially confirmed.
ReshaMandhi
ReshaMandi, a fabric startup based in Bengaluru, has laid off its entire workforce, according to sources cited by Entrackr. The company's website has been inactive for a week, coinciding with the resignation of its auditor. "It’s all over for ReshaMandi," a source said. "The company is struggling to pay liabilities and bear operational costs, including salaries, for the past several months."
Brave
Brave, a web browser and search startup, has laid off 27 employees across various departments, as confirmed by TechCrunch. This represents a 14% reduction from its estimated 191 employees. Brave previously cut 9% of its workforce in October 2023 due to cost management challenges in a difficult economic environment.
ShareChat
ShareChat, a social media company also based in Bengaluru, has cut around 30-40 jobs, or roughly 5% of its workforce, following a bi-annual performance review in August 2024.
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# Tech industry layoffs are ongoing and widespread, impacting companies like Google, Tesla, and Apple.
# CEOs at big tech companies blame the cuts on overhiring and a shift towards a smaller workforce.
Layoffs have been plaguing the tech industry since the start of 2023 — and for many companies, the cuts have continued into 2024 and aren't over.
A number of Big Tech companies have laid off staff this year, including Google, Tesla, Apple, and dozens more. Ironically, companies haven't been slowing down on innovation, with many releasing a constant stream of AI updates and product launches.
Mark Zuckerberg shared his theory on the first round of industry-wide layoffs in an interview with "Morning Brew Daily" in February. He said companies overhired during the pandemic due to e-commerce sales skyrocketing and had to cut back once sales returned to normal.
That seems to ring true for a lot of CEOs. Discord CEO Jason Citron also said in an employee memo in January that the company had increased its workforce by fivefold since 2020. Google CEO Sundar Pichai said in 2023 that the company experienced "dramatic growth" over the past two years, which led to hiring "for a different economic reality" than the present.
Salesforce CEO and cofounder Mark Benioff also relayed the same sentiment in a letter to employees announcing layoffs in 2023. He said as revenue increased during the pandemic, the company hired "too many people leading into this economic downturn."
But why are industry-wide layoffs still so widespread and ongoing?
We took a look at what CEOs have said about staff cuts to help us understand why it's still going on.
The less, the better
Zuckerberg said in the "Morning Brew Daily" interview that companies realized the benefits of being leaner, which led to more layoffs. Meta's an example of that — after thousands were cut in Zuckerberg's "year of efficiency," in 2023, the company appeared to make a comeback.
"It was obviously really tough. We parted with a lot of talented people we cared about," Zuckerberg said in the interview. "But in some ways, actually becoming leaner kind of makes the company more effective."
Google seems to be enacting a similar strategy this year. CEO Sundar Pichai told Bloomberg reporter Emily Chang in May that the company is removing some teams completely to "improve velocity."
The tech giant conducted multiple rounds of layoffs this year, with the most recent being in its Cloud unit at the end of May.
Wayfair's cofounders also seem to think the company operates better with fewer people. The company has conducted multiple rounds off layoffs since 2022 and most recently laid off 13% of its workforce in January.
CEO Niraj Shah and cofounder Steve Conine wrote in a letter to shareholders in February that several rounds of layoffs helped the company get more done at a faster rate and lower cost.
Jobs are being restructured for AI
Google's CEO also said in the Bloomberg interview in May that the company is "reallocating people" to its "highest priorities."
Some of those priorities include AI projects, like the creation of an ARM-based central processing unit, the advancement of Gemini, an AI-powered Search, and various updates to Google Workspace.
Google isn't the only one to restructure its workforce to make room for AI.
Microsoft CEO Satya Nadella explained similar reasoning in a memo last year and said the company would continue to hire in "key strategic areas."
Last May, IBM CEO Arvind Krishna said he could easily see 30% of HR and non-consumer-facing roles "replaced by AI and automation" in the next five years. The company conducted its latest round of cuts in March.
Dropbox CEO Drew Houston similarly said in a 2023 layoff announcement that its next stage of growth required a different set of skills, "particularly in AI and early-stage product development."
It's unclear how long the restructuring will last. But for the moment, tech companies don't seem to be slowing down on AI advancement.
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Dated: Jun 2024
Its been barely 50 days since new year 2024 began, and the tech industry has already suffered more than 30,000 layoffs. And with layoffs showing no signs of slowdown, Meta CEO Mark Zuckerberg has come forward with a theory to explain why tech layoffs are happening.
The billionaire says that companies are realizing that, while (layoffs are) painful, there are benefits to being "leaner." In an interview recently, the Meta CEO said companies are still adjusting to the post-pandemic era, as per Business Insider report.
E-commerce sales skyrocketed during the pandemic, leading to significant increases in online advertising revenue. However, sales growth slowed and ad rates returned to normal as consumers went back to the stores and the economy stabilized. Numerous businesses realized they had overhired and needed to make significant cuts, including Meta. That was the first wave of layoffs.
"In terms of the layoffs and stuff like that, I actually think that was more due to companies trying to navigate Covid," Zuckerberg said when asked if tech layoffs had to do with the AI boom.
What He Said About Meta's Layoffs
"It was obviously really tough, we parted with a lot of talented people we cared about," Zuckerberg said in the interview, speaking specifically about Meta's past layoffs. "But in some ways actually becoming leaner kind of makes the company more effective."
Following Zuckerberg's "year of efficiency," when Meta laid off tens of thousands of employees, the company has been steadily recovering.
As per Zuckerberg, businesses are still considering efficiency in their operations today. Many are thinking about changing the company's structure, reducing the number of management positions, and adopting a leaner business model.
More Than 30,000 Layoffs Have Happened In 2024
From Google, Amazon, to Microsoft, a lot of big companies have already announced the beginning of layoffs in 2024. Here's a list of companies that have laid off employees till date this year:
Instacart
Mozilla
Grammarly
Getaround
Amazon
DocuSign
Snap
Polygon Labs
Okta
Thinx
Proofpoint
Wattpad
Block
PayPal
Salesforce
Flexport
Microsoft
Swiggy
Aurora
eBay
SAP
Brex
TikTok
Vroom
Wayfair
YouTube
Pixar
Audible
Discord
Google
Amazon
Twitch
Treasure Financial
Duolingo
Rent the Runway
Unity
Pitch
BenchSci
Flexe
NuScale
Trigo
InVision
VideoAmp
Orca Security
Frontdesk
