Tech Job Cuts Set to Surpass Last Year’s Numbers Following Another Challenging Week

By Maggie On Jan 28, 2024

The tech sector is facing concerns as unemployment rises across the sector, raising concerns about the extent of potential layoffs this year compared to last year.

In a turn of events, this week saw unemployment rise to nearly 24,000 jobs. More than 10,000 tech professionals worldwide lost their jobs on Tuesday alone. Microsoft’s gaming company continued its disappointment by announcing it would cut another 1,900 jobs. While layoffs at tech companies are expected to be smaller and more targeted this year, especially as companies shift investments into artificial intelligence, data from tracking platform Layoffs. FYI shows that January expenses have already exceeded the company’s monthly average. Two years ago.

While it may be possible for some companies to pivot quickly at the start of the year and then return to business as usual, signs from major companies like Google and Amazon suggest that these organizations may continue to lay off employees.

An important aspect of this wave of layoffs is that its timing coincides with the company’s strengthening of its business in artificial intelligence (AI). In particular, major players such as Google, Amazon, Dataminr, and Spotify have been active in highlighting and celebrating advances in AI capabilities. These two approaches lead to discussion of the broader implications of intelligence and job performance.

In 2024, the number of technical layoffs will be not only numerous, but also more intense. Only 82 companies reported cutting nearly 24,000 jobs; More layoffs expected in 2023; An average of 99 companies lay off employees every month. Layoffs are concentrated at smaller companies, raising concerns about the overall health of the tech sector.