Global tech layoffs plunge 42% as industry stabilizes: report
NOIDA, INDIA — The year 2024 marked a significant recovery for the tech industry, with layoffs declining by 42% compared to the turbulent year of 2023.
According to an Indian Express report, over 260,000 employees were laid off by 619 companies this year, a sharp improvement from the over 1,200 companies that downsized the previous year. This decline signals a stabilization in the sector following two years of aggressive workforce reductions.
The layoffs of 2023 were largely driven by economic challenges, including inflation, rising interest rates, and reduced consumer spending. Over-hiring during the pandemic also contributed to the crisis.
However, in 2024, companies shifted their focus toward long-term growth and innovation, particularly in areas like artificial intelligence (AI), which created new opportunities in fields such as machine learning and data science.
Big tech layoffs: Intel and Tesla make headlines
Despite overall improvements, some major players continued to downsize. Intel announced plans to cut 15,000 jobs—15% of its workforce—as part of a $10 billion cost-saving initiative aimed at addressing high costs and stiff competition in the semiconductor industry. CEO Pat Gelsinger explained that these layoffs were necessary to improve margins and streamline operations.
Tesla also faced scrutiny after reducing its workforce by over 21,000 employees across multiple rounds of layoffs. CEO Elon Musk attributed the cuts to weakening demand for Tesla vehicles and increased competition in the electric vehicle market.
While Musk defended the layoffs as essential for maintaining efficiency and innovation, his leadership style drew criticism from employees who shared their experiences on social media.
Quarterly trends: Uneven layoffs reflect market shifts
Layoff trends throughout 2024 revealed shifting market dynamics. The first quarter saw the highest job cuts, with January alone accounting for over 34,000 layoffs. However, layoffs steadily declined over the year, with significant drops in the final quarter.
December recorded just 2,268 layoffs—the lowest monthly figure of the year—indicating that many companies had completed their restructuring efforts and were focusing on stability and growth.
2024: A year of reset for tech
As 2024 concludes, it stands out as a year of reset for the tech sector. While challenges remain, declining layoffs and renewed hiring in high-growth areas like AI signal a more stable future for the industry.
The focus on innovation and strategic realignment suggests that tech companies are adapting to evolving market conditions while preparing for sustained growth ahead.
