The tech industry continues to reel under layoffs as more and more companies are sacking staff from across departments. Amazon, Apple, and Byju’s are some big names that have already laid off their staff in the past few weeks. Most companies have attributed the usual reasons, such as overhiring during the pandemic era, strategic shifts, downsizing, etc.
Based on Layoffs.fyi, so far 235 companies have laid off 57,785 employees in 2024. In January, 121 companies sacked 34,007 employees, and in February 74 companies axed 15,379 jobs. Although March saw a substantial decrease in layoffs, the month was marked by the biggest layoff from Dell with the company reducing its workforce by 13,000 jobs.
Even though tech layoffs are on a bit of a decline, the crisis persists in the tech industry. Be it the adoption of AI or companies prioritising their key objectives, the ongoing global economic slump is casting aspersions on the future of millions of professionals. Distraught employees who have been laid off have been desperately looking for opportunities, read our feature on their woes here.
Here is a look at the latest layoffs this week:
Amazon cuts 100s of jobs
The e-commerce giant, Amazon Inc is slashing hundreds of jobs in its cloud computing division according to a report in Bloomberg. The fresh round of layoffs is likely to impact sales and marketing employees and the team that has been developing technology for brick-and-mortar stores. The Amazon Web Services spokesperson said that the company has identified a few targeted areas of the organisation that need to be streamlined in order to continue focussing on its efforts in the key strategy areas that the company believes will deliver maximum impact. It needs to be noted that the company cut down over 27,000 corporate roles following that pandemic-era hiring boom.
Byju’s sacks 500 staff
Indian multinational edtech company, Byju’s, which is reportedly cash-strapped, is laying off about 500 of its employees. This is nearly 3 per cent of its total workforce of around 15,000 employees. The latest round of layoffs is attributed to a restructuring exercise as the company is reportedly suffering from a severe funding crisis, unrest among investors and tenders, along with a markdown in its valuation.
The latest round of layoffs impacts, sales, marketing, and teaching roles at the edtech firm. In 2023, the company fired about 4,500 employees as part of its restructuring, which is still underway. According to reports, in the latest round, human resource executives terminated employment via phone calls that were followed by an email. The company reportedly initiated the exit process almost immediately informing the staff that their last working day was the day when they were informed.
Apple cuts 600 jobs
Meanwhile, Apple has let go of over 600 employees in California, US as part of its recent decisions to shut down its car and smartwatch display projects, based on its filings with the California Employment Development Department. Towards the end of February, Apple began to shutter its initiatives after they failed to take off as expected. Reportedly, the car project was cancelled amid indecision among executives over its direction and costs. On the other hand, the display program was shut down owing to engineering, supplier, and cost challenges.
Lightspeed Commerce
Canada-based payments firm Lightspeed Commerce will cut as many as 280 jobs. The company is moving ahead with the layoffs as part of its larger reorganisation and cost-reduction plan. The layoffs will help the company to reduce about 10 per cent of its headcount-related operating expenses. The company said that this will allow for more investments in other areas that are key to profitable growth.
The road ahead is uncertain for companies across the industry. Regardless of the ongoing challenges, economic concerns, and upheaval caused by the rapid adoption of AI technologies, it remains resilient. There is also a continued demand for skilled professionals, encouraging more and more people to upgrade their skills.
Job loss is a serious concern, as thousands of livelihoods are impacted. Even though job loss comes with another set of individual issues, upskilling and finding ways to stay updated and optimising personal finances can be a great way to brave the change.
On the organisational level, companies need to prepare themselves better for unforeseen situations, draft employee-friendly policies, and find ways to manoeuvre through crises without losing substantial headcounts.
Source: https://indianexpress.com/article/technology/apple-byjus-amazon-layoffs-tech-sector-9252782/