Tech Layoffs Surge in 2024: 80,000+ Jobs Cut Across 279 Companies

The tech industry is facing a wave of layoffs in 2024, with 279 companies cutting over 80,000 jobs globally as of May 3. Notable companies conducting layoffs include Sprinklr, Peloton, Google, Tesla, and Ola Cabs. Sprinklr, a customer experience management platform provider, has confirmed laying off around 116 people, or 3% of its workforce, to realign its customer operations team.

Why this matters: The widespread layoffs in the tech industry have significant implications for the global economy, as they can lead to a decline in consumer spending and a ripple effect on other industries. Furthermore, the layoffs may also impact innovation and progress in the tech sector, as talented employees are let go and projects are put on hold.

Peloton has laid off 400 employees, approximately 15% of its staff, as part of a cost-reduction effort. Google has cut 200 employees from its core organization, which includes engineering talent and key teams. Tesla has laid off hundreds of employees, including its entire charging team, just weeks after reducing 10% of its global workforce. Ola Cabs has also laid off at least 10% of its workforce as part of a restructuring process.

In a statement, a Sprinklr spokesperson said, "Sprinklr made the strategic business decision to realign our headcount across our customer operations organization. While these decisions are hard to make, they reflect the commitments we've outlined to restructure our business to accelerate our go-to-market efficiencies and better serve customers." As of January 31, Sprinklr had 3,869 employees worldwide, with 787 in the U.S. and 3,082 internationally, including 2,276 employees in India.

The current wave of layoffs in the tech industry comes after a significant workforce reduction in 2022 and 2023, when tech companies worldwide laid off more than 425,000 employees as a global slowdown hit the IT/Tech and startup ecosystem. The reasons for the layoffs vary from company to company but generally include organizational restructuring, cost reduction, and shifts in priorities.

As the tech industry grapples with the impact of these layoffs, the human toll is significant. Laid-off employees are advised to acknowledge their feelings, prioritize mental and physical health, assess their financial situation, update resumes and LinkedIn profiles, and start networking. Remaining employees may experience a drop in morale and should seek support from colleagues and managers. Despite the challenges, the tech industry is expected to continue evolving and innovating in the years ahead.

Key Takeaways

• 279 tech firms laid off over 80,000 employees globally in the first 4 months of 2024.
• Notable companies conducting layoffs include Sprinklr, Peloton, Google, Tesla, and Ola Cabs.
• Layoffs can lead to a decline in consumer spending and a ripple effect on other industries.
• Tech companies laid off over 425,000 employees in 2022 and 2023 due to global slowdown.
• Laid-off employees advised to prioritize mental/physical health, update resumes, and start networking.