The global technology sector is navigating a turbulent phase, with widespread job cuts continuing to impact thousands of professionals. Despite a slight slowdown in recent weeks, the year 2024 has seen a significant wave of layoffs, driven by corporate restructuring, cost pressures, and the accelerating integration of artificial intelligence (AI). According to data from the independent tracker Layoffs.fyi, 122,549 employees have been laid off from 551 tech companies so far.
Major Tech Giants Leading the Job Cuts
Some of the most significant workforce reductions have come from industry titans. In a historic move, e-commerce leader Amazon announced its largest-ever round of layoffs in October, cutting 14,000 corporate roles to redirect investments towards strategic areas, including AI. Similarly, Microsoft has outlined plans to eliminate a total of 15,000 positions through 2025, with a major restructuring in July affecting 9,000 employees.
In India, the news from Tata Consultancy Services (TCS) sent shockwaves through the IT sector. The country's largest tech firm announced a workforce reduction of approximately 2%, equating to nearly 12,000 jobs. While the company attributed the move to skills mismatch and an evolving business model, it occurred against the broader backdrop of an AI-driven industry shift.
The Artificial Intelligence Factor in Workforce Restructuring
The push towards AI adoption is a recurring theme in this year's layoffs. Salesforce CEO Marc Benioff confirmed in September that 4,000 customer support roles were cut with the help of AI, which he stated was already handling up to 50% of some work. Google laid off 100 design-related employees in October to accelerate its AI agenda, following similar cuts among AI project contractors.
Other companies are explicitly linking job cuts to AI integration for efficiency. PC maker HP plans to cut 4,000 to 6,000 jobs through fiscal 2028 to streamline operations and embed AI into workflows. Chipmaker Intel is progressing with a plan to reduce its core employee count from 99,500 to around 75,000. Even Meta announced layoffs of 600 employees in its AI division in October, aiming to build products faster.
Beyond AI: Cost-Cutting and Broader Industry Trends
Not all cuts are directly tied to AI replacement. Companies are also reacting to inflationary pressures and the need for operational efficiency. US wireless carrier Verizon announced in November it would lay off more than 13,000 employees in a major cost-saving drive. Germany's Siemens cut 5,600 jobs at its Digital Industries unit in March, representing over 8% of that division's workforce.
In rare moves for typically stable firms, Apple laid off dozens of sales staff in the US in November, and Instagram's parent company Meta proceeded with its AI division cuts. While some firms like Salesforce also report hiring in new areas, the overall trend points towards a cautious and reshaped hiring landscape in the tech world.
The data paints a clear picture of an industry in transition. As companies globally, including major Indian IT services players, grapple with rising costs and the transformative potential of artificial intelligence, workforce restructuring has become a common, albeit painful, strategy. The focus is shifting towards skills aligned with future technologies, leaving thousands of workers to navigate an uncertain job market.
