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Tech Industry Layoffs Continue into 2024 Tech Industry Layoffs Continue into 2024

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Layoff notice after spread of Covid-19 (corona virus), Crisis of the business recession during the Covid-19 outbreak.

Tarathip Kwankeeree

As the curtains draw on 2023, and the dust settles at the curtain rise for 2024, a wave of layoffs has begun sweeping through the tech sector once again.

Tech companies are tightening their belts, optimizing their operations, and responding to a cooling labor market, all in an effort to stay afloat.

The most recent jobs data indicates the U.S. unemployment rate is at a near 50-year low, standing at 3.7%. However, job gains have shown a marked deceleration in recent months, with employers adding 105,000 workers to payrolls in October, 173,000 in November, and 216,000 in December, all falling below the monthly average of 225,000 for 2023, as per the Bureau of Labor Statistics.

Seeking Alpha has compiled a list of public tech companies that have announced staff reductions so far in the new year.

Google’s Ongoing Streamlining Efforts

Google (NASDAQ: GOOG) (NASDAQ: GOOGL) recently confirmed that it is set to lay off hundreds of employees across its voice assistant, hardware, and engineering teams.

“Throughout the second half of 2023, a number of our teams made changes to become more efficient and work better, and to align their resources to their biggest product priorities,” a Google spokesperson said. “Some teams are continuing to make these kinds of organizational changes, which include some role eliminations globally.”

Additionally, it was reported that Fitbit co-founders James Park and Eric Friedman were leaving the company following Google’s acquisition of Fitbit for $2.1 billion in 2021 amid fierce competition with the Apple Watch.

Alphabet, Google’s parent company, also initiated several cuts in 2023, including an announcement in January to eliminate roughly 12,000 jobs.

Unity Software’s Struggle for Stability

Unity Software (NYSE: U) declared earlier this week that it would be slashing 25% of its workforce as part of a restructuring effort to refocus its core business for long-term and profitable growth.

About 1,800 employees will be affected by the layoffs. The company cited a lack of ability to reasonably estimate the costs and charges associated with this reduction, which are expected to be largely incurred in the first quarter of 2024.

Despite an increase in revenue, Unity has faced challenges in turning a profit, leading to a 20% decline in its share value over the past six months.

Amazon’s Workforce Reductions in Media and Entertainment

Amazon (NASDAQ: AMZN) is preparing to trim its media segment, with several hundred employees set to be impacted in the Prime Video unit and at MGM Studios.

Reports also indicate that the company will be cutting 35% of its workforce at Twitch, affecting approximately 500 employees, and 5% of its Audible workforce.

Similar to its peers, Amazon also saw various workforce reductions in the previous year.

Xerox’s Restructuring Plan

Xerox (NASDAQ: XRX) recently announced plans to reduce its workforce by 15% in the first quarter of this year.

The job cuts are part of the company’s restructuring plan, aimed at aligning resources into three key areas: improving and stabilizing the core print business, increasing productivity with a new Global Business Services organization, and focusing the Digital Services and IT Services capabilities towards more profitable markets.

This reshaping comes in the wake of a 6% year-over-year drop in third-quarter sales for the company.

Seeking Alpha’s Christiana Sciaudone, Josh Fineman, Ravikash Bakolia and Amy Thielen contributed to this story.

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