2024 has been a wake-up call for tech. Those same companies that couldn’t hire fast enough during the pandemic are now shedding thousands.
The digital industry that soared during the pandemic boom—thanks to remote work, new products, and massive hiring—finds itself pulling back. So, who’s been hit hardest? And will it get better?
Let’s dive in.
Major Tech Layoffs in 2024: Which Companies Are Firing the Most?
Microsoft, Google, and Meta have made headlines in 2024 with thousands of layoffs.
Microsoft axed 1,900 gaming jobs in January 2024—8.6% of the entire gaming division. This came just three months after buying Activision Blizzard for $68.7 billion.
Meta, still chasing that metaverse dream, let go of entire teams across Instagram, WhatsApp, and Reality Labs in October. This is on top of 10,000 layoffs and pulling 5,000 open roles in 2023.
Google? Cuts all year. In May, they slashed jobs in their Cloud unit, with close to 100 people impacted. Intel, however, has taken the biggest hit so far. They announced a massive 15% cut of their global workforce—about 15,000 jobs gone.
Why are so Many Tech Layoffs Are Happening?
There’s no single reason for the storm of layoffs that has raged in 2024. The issue goes beyond the threat of AI—there are several significant factors involved:
Overhiring during the pandemic
The pandemic sparked a hiring frenzy. Everyone was riding high on digital everything—remote work, online shopping, endless Zoom calls. Tech companies thought the demand for digital would only increase. But then, the bubble burst.
That massive surge didn’t last. The world is adjusting back to pre-pandemic norms, and suddenly, companies have too many employees for the new reality. They hired for a future that never fully showed up. Now, the layoffs are hitting hard
Inflation and higher interest rates
Inflation is affecting more than groceries. Tech is also feeling the heat.
With the Federal Reserve jacking up interest rates in 2022, the era of cheap money is over. Back when borrowing was practically free, tech companies went all in, scaling fast, fueled by low-interest loans.
Those days are gone, however. Paying off debt got a lot more expensive, and investors want profits, not promises of future growth. As a result, companies are slashing headcount and cutting costs.
The rise of AI
Whether the job market likes it or not, AI has a significant part to play. Since OpenAI, AI has grown more capable. This growth shows no sign of stopping. So, it might explain why a company like IBM have used AI to replace 8,000 jobs. Or why Duolingo swapped 10% of contractors for algorithms.
Even the big guns like Google and Meta are shifting gears, ditching moonshots in favor of AI advancements. The cold, hard truth? Machines are edging out humans in areas like customer service and coding. If you’re not adapting and gaining essential skills to work with AI, you might be on the chopping block.
Outsourcing and offshoring
Why keep an expensive local team when you can hire overseas for a fraction of the cost? That’s the question every tech CEO is asking. Jobs like content and data processing are heading to countries with cheaper labor.
This isn’t new. But it’s ramping up. Companies need to cut costs, and outsourcing is the quickest fix. Plus, it’s scalable. You can grow fast without dealing with payroll headaches. But here’s the catch: many of those jobs don’t come back. When they move offshore, they’re usually gone for good.
How the Layoffs Have Affected People
These layoffs aren’t just headlines. They’re real. Real people with bills to pay. For affected people, anxiety is through the roof, and it’s not only about the income. The tech job market is packed, and the pool of opportunities? Shrinking.
Engineers, developers, project managers—everyone’s scrambling for fewer roles. In places where tech jobs dominate, entire communities feel the strain. Severance might cushion the fall, but it doesn’t stop the stress. Bills pile up. Finding another gig, often at a pay cut, isn’t easy.
The emotional toll is very real. For many people in tech, work is identity. When that’s gone, it’s personal. Suddenly losing the promise of growth, security, and boom in a supposedly stable career can be a bit much to handle. For a lot of professionals, it means their families are left hanging, and years of career building now look uncertain.
Early Signs of a Layoff: How to Increase Your Job Security
Layoffs don’t always sneak up. Look closely, and the signs are there. Budget cuts? Canceled projects? Hiring freezes? That’s your cue. If your manager’s distant, communication thins out, or there’s talk of “restructuring”—stay alert.
So how do you keep your job? By making yourself indispensable. Learn new skills and show them off. Be proactive and showcase your impact. Build relationships beyond your team. The more visible and valuable you are, the harder it is to let you go.
How to Cope After Being Laid Off: What’s Next?
Getting laid off stings. No doubt about it. But panic won’t help. Here’s what you can do:
- Review your severance and understand your unemployment benefits.
- Now’s not the time to blow through savings, so cut back, budget smart.
- Take a breath and reassess your goals. Maybe this is the push you needed to go after the role you’ve always wanted. Update your resume, polish that LinkedIn, and start networking.
- Use this downtime to sharpen your skills. Online courses can give you an edge.
- Don’t limit yourself to tech. Other industries—like home improvement and manufacturing—are hungry for workers and have been hiring more since the pandemic. A New Berlin interior painting company I know has been beefing up its staff since 2022. This has been the case for many skilled trades and home service businesses.
What Do These Layoffs Mean for the Future of Tech?
The recent wave of layoffs is a reality check. It tells us that the era of “grow at all costs” is over. Companies are cutting back because investors are demanding profitability, not just growth. For employees though, it’s a grimmer reality, and the tech industry needs to reevaluate how it treats its workforce.
Sure, there will always be a pool of eager talent to choose from, but businesses stand more chance of fostering growth, passion, and innovation by cultivating a positive and non-toxic work environment.
As a former middle manager, it’s clear as day to me that the focus is shifting from expansion to efficiency. Professionals should be aware of this. Leadership is drifting to leaner work cultures and trying to do more with less. It’s a wake-up call to focus more on upskilling than ever and acquire more vital competencies.
Layoffs are a sign that the bubble might be tightening, but it doesn’t mean tech is doomed. In fact, it’s a recalibration. Companies are getting smarter about how they spend and where they invest. In the long run, it could lead to healthier, more sustainable businesses. But in the short term? It’s tough.