Snap, Octa to Amazon, tech layoffs continue to rock industry with 32,000 job cuts

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The tech industry is set for another round of job cuts in 2024, pulling back further after widespread layoffs last year. So far, about 32,000 tech workers have lost their jobs in 2024, according to Layoffs.fyi, a startup that tracks job cuts in the industry since the pandemic.

Snap Inc. In the latest example, it announced on Monday that it is cutting its workforce by about 10%, or about 540 employees. Earlier this month, software company Okta Inc. It said it would lay off 7% of its staff to cut costs, affecting about 400 employees. Amazon.com Inc., Salesforce Inc. And the list goes on, including big tech employers like Meta Platforms Inc.

This year, “tech companies are still trying to adjust to their over-hiring during the pandemic surge, with both the high-interest-rate environment and the technology downturn lasting longer than initially expected,” Roger Lee, founder of Layoffs.fyi, wrote in a letter. Email.

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According to Lee, there have been two major waves of job cuts in recent years. “Early Covid” spike and “interest rate hike” effect from first quarter to second quarter of 2020, continuing from second quarter of 2022. “Layoffs this year are generally smaller and more targeted than layoffs a year ago,” Lee said.

Although economic factors are the main reason for tech layoffs, Lee noted that many companies cite the race for artificial intelligence as a factor in their focus on AI talent. According to a CompTIA analysis that tracks employment trends in the tech industry, “job postings requiring artificial intelligence or AI expertise increased by 2,000 to 17,479 from December to January.”

So while the industry is shedding some jobs, it is also hiring aggressively in others. There were 33,727 active job postings in January, the largest monthly increase in 12 months, according to CompTIA.

“Most of the layoffs are done and companies are going to start picking up,” said Bert Bean, chief executive officer of staffing company Insight Global. “But it's still very uncertain.” He expects the market to remain the same for the next two quarters, “until the Fed really comes out and starts cutting interest rates.”

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