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HomeLatest NewsUSA NewsLayoff Epidemic Hits Tech: Industry Faces Tough Decisions Amidst Change.

Layoff Epidemic Hits Tech: Industry Faces Tough Decisions Amidst Change.

Layoff Epidemic

Tech industry layoffs increase in the second month of 2024.

More than 120 IT companies have cut off over 32,000 workers in the first five weeks of 2024, according to Layoffs.fyi. Tech companies laid off 260,000 in 2023, according to the tracker.

Tech companies are slashing jobs to minimize expenses, enhance efficiency, and respond to a cooling labor market. Companies are always pressured to increase earnings.

The U.S. Bureau of Labor Statistics reported 353,000 new employment in January.

Seeking Alpha lists public tech companies that have trimmed early this year.

Snap’s decision
Snap (NYSE:SNAP) filed an SEC filing on Monday to cut its global workforce by 10%, or 500 workers.

After trade, Evan Spiegel’s company releases fourth-quarter earnings on Tuesday. Analysts predict $0.06 EPS on $1.38B revenue.

Snap rose 57% in six months. Snap added almost 7M paying subscribers in December. Better advertising trends and its Amazon alliance have helped it.

Okta Cuts 7% of staff
Last Thursday, cybersecurity firm Okta (OKTA) laid off 400 employees, or 7%.

The San Francisco-based corporation estimated that staff severance and benefits would cost $24M.

Okta stocks have fluctuated, rising less than 1% in the past year.

Zoom reduces staff by 2%
Last Thursday, Zoom (ZM) announced 150 job cuts, or 2% of its staff.

Zoom laid off 1,300 employees (15%) in 2023. The corporation anticipated “uncertainty of the global economy.”

Zoom shares fell 12% last year.

Salesforce cuts 700
CRM lay off 1%, or 700 staff, in the last week of January. After 8,000 layoffs in 2023, this happened.

Marc Benioff, Salesforce CEO, said the mass terminations were due to hiring “too many people” before a recession.

Salesforce stock rose 65% last year.

PayPal suspends thousands
PayPal (PYPL) CEO Alex Chriss began one of the largest tech industry employment cutbacks late last month to cut costs and boost earnings.

“We will become leaner, more efficient, and more effective, driving greater velocity, innovation, and impact for customers,” Chriss.

PayPal will lay off 9%, or 2,500 workers. To boost growth, the corporation is focusing on AI.

Over the past year, PayPal has fallen 28%.

This year, Google (NASDAQ:GOOG) confirmed plans to lay off hundreds of employees, Wayfair (W) cut 1,600 employees, Microsoft (MSFT) fired 1,900 gamers, and eBay (EBAY) cut 9%, or 1,000 full-time workers.

Over the past year, Google shares rose 33%, Wayfair fell 31%, Microsoft rose 53%, and eBay fell 17%.

German software company SAP laid off the most people in the new year. Its restructure will impact 8,000 workers. Xerox plans to lay off 15% of its workforce this year.

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