Mumbai, May 12: Tech layoffs in 2024 have affected thousands of employees, multiple job roles and leading to department shutdowns. Many tech giants have reduced employee headcounts due to restructuring, cost-cutting or slow sales. Despite a wave of tech layoffs, a report said the tech industry had been unabated. However, the rising threat of layoffs reportedly signalled a change in the economic landscape. According to a report, the tech industry might see more than 2,000 layoffs in countries including India. 

In 2024, we have seen layoffs initiated by tech giants like Google, Meta, Amazon, Paytm, BYJU's and most recently Tesla layoffs which affected thousands of global employees. All of these workforce reduction decisions were attributed to factors such as consumer demand shifts, economic downturn, restructuring plans, cost-cutting, automation or adoption of AI and technological changes. According to a report by Indian Express, the job cuts initiated by the tech companies could likely have long-lasting effects. Simpl Layoffs: Fintech Startup Lays Off Around 100 Employees in Restructuring Exercise, Affected Will Receive Severance Pay of Two Months; Check Details. 

According to the report, sectors other than tech, such as healthcare and finance, were also affected by the layoffs. The report highlighted an example of a vacation rental company called Vacasa located in Oregon, US, that cut 13% of its workforce, about 800 people, amid reorganising its operations. In San Diego, a health-tech company called Cue Health reportedly laid off half of its staff, around 230 employees. 

In India, due to restructuring exercises, fintech startup Simpl laid off 100 employees and promised them two months' severance pay. Another Indian company, PrepLadder, owned by Unacademy, handed pink slips to its employees and announced to shift its sales strategy. 

Tech Layoffs in 2024; Reasons, Effects and Opportunities

Cutting costs has become a priority for companies from different sectors amid the global economic slowdown. The report mentioned that many customers changed their preferences after pandemic, which affected the fitness and travel industry. On the other hand, the report emphasised that AI automation and technological advancement witnessed rapid advancement, which was good for the companies but bad for their employees. Most notably, the restructuring exercise followed by this trend was seen in the finance and tech sectors. 

Besides the technology and finance sectors, the cryptocurrency industry reportedly struggled due to market pressure, volatility and scrutiny from regulatory authorities. The report said such a crypto industry company Bakkt, located in Atlanta, reduced 28 headcounts. The report by Indian Express said widespread layoffs could have a "cascading effect" on the economy. The recovery from this effect would reportedly be slower due to the post-pandemic downturn. Motional Layoffs: Self-Driving Technology Company Lays Off 40% of Its Workforce in US, Postpones Robotaxi Plans Amid Restructuring.

The report suggested that while the recent increase in workforce reduction might be concerning; however it could also hold moments for growth and new opportunities. The Indian Express advised the impacted people to adapt, find ways to reinvent, and said to remember, "value extends far beyond your current situation."

(The above story first appeared on LatestLY on May 12, 2024 07:43 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).