Job Losses Mount as New Round of Layoffs Hits Tech Sector
Tech companies have already shed more than 34,000 jobs since the start of 2024.
- A number of tech companies, including Cisco, Mozilla, and Instacart, cut several jobs this week.
- The job cuts are anticipated to affect employees globally and continue the trend of tightening purse strings in specific products and domains.
This week, another round of mass layoffs by tech companies resulted in over 4,000 posts being axed, driven by an industry that is increasing its adoption of artificial intelligence technologies. Cisco led the pack with cuts of 4,250 posts out of its 84,900 employees at the end of 2023, accounting for 5% of its global workforce. Cisco had also cut 5,000 jobs in 2022.
The job cuts have been leading up to Cisco’s $28 billion acquisition of Splunk, which is set to be completed by April this year. Cisco CEO Chuck Robbins has stated that the cuts come as the company expects reduced demand for its products and services in the coming months owing to large-scale economic uncertainty.
See More: Big Tech Companies Start 2024 With New Round of Layoffs
Mozilla, the maker of the Firefox web browser, announced its intentions of cutting 5% of its global workforce. Similarly, Instacart announced a restructuring plan that will axe 7% of its global workforce. Both companies have stated the need to reinvest resources into specific new projects as a reason behind the layoffs, resulting in over 300 posts being made redundant overall.
Other tech giants, including Google and Amazon, have already made sizable cuts to their workforce since the start of 2024. Tech companies remain major money makers despite decreases compared to 2023; however, the growing adoption of AI tech is expected to continue impacting tech sector employment.
What do you think about job prospects in the tech sector in 2024? Let us know your thoughts on LinkedIn, X, or Facebook. We’d love to hear from you!
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