Tech layoffs are accelerating, according to recent data. The surge in staff cuts comes after reductions in human capital slowed so much in the back half of 2023 that it was thought to be a thing of the past. However, the situation has changed dramatically in 2024.
Key Takeaway
The surge of tech layoffs in 2024 is a real and significant trend, impacting both large and small tech companies.
The Changing Landscape
At the end of 2023, it was observed that rising tech valuations were alleviating some pressure off technology concerns, leading to a decline in layoffs. However, the beginning of 2024 has seen a reversal of this trend.
Impact on Companies
The recent wave of layoffs has affected tech companies of all sizes. Veho, a package delivery company, cut 65 people this week, representing about one-fifth of its total headcount. Even well-known and well-funded startups like Brex are undergoing layoffs, indicating the widespread nature of this trend. Major players like Microsoft and Google are also not immune, with significant workforce reductions being announced.
Historical Trends
Historical data reveals that tech layoffs hit a low point in September 2023 with just 4,707 layoffs across 65 known cuts. However, these figures rose in the following months, reaching over 8,000 in November and 7,000 in December, stemming from 72 and 56 known cuts, respectively.
