Tech Giant Layoffs Getting Worse, 23,670 People Unemployed

Jakarta, CNBC Indonesia – Layoffs are still occurring in the technology sector throughout early 2024. It was recorded that 23,670 people lost their jobs this January.

The report comes from According to reports, this number came from 85 technology companies and was the largest after last March when it reached 38 thousand people.

Several names have made layoffs, such as SAP on 8,000 employees and Microsoft cutting 1,900 positions in its games division. Apart from that, fintech startup Brex fired 20% of its staff and eBay laid off 1,000 people.

Amazon also does the same thing in several of its business units, such as Prime Video, MGM Studios, Twitch and Audible. Unity also laid off 25% of its employees and Discord laid off 17% of its employees.

The layoffs that occurred at the beginning of this year occurred because several companies had big plans for the future. Google, for example, chose to lay off many of its employees to invest in its priorities this year.

“We have ambitious goals and will invest in our big priorities this year. To create capacity for investment, we have to make difficult choices,” said Pichai, quoted from CNBC InternationalMonday (29/1/2024).

AI is also the reason why layoffs occur. DHI CEO, who owns the Dice recruiting platform, Art Zeile, explained that companies want to change their position through this technology.

“These companies want to reduce the number of employees associated with product lines or divisions that haven't been successful because they want to reposition for AI,” he explained.

Another reason is that the company wants to reduce several businesses that are considered too overlapping. This was done by Microsoft after the acquisition of Activision Blizzard.

[Gambas:Video CNBC]

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