The layoffs in the tech sector don’t stop. After starting in 2023, many companies like Google, Microsoft, Facebook parent company Meta, and Amazon, among others, are continuing to cut jobs in 2024. Recently, Microsoft laid off a large number of people in product and program management roles, which impacted multiple teams and geographies. It is worth noting that despite these job cuts, major tech companies continue to launch new AI features and products. Here, we have listed some reasons why the CEOs of these tech giants have cited job cuts.
Meta heads towards ‘year of efficiency’
The parent company of Facebook, Instagram and WhatsApp is one of the first tech giants to announce job cuts. During the first wave of industry-wide layoffs, CEO Mark Zuckerberg said in an interview with the Morning Brew Daily in February that the company overhired during the pandemic and then realized the benefits of a smaller workforce, leading to more layoffs.
Thousands of employees were laid off in Zuckerberg’s “year of efficiency” in 2023.
“It was obviously very difficult. We let go of a lot of talented people who were dear to us. But in some ways, being leaner makes the company more efficient,” Zuckerberg said in the interview. (via Business Insider)
Job cuts due to ‘different economic reality’: Google CEO Sundar Pichai
For Google, the reasons are multiple and the company has carried out several waves of layoffs, the most recent taking place in its Cloud unit at the end of May.
In 2023, Google CEO Sundar Pichai said the company had seen “spectacular growth” during the pandemic, leading to hiring “for a different economic reality” than last year. Then, in May of this year, Pichai told Bloomberg that the company was cutting some teams entirely to “improve speed.”
He stressed that the first half of the year will see more job cuts, which will occur at a slower pace in the second half.
He noted that the company is also “reallocating staff” to its “highest priorities,” which include AI projects, such as building ARM-based processors, and developing and implementing Gemini into Google Apps and Google Workspace.
Microsoft to cut jobs for restructuring and investment in key areas
Google isn’t alone in restructuring its workforce to make room for AI: rival Microsoft has also “blamed” the new technology for job cuts.
Microsoft CEO Satya Nadella said in a note last year that while consumers are also optimizing their digital spending, the advent of new technologies is forcing the company to take such a stance.
“First, while we saw customers accelerate their digital spend during the pandemic, we are now seeing them optimize their digital spend to do more with less. At the same time, the next big wave of computing is emerging with advances in AI, as we transform the world’s most advanced models into a new computing platform,” Nadella said, adding that the company will continue to hire in “key strategic areas.”
Layoffs at IBM, Salesforce and other companies
In May 2023, IBM CEO Arvind Krishna predicted that AI and automation would replace 30% of HR and non-customer-facing functions within five years. The company laid off employees in March 2024.
Discord CEO Jason Citron mentioned in a January note that the company’s headcount has grown fivefold since 2020, which may be related to the recent layoffs.
Like Zuckerberg, Salesforce CEO Marc Benioff blamed the 2023 layoffs on overhiring during the pandemic. He said revenues had increased, but the economic downturn had required a smaller workforce.
Dropbox CEO Drew Houston said in a 2023 layoff announcement that their next phase requires a different skill set focused on AI and early-stage product development.
Meta heads towards ‘year of efficiency’
The parent company of Facebook, Instagram and WhatsApp is one of the first tech giants to announce job cuts. During the first wave of industry-wide layoffs, CEO Mark Zuckerberg said in an interview with the Morning Brew Daily in February that the company overhired during the pandemic and then realized the benefits of a smaller workforce, leading to more layoffs.
Thousands of employees were laid off in Zuckerberg’s “year of efficiency” in 2023.
“It was obviously very difficult. We let go of a lot of talented people who were dear to us. But in some ways, being leaner makes the company more efficient,” Zuckerberg said in the interview. (via Business Insider)
Job cuts due to ‘different economic reality’: Google CEO Sundar Pichai
For Google, the reasons are multiple and the company has carried out several waves of layoffs, the most recent taking place in its Cloud unit at the end of May.
In 2023, Google CEO Sundar Pichai said the company had seen “spectacular growth” during the pandemic, leading to hiring “for a different economic reality” than last year. Then, in May of this year, Pichai told Bloomberg that the company was cutting some teams entirely to “improve speed.”
He stressed that the first half of the year will see more job cuts, which will occur at a slower pace in the second half.
He noted that the company is also “reallocating staff” to its “highest priorities,” which include AI projects, such as building ARM-based processors, and developing and implementing Gemini into Google Apps and Google Workspace.
Microsoft to cut jobs for restructuring and investment in key areas
Google isn’t alone in restructuring its workforce to make room for AI: rival Microsoft has also “blamed” the new technology for job cuts.
Microsoft CEO Satya Nadella said in a note last year that while consumers are also optimizing their digital spending, the advent of new technologies is forcing the company to take such a stance.
“First, while we saw customers accelerate their digital spend during the pandemic, we are now seeing them optimize their digital spend to do more with less. At the same time, the next big wave of computing is emerging with advances in AI, as we transform the world’s most advanced models into a new computing platform,” Nadella said, adding that the company will continue to hire in “key strategic areas.”
Layoffs at IBM, Salesforce and other companies
In May 2023, IBM CEO Arvind Krishna predicted that AI and automation would replace 30% of HR and non-customer-facing functions within five years. The company laid off employees in March 2024.
Discord CEO Jason Citron mentioned in a January note that the company’s headcount has grown fivefold since 2020, which may be related to the recent layoffs.
Like Zuckerberg, Salesforce CEO Marc Benioff blamed the 2023 layoffs on overhiring during the pandemic. He said revenues had increased, but the economic downturn had required a smaller workforce.
Dropbox CEO Drew Houston said in a 2023 layoff announcement that their next phase requires a different skill set focused on AI and early-stage product development.
