Tech Layoffs 2024: May sees massive decline in job cuts, dropping to 9k from April’s 21k

This year so far, 304 tech companies have laid off 89,193 employees from across the industry.

Which sector was the most affected?

Based on the recent trends, it seems the transportation industry was the most impacted by layoffs in May 2024. Multiple companies in the segment announced large-scale layoffs. Lucid Motors, Rivian, and Fisker were among the top companies that slashed their workforce. 

While Lucid Motors laid off 400 employees, accounting for 6 per cent of its workforce, Rivian cut jobs on two separate occasions within the month, affecting 120 employees on May 10, and another 150 on May 3. Fisker also contributed to the industry’s job losses with layoffs on May 29 and April 29, though the exact number of layoffs in May was not specified​​. Roughly over 1,200 people were handed out the pink slip in May. 

Potential reasons

When it comes to layoffs in May, it seems there have been multiple factors that prompted companies to take extreme measures. One of the major reasons is the economic uncertainty and the ever-fluctuating market conditions. It is to be noted that in the last 18 months, several companies have been struggling to maintain their profitability as they were impacted by rising operational costs, shifting consumer demand trends, etc. Moreover, the recent advancements in automation and technology has caused many companies to restructure their setups and aim to increase efficiency and decrease labour costs. 

It needs to be noted that Lucid Motors and Rivian, both electric vehicle manufacturers, decided to layoff employees as they have been reportedly impacted by the disruptions in supply chain. It seems most of these companies are under constant pressure to innovate and reduce costs along with meeting environmental regulations. These could be factors that may have forced these companies to make firm decisions including reducing the workforce. 

Other sectors and way forward

In May, it was not just the transportation sector that witnessed layoffs. Education, healthcare, and finance sectors saw significant layoffs too. While Guild, an education company, laid off 300 employees, about 25 per cent of its workforce, Cue Health in San Diego announced two rounds of layoffs, affecting 180 employees on May 22 and 230 employees on May 3. Meanwhile, in the finance sector job cuts were announced in companies like Wefox in Berlin, which laid off 60 employees, and Mainvest in Boston, which witnessed a 100 per cent reduction in its workforce​​.

When it comes to the tech industry, the biggest name Google saw multiple rounds of layoffs. On May 10, the company sacked 57 of its staff, and on May 1, it laid off 200 employees. This is in addition to the 57 employees that it let go on April 30. 

Although the layoffs highlight the ongoing challenges faced by various industries, it needs to be noted that the number of layoffs being reported is on the decline. It could be possible that companies are finally putting in efforts to efficiently manage priorities without impacting existing jobs. It cannot be denied that there is an economic uncertainty, technological advancements like AI, and competitive pressures for companies. However, as the market continues to evolve, companies must adapt and find sustainable solutions.