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October 2024 marked a period where further job cuts affected major corporations across the tech industry, following a developing trend that began in previous years. As compiled by Layoffs.fyi, the site that puts together data on job eliminations, the tech industry faced more than 3,600 layoffs, contributing to the total of over 140,000 layoffs in 2024. The big guns – Dropbox, Upwork, Meta, Samsung, and TikTok – also scale massively down, highlighting the constant pressure many tech companies feel nowadays in the rather hard marketplace.
Dropbox Sets the Pace for Cuts
With a planned 20% cut, which may affect about 528 employees, Dropbox made the announcement. This decision, according to CEO Drew Houston, is a necessity anyway in a transitional phase of the company. This reflects the struggle the technology company faces when it comes to not only making profits but also adapting to rapid changes that occur within the industry.
Small Business Impact
The layoff wave has not been confined to large companies. The case of Upwork, for instance, involves the cutting down of its workforce by 21%, which would amount to a savings of about $60 million annually. CapWay, a fintech startup, had to shut down completely, as communicated by its founder, Sheena Allen, through her LinkedIn account. Eaze, a cannabis delivery service, is also winding down operations while letting go of 500 workers due to the troubled California cannabis market.
Global Reach of Job Cuts
TikTok is reportedly laying off hundreds of employees, principally from Malaysia, since it intends to begin using AI in moderation of the uploaded content. Samsung has declared layoffs in Southeast Asia and Australia affecting 10% of its workforce in the regions, though it did not disclose the exact number.
Restructuring and Strategic Changes
The organisations concentrate on long-term goals and outlook. Meta is trimming down its workforce across several teams, including Threads and recruiting, as it seeks to realign its resources. Similarly, ConsenSys has also let go of 20% of the workforce due to Ethereum market challenges. Such strategic layoffs reflect a common trend among tech firms that are reevaluating their operations after biting economic pressure and rising trend for AI and automation.