Tech Layoffs Predictions 2024: More Than 130,000 Layoffs This Year

With 136,000 tech jobs disappearing from more than 420 companies in 2024, many are beginning to question whether the fear of missing out on the artificial intelligence ‘Gold Rush’ is driving companies to make massive investments in AI at the expense of their workers.

240,000 tech jobs disappeared in 2023. At the time, big tech blamed everything from economic uncertainty to the need to recalibrate after the recruitment surge during the pandemic. But the worrying tech trend has continued into 2024.

The pace of tech sector layoffs was played out in our newsfeeds with stories that Intel, IBM, Apple, and Cisco contributed to the axing of 27,000 tech workers in August 2024 alone.

But it’s not all doom and gloom. Despite the large numbers, tracked on layoffs.fyi, we are beginning to see the emergence of new job roles and opportunities waiting on the horizon, as we will explore below.

Table of Contents Table of Contents

1. Key Takeaways
2. Tech Layoffs 2024: Major Cuts
3. AI Promises vs. Layoff Realities
4. How Tech Giants Are 'Betting the Company' on AI
5. When Will Tech Layoffs Stop?
6. Future-Proofing Your Career
7. The Six-Fold Rise of Data Jobs in the Tech Industry
8. The Bottom Line
9. FAQs
10. References

Show Full Guide

Table of Contents

1. Key Takeaways
2. Tech Layoffs 2024: Major Cuts
3. AI Promises vs. Layoff Realities
Show Full Guide
4. How Tech Giants Are 'Betting the Company' on AI
5. When Will Tech Layoffs Stop?
6. Future-Proofing Your Career
7. The Six-Fold Rise of Data Jobs in the Tech Industry
8. The Bottom Line
9. FAQs
10. References

Tech Layoffs 2024: Major Cuts

In a summer of discontent, thousands of tech workers faced further layoffs as companies continued trimming their workforce while heavily investing in AI. Here at Techopedia, we have been tracking tech layoffs.

One of the most recent tech layoffs is Cisco’s announcement of its controversial restructuring plan. This plan removes around 7% of Cisco’s global workforce, equating to around 6,300 jobs.

Cisco stated that the move would allow the tech company to invest in growth opportunities and drive more efficiencies.

But if you peek behind the press release, the job cuts come just two months after Cisco announced it was spending $1 billion on AI startups.

Intel revealed in August that it would be axing 15% of its workforce, resulting in the loss of 15,000 jobs. This makes it one of the biggest tech layoffs we have seen so far.

It was also reported that in a previous conference call with analysts, Intel CEO Pat Gelsinger had said that investing in the AI PC market would pressure its profit margins in the short term, but it should benefit the company in the long term.

“We believe the trade-offs are worth it. The AI PC will grow from less than 10% of the market today to over 50% in 2026.”

Last year, IBM said it would look to replace 8,000 jobs with AI — with CEO Arvind Krishna hinting that AI and automation could replace up to 30% of back-office roles within five years.

In August of this year, the tech giant revealed it was calling time on its research and development operations in China, leading to over 1,000 job losses as it focused on an AI integration drive.

Apple axed 100 jobs in August, which impacted the digital services division, primarily affecting teams responsible for the Books and News apps.

Earlier in the year, Apple called time on its autonomous car division, which affected up to 1,400 employees. After this, Apple canceled the electric car project and shifted its focus to AI.

Salesforce axed 300 in July 2024, following 700 roles earlier in the year, and that move followed a staggering 10% reduction in staff in early 2023.

The company referred to the cuts as ‘restructuring’ to serve customer needs better.

Intuit, which is behind TurboTax and QuickBooks software, also announced plans to reduce headcount by 1,800 workers. The company said it plans to rehire a similar number, but this time with employees well-versed in AI.

AI Promises vs. Layoff Realities

Many tech leaders selling AI solutions have attempted to ease job displacement fears caused by AI. For example, almost every tech CEO can be heard at tech conferences calling the technology a friendly ‘co-pilot’ that will augment human workers’ productivity rather than replace them.

At the same time, their actions in their organization involve thousands of job cuts. Klarna’s co-founder and chief executive Sebastian Siemiatkowski has adopted a much more honest approach by admitting Klana has 1,800 employees it hopes AI will render obsolete. But the real reason behind tech layoffs is more complex.

How Tech Giants Are ‘Betting the Company’ on AI

History taught us that no company is too big to fail. For example, after 70 years, only 49 companies remain in the original Fortune 500.

But if we focus on the age of digital disruption, 52% of Fortune 500 companies have disappeared in the last 20 years.

The strategies that helped big tech build their success are no longer working. The rules have changed, and large enterprises are forced to look beyond short-term growth. Who will be the Amazon, Google, and Facebook and dominate the AI era in 5 years from now?

Rather than getting left behind, executive teams are placing big bets on AI to ensure it remains relevant. But not everyone is happy. A tech standoff is building between tech execs who believe AI is crucial to long-term growth and investors who are increasingly skeptical without a short-term return on investment.

When Will Tech Layoffs Stop?

Maybe the more accurate question is: When will the tech job market recover? There are signs that the change to the tech landscape is not all negative.

Randstad RiseSmart’s Global Severance report suggests the global employment landscape is undergoing a significant transformation.

A staggering 96% of organizations have already implemented some form of downsizing in the past year, underscoring the widespread impact of economic challenges and shifting business strategies.

Even more telling is the expectation that 92% of these employers are bracing for further headcount reductions in 2024.

Alarmingly, the survey reveals a critical gap in organizational preparedness; most of these companies appear to lack strategies or resources to support their employees effectively through these impending job cuts.

This situation highlights the need for more comprehensive severance and transition plans and raises questions about the long-term implications for workforce morale and the broader socio-economic fabric.

The good news is while AI is enhancing efficiency in fields like software development and IT operations, it struggles with tasks requiring human intuition and manual dexterity. Interestingly, jobs least likely to be affected by AI are those rooted in human empathy and physical skills, such as healthcare, skilled trades, education, and creative professions.

Understandably, many are beginning to ask which careers are safe and which are at risk. But as AI matures, its role should be seen as more of a collaborator than a replacement. As Businesses increasingly leverage AI to enhance efficiency and human experiences, this technological embrace brings forth the critical challenge of maintaining ethical standards.

Another recent report (PDF) by Alix Partners interviewed nearly 350 tech executives in North America, Europe, the Middle East, and Africa (EMEA).

25% of U.S. tech leaders stated they expect to implement layoffs in the coming year – but, more positively, an additional 37% expressed uncertainty about the need for workforce reduction.

In EMEA, 28% of tech leaders are also anticipating layoffs. These figures show uncertainty ahead. But as AI investments continue to rise, we can expect further cuts to pay for it.

Despite these challenges, the US labor market shows adaptability. There is a growing need for workers skilled in generative AI, as indicated by a notable increase in job postings mentioning “GenAI.”

This trend suggests a shift towards a more AI-integrated job market in 2024, requiring professionals to adapt and acquire new skills to thrive in an evolving employment landscape.

Future-Proofing Your Career

Cliff Jurkiewicz, vice president of global strategy at Phenom, an HR technology company, believes the tech job market has a positive side — tremendous opportunity.

“The retail and communications industries are going through massive technology upgrades. AI is driving expansion in tech. Like disruptive technologies before it, AI is creating new roles and new skill requirements for existing role.”

AI Curators work closely with expansive language data sets to train AI algorithms and ensure that their outputs align with the organization’s goals. AI Ethicists serve as ethical compasses, grappling with questions of fairness and transparency.

“Think of Jeff Goldblum’s character in Jurassic Park always pushing beyond “can something be done” and asking “but should it be done?”

AI Policy Makers and Legal Advisers scrutinize technical and societal impacts, working in tandem but distinct from AI Ethicists. AI Trainers educate the workforce and the AI itself, acting symbiotic with AI Curators.

AI Auditors are responsible for ensuring the accountability of AI systems, while AI/Tech Interpreters adopt a more strategic lens, translating the overarching impact of AI technologies within an organization.

These roles signal AI’s maturation in the enterprise and underscore the multifaceted responsibilities that come with its adoption.

“Tech professionals have an advantage. Their skill sets are highly marketable to the tremendous opportunities for tech roles in other industries. They also have the background and ability to simplify upskilling for the new AI-based roles. And these new AI roles are just the beginning, with others not far off on the horizon.”

The Six-Fold Rise of Data Jobs in the Tech Industry

Linda Lee, Velocity Global’s chief people and culture officer, shared job trend data from the past five years. The data shows that new employment in data-related jobs increased sixfold from 2018 to 2022.

Lee believes this will likely continue to be a focus in 2024 as data reigns king in business.

“Because borders no longer restrict one’s options for work, we expect borderless hiring to continue its upward trajectory as companies look to boost revenue streams, broaden talent pools, and retain quality talent.”

As the tech industry solidifies its role as a global change agent and growth engine, understanding the job market trends for 2024 is becoming crucial for both seasoned professionals and newcomers eager to make their mark.

“The tech space catalyzes worldwide change, innovation, and growth. The job market has been challenging the past couple of years, but the industry’s potential drives those to stay in the space and new talent to enter. The industry will only grow in 2024, and according to the data, enhancing your data skills and highlighting your managerial experiences will help you break through and move up.”

The Bottom Line

2024 layoffs continue to shake the industry as companies balance AI investments with cost-cutting measures.

CEOs who have previously said, “This company is all about our people,” have arguably allowed their obsession with going all in on AI to dehumanize their workforce on a massive scale.

As the AI arms race gathers pace, all eyes will be on whether tech companies will continue to sacrifice their workforce in a relentless pursuit of future profits. Or will they find an ethical balance that values innovation and their staff?

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