🤕 7,600+ Tech employees face layoffs already this year. What does 2024 have in store?

🤕 7,600+ Tech employees face layoffs already this Year. What does 2024 have in store?

2024 has had a brutal start in regards to layoffs. According to Layoffs.fyi, more than 7,600+ employees from 52 tech companies have been laid and this past week was a doozy. We saw layoffs from Google, Apple, Amazon, Discord, SoFi, Instagram, and many others. Despite the pain that has been released into the tech ether, this January still pales in comparison to last January where 89,000+ employees from 250+ tech companies were laid off.

So the question is, will the pain continue?

In a new survey from ResumeBuilder, they surveyed 906 business leaders at organizations with over 10 employees. Below are the key takeaways.

Key findings:

• 38% of companies say they are likely to have layoffs in 2024

• 52% are likely to implement a hiring freeze in 2024

• Half say anticipation of a recession is a reason for potential layoffs

• 4 in 10 say layoffs are due to replacing workers with artificial intelligence (AI)

• 3 in 10 companies reducing or eliminating holiday bonuses this year

62% of companies say they will take a performance-based approach to layoffs, while 17% say they use ‘last in, first out.’

So why are companies cutting back in 2024?

It really boils down to 3 things: AI, Global Uncertainty, and Cost of Capital

1. AI

When ChatGPT first came on the scene in November 2022, some serious curiosity was piqued, and the AI blog post race was on. When GPT-4 hit the market that following March, the fear started to settle in for certain jobs, and the oracles came out with their predictions. The most notable predictions came from a study by Goldman Sachs in April that looked at tasks performed by humans and analyzed which would be at risk of automation by AI.

At the time, the quote above felt like fear-mongering and unbelievably off. However, we’ve seen how these large language models (LLM’s) have evolved just over the past year with products such as OpenAI’s ChatGPT (GPT-4, DALL-E 3, Whisper), Google’s Bard & Gemini, Anthropic’s Claude 2, Meta’s Llama 2, and many others. This technology has eaten away at white and blue collar tasks quicker than anyone could have believed.

2. Global Uncertainty

In a post by the Harvard Business Review called What to Expect from the Global Economy in 2024, they sum up this uncertainty that is driving company behavior going into the rest of this year:

The War in Ukraine, the Palestinian conflict in Gaza, and uncertainty around the US election are just a few specific examples of global issues that companies are considering.

3. Cost of Capital

With interest rates sky high, combined with inflation, companies are not eager to spend more $ than they have to. Even though the Fed has held interest rates steady for the time being, as well as signaled the possibly cutting the interest rate later this year, we will still some adverse effects as a result.

What can I do in this job environment?

One of the biggest keys in this difficult job landscape is to control what you can control. It sounds cliché, but it will serve you well and help you keep your sanity. The element that we cannot control is the employment door opening for us. And until it does, we can increase our odds and prepare to pitch the best version of ourselves through many avenues.

1. Upskill - it’s never been more clear the skills necessary to operate in the world of tomorrow. While AI is eating tasks performed by employees, it’s not eating the entire role. As a skilled human, empowered by AI, you become 10x more desirable to a company. Jump on the usual suspects such as edX, LinkedIn Learning, Coursera, Udemy, and many others.

2. Build that Network! - I’ll scream it from the top of a mountain until my voice get hoarse, but almost no applicants are getting hired that don’t have some sort of 'in’ with the hiring manager or company. If you just got laid off, find, or create your Alumni group. These are often on Slack, but can be as simple as a Whatsapp group. The goal is to support one another. Air your grievances, get job referrals, and ultimately shake the feeling that you’re alone.

3. Get your docs in order - This goes without saying, but have your resume in tip top shape (ATS optimized), have your portfolios pristine, and optimize your LinkedIn profile. You’d be surprised how much this step gets overlooked.

4. Put your skills to use! - Chances are that at your previous company, you got pretty good at what you did, and you built a network of clients. Many of those clients might enjoy working specifically with YOU and would like to maintain a relationship. Yes, I’m talking about consulting, or offering your skills as a freelancer, or get a group of your previous colleagues and build an agency around those skills.

To reiterate, it can drive a person insane to apply 500 times to land 2 first-round interviews for roles that don’t work out. Control what you can control and lean into what you’re good at. You’ll be surprised how much you can make for the skills your previous employer did not appreciate.

📉 Notable Layoffs this Week

• Google is restructuring its ad sales division and eliminating hundreds of positions focused on large companies, Business Insider reports. The announcement was made days after the search giant confirmed it had cut "a few hundred roles" on its Devices and Services division.

• Apple is shutting down its artificial intelligence operations team, and all 121 employees will be asked to relocate within the company or risk termination, Bloomberg says.

• Universal Music Group will lay off hundreds of jobs this year, primarily in its recorded music division, Bloomberg writes. The company had roughly 10,000 workers at the end of 2022.

• Citigroup is eliminating 20,000 jobs in order to cut costs by $2.5 billion, Bloomberg reports.

• NBC News is cutting between 50 to 100 workers, according to Deadline. The media outlet had about 3,500 total employees as of 2023.

• Disney's Pixar is poised to reduce its headcount by as much as 20% this year, TechCrunch writes, which may include staff hired for Disney+.

• Discord is cutting 17% of its employees, or about 170 people, in order to "sharpen" its focus, The Verge reports.

• Amazon is letting go of hundreds of Prime Video and MGM Studios workers, The Hollywood Reporter writes, as well as 5% of its Audible staff.

📊 Wage Growth Set to Keep Slowing, Though at an Uncertain Pace

Chart of the Week:

Key Points:

1. While wage growth 📈 is below its peak 🏔️ in late 2021 and early 2022, it remains elevated compared to pre-pandemic levels 🌍.

2. Wages grew 3.8% year-over-year in December 📅, according to the Indeed Wage Tracker, down from 9.3% at its peak almost two years earlier ⏳.

3. On its current trajectory, posted wage growth would descend 📉 to 3.5% by February, and its pre-pandemic average of 3.1% by May 🌷.

🛠️ Job Seeker Tools

sidebar

www.sidebar.com

Sidebar is the leadership program where small peer groups grow and evolve together. Nothing w

ill get you further in your career than learning from your peers.

Mercor

work.mercor.com

Their AI reviews your profile, conducts interviews, and automatically matches you with remote jobs at top Silicon Valley companies. You'll be able to set your own rate and work flexible hours.

Taro

www.jointaro.com

Get promoted faster, level up your pay, and grow your skills with our learning platform. Supercharge your learning with our masterclasses, discuss in-depth career topics with proven engineering leaders, and join networking events with other talented people in tech.

Join a Network of Job Seekers 🥳

The Offboard Community offers an alternative to LinkedIn, providing a unique space tailored for job seekers in tech. It’s not just a platform for networking; it’s a resource designed to help you regain your footing and advance in your tech career, supported by the knowledge and experiences of your peers.

Below are some of the community features:

1. Create an anonymous account or join as yourself

2. Discussion or ask for help re: layoffs, interviewing, resumes, money & finance, upskilling, and more!

3. Jobs: Find or refer jobs, and engage in our live job chat space

4. Watercooler Chat: Just looking for a general place to chat with other job seekers? Jump into the Watercooler.

5. Join Virtual Events (Coming Soon)

Curious if your company has a layoff planned?

Look into the crystal ball to see if your company has a layoff coming up by leveraging federally mandated WARN notices!

www.warntracker.com