Tech industry sees substantial layoffs affecting nearly 100K employees globally in 2024

(MENAFN) In the year 2024, the tech industry has witnessed a substantial wave of layoffs affecting nearly 100,000 employees globally, as reported by layoffs.com. This trend underscores a strategic shift among major tech companies towards cost reduction and operational efficiency.

Among the prominent companies implementing layoffs, Tesla stands out with a reduction of 14,000 jobs, constituting 10 percent of its workforce. CEO Elon Musk emphasized the necessity of scrutinizing all facets of the company to streamline operations and boost productivity, as highlighted by the New York Times.

Google, part of the Alphabet conglomerate, has also made significant workforce cuts, eliminating over 1,300 positions. Courtenay Mencin, a spokesperson for Google, explained that these measures are aimed at enhancing efficiency and overall performance, according to insights from The Verge.

Similarly, Microsoft, headquartered in Washington, has initiated layoffs affecting 2,900 employees. The decision was part of a strategic plan to establish a sustainable cost structure, driven by the need to support the company's expanding business operations, as reported by The Verge citing Phil Spencer, CEO of Microsoft Gaming.

Dell, another major American tech firm, announced 6,000 job cuts as part of a broader cost-cutting initiative that includes constraints on external hiring.

Meanwhile, Toshiba, the Japanese electronics giant, undertook a restructuring effort post-acquisition by a consortium, resulting in 4,000 job losses.

These layoffs reflect the ongoing challenges within the technology sector as companies navigate between sustaining growth momentum and implementing effective cost management strategies. The decisions made by these industry leaders underscore their efforts to optimize operations amidst evolving market conditions and competitive pressures.

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