As we transition into the new year, it's crucial to monitor the tech industry, particularly in light of recent fluctuations in layoffs. Let's delve into the latest developments and examine what lies ahead for U.S. tech workers in 2024.
Recent Layoffs
Last week, the tech sector experienced a slowdown in layoffs, with fewer than 30 companies appearing on our Layoffs Tracker. Wayfair, the Boston-based e-commerce giant, led the charge, implementing staff cuts across all departments. Initially, Wayfair ramped up to meet the demand surge during the work-from-home era of 2020, but it now finds itself overstaffed amid a recent decline in sales.
Amazon and Google also faced layoffs affecting their Buy with Prime and ad sales units, respectively. Google's subsidiary, YouTube, reported the elimination of 100 positions, signaling a reorganization to better support users and creators. The total number of affected U.S. workers at these tech behemoths remains unclear.
Notably, the sole U.S. tech startup announcing a complete shutdown this week is Artifact, the Los Angeles-based social media platform. Despite disabling comments and posts, Artifact plans to maintain its core news reading capability until the end of February.
Companies Added to the Layoffs Tracker:
- Amazon
- Artifact
- First Mode
- Hologram
- SonderMind
- Veeam
- Vendr
- Wayfair
- YouTube
By the Numbers
During the week ending January 19, 2024, at least 2,215 U.S. tech sector employees were laid off, according to Crunchbase News. In 2024, the tally reaches 6,505 job losses in U.S.-based tech companies.
Comparatively, 2023 saw over 191,000 workers from U.S.-based tech companies facing mass layoffs, while 2022 witnessed more than 93,000 job cuts in public and private tech companies.
Major Workforce Reductions in 2023:
- Amazon: 16,080 roles
- Alphabet: 12,000 roles
- Microsoft: 11,158 roles
- Meta: 10,000 roles
Methodology
Our Layoffs Tracker includes data from U.S.-based companies or those with a significant U.S. presence. It is regularly updated, encompassing both startups and publicly traded tech-heavy firms. Additionally, companies based elsewhere with a substantial U.S. workforce, such as Klarna, are included, even if the exact impact on the U.S. workforce is unclear.
The figures presented are best estimates based on various sources, including media reports, our investigations, social media posts, and the crowdsourced database.
FAQ's
Q1: Why did Wayfair, a Boston-based e-commerce retailer, report the highest count of layoffs?
A: Wayfair initially hired extensively to meet the heightened demand during the 2020 stay-at-home mandate. However, with recent declines in sales, the company found itself overstaffed, leading to staff cuts across all departments.
Q2: Which major tech companies faced layoffs this week, and what specific divisions were affected?
A: Amazon and Google experienced layoffs, impacting their Buy with Prime division and ad sales unit, respectively. Google's subsidiary, YouTube, also reported cutting 100 positions and undergoing reorganization to better support users and creators.
Q3: Is Artifact the only U.S. tech startup shutting down this week?
A: Yes, Artifact, a Los Angeles-based social media platform, is the only U.S. tech startup reporting a total shutdown this week. Although users can no longer add comments and posts, Artifact plans to maintain its core news reading capability until the end of February.
Q4: How many U.S. tech sector employees were laid off during the week ending January 19, 2024?
A: At least 2,215 U.S. tech sector employees were laid off during the week ending January 19, 2024, according to Crunchbase News.
Q5: What is the total number of job losses in U.S.-based tech companies in 2024 so far?
A: In 2024, at least 6,505 workers at U.S.-based tech companies have lost their jobs, based on Crunchbase News data.