Sukhmani Kooner, Pune
The tech industry has seen a rising trend in layoffs over the last 2 years. The driving factors are restructuring the workforce to enhance profitability, jobs being taken away due to AI seeping into the landscape, and market modifications post-COVID.
September has seen some respite in the layoffs compared to August wherein 44 companies laid off 27,065 workers. As 30 companies lay off 3,765 employees, September observes a sharp fall in the numbers.
Microsoft, Udemy, and Northvolt made major layoff announcements in the month of September. Since taking over Activision Blizzard in 2023 for $69 billion, Microsoft has sacked 2,550 employees from their gaming business and the recent layoff also comes in due to the acquisition. On September 12, 650 employees were sacked mostly from corporate and support functions. In a memo, X-box Chief, Phil Spencer, clarified that “ no games, devices, or experiences were impacted by the decision and no studios are being closed”.
Edtech giant based in the US is planning to lay off 20% of its employees. Due to the restructuring in the company which has an estimated cost of $16- $19 million. The restructuring comes into the picture because of the losses the company incurred in the first half of 2024. The company revealed in July that it had lost $50 million. Around 280 employees will lose their jobs because of this move.
Northvolt, a Swedish company based in Stockholm is in the business of producing lithium-ion batteries which are used in electric vehicles. The company which is one the most prominent firms in Europe and has tie-ups with Volkswagen and Volvo, announced layoffs on September 22. In an attempt to cut costs, they have decided to cut 1,600 jobs in Sweden. In their cost-cutting drive, they aim to cut 20% of their global workforce and 25% of their workforce in Sweden.
Cisco has announced a 7% reduction in its workforce in the second phase of layoffs. This will result in 5,600 employees losing their jobs. In the fast-paced and ever-changing landscape of the tech industry, cuts were made to stay competitive in the market.