Tech layoffs 2024: May sees massive decline in job cuts; dropping to 9k from April’s 21k

The tech industry experienced a significant reduction in job cuts in May 2024, with layoffs dropping to 9,742 from April’s 21,473. This marks a substantial decline of over 75% in the total number of employees laid off, according to data from layoffs.fyi, a website tracking global layoffs.

Despite the decline, May still witnessed a fresh wave of layoffs impacting numerous companies and thousands of employees worldwide. A total of 39 companies conducted layoffs, with the transportation sector being the most affected. Companies such as Lucid Motors, Rivian, and Fisker led the layoffs within this sector. 

Lucid Motors alone laid off 400 employees, accounting for 6% of its workforce, while Rivian executed two rounds of layoffs, affecting 120 employees on May 10 and another 150 on May 3. Fisker also contributed to the job losses, though the exact number of layoffs in May was not specified. Overall, the transportation sector saw over 1,200 employees losing their jobs in May.

Among the major layoffs, Japan’s Toshiba announced a significant job cut of over 4,000 domestic employees as part of its accelerated restructuring plan under new ownership. Job site Indeed laid off nearly 1,000 staff, and Portland-based Vacasa, a vacation rental management company, cut 800 jobs. The tech giant Google also implemented multiple rounds of layoffs, affecting 257 employees over the course of the month.

Other sectors were not immune to the layoffs. The education, healthcare, and finance sectors also saw significant job cuts. Education company Guild laid off 300 employees, about 25% of its workforce. In healthcare, Cue Health in San Diego announced two rounds of layoffs, impacting 410 employees. In the finance sector, Berlin-based Wefox laid off 60 employees, and Mainvest in Boston experienced a complete workforce reduction.

Several factors have prompted these layoffs, including economic uncertainty, fluctuating market conditions, rising operational costs, and shifting consumer demand trends. Companies have also been driven by the need to innovate, reduce costs, and comply with environmental regulations, leading to workforce reductions.

While the ongoing challenges highlight the economic uncertainty and competitive pressures, the significant drop in the number of layoffs suggests that companies might be finding more efficient ways to manage their operations without resorting to mass layoffs. As the market continues to evolve, it is crucial for companies to adapt and find sustainable solutions to navigate these challenges.