Last year was a rough one for the tech industry, which lost 260,000-plus jobs.
Halfway into 2024, the sector has already cut 99,672 positions, Seeking Alpha reported Monday (June 24), citing data from the industry tracker Layoffs.fyi. The tech field eliminated 165,269 positions in 2022, the report said.
The report also compiles some of the more notable tech companies to have announced layoffs this year, including TikTok owner ByteDance, which has cut nearly 2,000 jobs this year, announcing plans last month to reduce its user operations, content and marketing teams by 1,000. The company also laid off 250 to 300 employees in Ireland in April.
Microsoft is reportedly planning to cut up to 1,500 workers from its Azure cloud operations, while Apple has recently laid off 614 employees following its decision to shelve its connected car and smartwatch projects.
Meta, meanwhile, is reportedly cutting 250 to 300 vice president positions, following a much wider spate of layoffs last year and in 2022, with 21,000 jobs cut.
Other companies that have cut jobs this year include PayPal, Snap and eBay, PYMNTS reported in February.
The cuts are happening as tech companies examine their staffing levels and conclude that “we’ve got a bunch of dead wood. And if we had a leaner organization we can do more,” Jefferies analyst Brent Thill told the Financial Times at the time.
“The layoffs are going to continue and it may get worse. It’s become contagious,” Thill added.
Meanwhile, a recent report by Citi finds that 54% of jobs in the banking sector have a higher potential for automation, while another 12% could be augmented by artificial intelligence (AI).
“AI-powered clients could increase price competition in the finance sector. The balance of power may shift,” the banking giant said in the intro to the report. “AI may be adopted faster by digitally native, cloud-based firms, such as FinTechs and BigTechs, with agile incumbent banks following fast. Many incumbents, weighed down by tech and culture debt, could lag in AI adoption, losing market share.”
The report also argues that a move to a “bot-powered world” raises issues surrounding things like compliance, security, regulation and ethics.
“Since AI models are known to hallucinate and create information that does not exist, organizations run the risk of AI chatbots going fully autonomous and negatively affecting the business financially or its reputation,” Citi said.