The tech industry started 2024 with another wave of layoffs, building on last year’s massive layoffs.
So far, about 32,000 tech workers have lost their jobs in 2024, according to Layoffs.fyi, a startup that has been tracking industry layoffs since the pandemic.
Snap became the latest example, announcing on Monday that it would cut its workforce by about 10 percent, or about 540 people.
This year, “tech companies are still trying to correct overhiring during the pandemic surge, given that both the high interest rate environment and the tech recession have lasted longer than originally expected,” said Layoffs.fyi founder Roger. Lee writes in the article. Email.
Lee said there have been two main waves of layoffs in recent years. The impact of the rapid increase in the number of “early new coronavirus infections” from the first quarter to the second quarter of 2020 and the “rise in interest rates” that has continued since the second quarter of 2022.
“This year’s layoffs are typically smaller and more targeted than those of a year ago,” Lee said.
According to an analysis by CompTIA, which tracks employment trends in the technology industry, the number of “jobs requiring artificial intelligence or AI skills” increased by about 2,000 from December to January to 17,479.
As a result, the industry is cutting some jobs while actively hiring others. CompTIA said there were 33,727 active job openings in January, the largest month-over-month increase in 12 months.
“The bulk of the layoffs have certainly happened and companies will start to recover,” said Bart Bean, CEO of Insight Global, a staffing firm. “But it’s still very uncertain.”