May 2024 saw a wave of job cuts across the technology industry. Many companies, from tech giants Google to Toshiba, made cuts affecting thousands of people around the world. In May, 39 companies laid off 9,742 employees..for your informationis a website that tracks layoffs around the world. In April of this year, 50 companies laid off 21,473 employees. In May, more than 75,000 employees were laid off. percent The total number of laid-off employees decreased.
On May 16, it was reported that Japan’s Toshiba will accelerate restructuring under new management, cutting more than 4,000 jobs in Japan. Toshiba affected the largest number of employees, but it was followed by job site Indeed, which laid off nearly 1,000 employees, and Vacasa, an international vacation rental management company based in Portland, USA, which also laid off as many as 800 employees.
So far this year, 304 technology companies have laid off 89,193 employees across the industry.
What areas have been most impactful?
Judging by recent trends, the transportation industry appears to be the most affected by layoffs in May 2024. Several companies in this sector announced large-scale layoffs. Lucid Motors, Rivian, and Fisker were among the top companies that cut jobs.
Lucid Motors lays off 400 employees and closes 6 percent Rivian cut roughly half of its workforce, 120 employees on May 10 and 150 employees on May 3, in two waves that month. Fisker also cut jobs on May 29 and April 29, contributing to industry job losses, but the exact number of layoffs in May was not disclosed. Approximately 1,200 or more employees received layoff notices in May.
Possible reasons
With regards to the May layoffs, there appear to be multiple factors that prompted companies to take this extreme measure. One of the main reasons is economic uncertainty and ever-changing market conditions. It is noteworthy that over the past 18 months, several companies have struggled to maintain profitability due to rising operational costs, changing consumer demand trends, etc. Additionally, recent advances in automation and technology have led to Have Many companies are restructuring to improve efficiency and Labor cost.
Notably, electric vehicle makers Lucid Motors and Rivian have reportedly been affected by the economic turmoil and have decided to lay off employees. supply Supply chain: Most of these companies seem to be under constant pressure to innovate and cut costs, along with meeting environmental regulations. These factors may have prompted them to make decisive decisions, including reducing workforces.
Other Areas and Future Directions
The transport sector was not the only one to see job cuts in May. The education, health and finance sectors also saw large-scale job cuts. The Guild of Education laid off 300 employees, of which about 25 were percent San Diego-based QHealth announced double its staff cuts, laying off 180 employees on May 22 and 230 on May 3. Meanwhile, in the finance sector, Berlin-based WeFox laid off 60 employees and Boston-based Mainvest laid off 100 employees. percent Staff reductions.
As for the tech industry, the biggest player, Google, has experienced multiple layoffs. The company fired 57 employees on May 10 and 200 employees on May 1. This is in addition to the 57 employees it laid off on April 30.
The layoffs highlight the ongoing challenges facing various industries, but it’s important to note that the number of reported layoffs is declining, possibly as companies finally begin to make efforts to efficiently manage priorities without impacting existing jobs. economical Many factors are at play: uncertainty, advances in technologies such as AI, and competitive pressures on businesses. But as the market continues to evolve, businesses must adapt and find sustainable solutions.
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First uploaded: 06 January 2024 12:31 IST
