Tech kicks off 2024 with a layoff bender as the industry braces for yet another ‘bumpy landing’

Layoffs, not love, are in the air again. Google slashed hundreds of jobs today, while Instagram cut several dozen of its own on Wednesday Also this week, Amazon-owned Twitch lost 35% of its staff, and Amazon’s Prime Video divisions announced several hundreds layoffs but “it’s far lower than 35%” a spokesperson wrote to Fortune, and AI startup Humane, which raised over $200 million and plans to ship its new wearable in the coming months, just cut 4% of its employees. Adding to the bloodshed, video game software provider Unity Software plans to cut 1,800 jobs, or 25% of its staff.

It’s an unfortunate turn, but predictable. Spotify, Coinbase, Amazon, Salesforce, and more cut thousands of jobs last January after pandemic hiring frenzies led to bloated workforces. The new year means more scrutiny on budgets, and annual belt-tightening is already kicking off in a big way. One expert told CNBC that we’re in for a “bumpy landing,” but expects markets to bounce back later this year.

Layoffs.fyi, a website that dutifully tracks job cutting, shows that 263,000 tech employees were cut in 2023 alone. Only 11 days into 2024, there have been 24 tech companies that have laid off a total of 3,331 employees. It’s not all doom, though. X, GitHub, and Vercel are hiring, and when OpenAI risked losing all its staff after the surprise and ultimately temporary ouster of its CEO, swaths of companies like Salesforce, Microsoft, Nvidia, and Meta attempted to scoop up the valuable talent.

Wedbush analyst Dan Ives told Fortune that more layoffs may be coming. But in general, he said many large tech companies will continue to hire. “The weaker hands will be exposed and many layoffs will happen for the secular decliners while the Big Tech players gain more market and mind share,” Ives said. 

Looking forward, Layoffs.fyi founder Roger Lee told the SF Standard that we likely won’t see the same sweeping cuts we saw last year, like when Facebook-parent Meta and Microsoft each laid off more than 10,000 employees. However, companies that didn’t make large enough cuts in 2023 might continue to winnow their staff into 2024.

As the latest layoff cycle runs its course, I’m hopeful that things will gracefully swing back to normal soon enough. Until then, let’s keep our résumés polished and our sense of humor intact. Maybe thank yourself that you didn’t invest in any NFTs.

Kylie Robison

Want to send thoughts or suggestions to Data Sheet? Drop a line here.

NEWSWORTHY

Reaching the lobbying limit. Chinese tech giant Huawei has shuttered its U.S. lobbying operations after spending tens of millions of dollars trying to win over lawmakers, only to end up blacklisted, Bloomberg reported. The Federal Communications Commission previously labeled the telecom firm a national security threat. 

Quiet cooperation. North American AI companies OpenAI, Anthropic, and Cohere have participated in secret meetings with Chinese AI experts to discuss the safe development of new technologies, the Financial Times reported. The talks represent a rare collaboration across the territories as tensions mount. 

Payday at Tesla. Tesla is bumping up pay for factory workers across the U.S., Bloomberg reported. The increase comes as the United Auto Workers labor union is trying to organize Tesla employees. The union, which Tesla chief Elon Musk has been vocally critical of, reached new labor deals for Ford, Stellantis, and General Motors last year that included higher wages. 

IN OUR FEED

"I didn't expect ChatGPT to get so good. It blows my mind."

—Microsoft cofounder and philanthropist Bill Gates said in a conversation with OpenAI chief Sam Altman for Gates’ podcast Unconfuse Me with Bill Gates. The two also spoke about what AI regulation could look like, with Altman pointing to the global body that regulates nuclear weapons as an example. 

IN CASE YOU MISSED IT

Meet the AI-powered robots that could change the multibillion-dollar window-cleaning industry forever, by Stephanie Cain

Perplexity AI’s challenge to Google hinges on something simple but tough—being the best, by Allie Garfinkle

Elon Musk risks more X advertising revenue by weighing in on diversity debate about Black people’s intelligence, by Christiaan Hetzner 

Pete Buttigieg says ‘electric vehicle revolution’ is here as White House scrambles to build nationwide charging network with $623 million grant program, by Matthew Daly and the Associated Press

Tech world’s hopes for 2024 dashed with early wave of layoffs at Amazon, Google and Unity, by Brody Ford and Bloomberg

BEFORE YOU GO

EV reversal. Rental car company Hertz is selling off one-third of its EV fleet to reinvest in gas-powered cars, the company said in a regulatory filing on Thursday and Bloomberg reported. Citing weak customer demand and high repair costs, Hertz began selling 20,000 electric vehicles last month. 

The move reverses CEO Stephen Scherr’s strategy to increase investment in EVs. The company previously announced plans to purchase 100,000 Tesla cars with hopes customers would pay more for the option.