Sezzle FinTech Tracker December 2023 Banner

Tech Sector Cut 32,000 Jobs So Far in 2024

Approximately 32,000 tech workers have lost their jobs so far in 2024.

These layoffs come after a wave of job cuts made during 2023 in response to over-hiring during the pandemic, Bloomberg reported Monday (Feb. 5), citing data from Layoffs.fyi.

However, the layoffs made in 2024 are smaller and more targeted compared to the previous year, Roger Lee, founder of Layoffs.fyi, said in the report. 

In addition to companies taking corrective measures to address the surge in hiring during the pandemic, the race for artificial intelligence (AI) talent has been a contributing factor to job cuts in other areas, according to the report.

Job postings requiring AI skills increased by about 2,000 from December to January, reaching a total of 17,479, the report said, citing data from the trade association CompTIA. This highlights the increasing demand for AI talent in the tech industry that is prompting companies to realign their resources and streamline operations.

Despite the ongoing layoffs, the tech industry remains resilient and optimistic about rebounding. In January, there was a significant increase in active job postings, indicating a rebound in hiring, per the report. 

Still, the market remains uncertain, and Bert Bean, CEO of staffing company Insight Global, expects this uncertainty to persist for the next two quarters until the Federal Reserve takes action to cut interest rates, according to the report.

This news comes four days after Challenger, Gray and Christmas said the number of layoffs in the technology sector in January was the highest in that sector since May.

The total of 15,806 job cuts made by tech companies that month was second only to the 23,238 layoffs made by financial companies during January, according to the global outplacement and business and executive coaching firm.

One of the most recent announcements of layoffs came from the parent company of SnapchatSnap said in a Monday filing with the Securities and Exchange Commission (SEC) that it plans to lay off 10% of its full-time workforce.

“In order to best position our business to execute on our highest priorities, and to ensure we have the capacity to invest incrementally to support our growth over time, we have made the difficult decision to restructure our team,” the filing said.