The electric vehicle sector is hitting Tesla hard, layoffs are hitting Rivian, and Google is shedding much more employees
Last week’s U.S. tech industry layoffs included cuts in the software, gaming and even artificial intelligence sectors. However, in the weekly rating, the leading sector ranks solidly in the electric vehicle category.
The third week of April began ominously for EV employees Tesla reporting this may result in 14,000 job cuts – or 10% of the global workforce – although it is unclear how many of those employees work in the US. report In New York TimesCEO Elon Musk informed employees via email of the planned downsizing as the Austin, Texas-based company prepares for its “next phase of growth.” What exactly this phase involves has not been revealed, but in early April Musk announced that work was underway to debut Tesla Robotaxi in August.
Tesla competitor Rivian also announced layoffs this week. No total variety of employees at the Plymouth, Michigan-based company were affected, but the company said it was in response to declining electric vehicle sales and affected 1% of its workforce. It’s unclear how many U.S. employees shall be affected.
Other layoffs this week include more cuts at the Mountain View, California, online colony Googlewhich plans to further cut costs by shedding and reassigning an undisclosed variety of employees.
Game publisher Take-Two interactive software it also said it would scale back its variety of employees by 579, or 5% of its workforce, and also end production of “several products in development…” to scale back costs. And this week’s appearance of generative AI in the layoff tracker comes from San Francisco For me, which said it had furloughed 12 of its employees on Monday. Supported by risk giants Coatue Management AND Greylock’s partnersthe company recently raised a Partners of the Lightspeed enterprise-led a $43 million Series B in February last yr.
The latest layoffs in the technology industry
The following companies were added to the tracker this week:
Layoffs in the technology industry: American companies are cutting jobs in 2022, 2023 and 2024
By the numbers
Layoffs in the two weeks ended April 19, 2024: At least 14591 US tech employees have been laid off, based on Crunchbase News.
In 2024: At least 47036 According to data from Crunchbase News, employees of American technology companies have lost their jobs this yr.
In 2023: More than 191,000 employees of U.S. technology companies (or technology companies with large numbers of employees in the U.S.) have been laid off in mass layoffs.
In 2022: More than 93,000 in the USA, there have been job cuts in public and private technology companies
Companies with the largest job cuts in 2023
Methodology
This tracker includes layoffs made at U.S.-based companies or those with a strong U.S. presence and is updated at least weekly. We included each start-ups and publicly traded, high-tech companies. We also included companies based elsewhere that have a sizable team in the United States, equivalent to Klarnaeven if it is unclear how much of the U.S. workforce has been affected by layoffs.
Layoff and labor figures are best estimates based on reports. We get information about layoffs from media reports, our own reports, social media posts and layoffs.fyicrowdsourced database of tech layoffs.
We recently updated our layoff tracker to reflect the latest round of layoffs undertaken by each company. This allows us to trace layoff trends quickly and more accurately, so you might notice some changes in our latest numbers.
If employment can’t be confirmed based on our standards, we consider it “unclear”.
Frequently asked questions
What is a layoff?
Layoff may take the type of a everlasting termination of employment – often for cost-saving reasons – or a temporary termination because there is not enough work to employ the full workforce. Layoffs at tech companies typically fall into the everlasting category.
Mass layoffs occur when a company lays off a significant variety of employees in a short time frame, often as a results of economic conditions.
Why are tech companies shedding employees?
The variety of layoffs in the technology industry has increased in 2022 and 2023. Companies give various reasons for layoffs.
Some companies – particularly those in the e-commerce sector – have nearly doubled their staff to satisfy consumer demand during the Covid-19 stay-at-home orders and are now finding they are overstaffed in the current economic climate.
Large employers in the technology industry, e.g Sales force AND Google parent Alphabet noted that the recent layoffs follow several years of rapid hiring fueled by rapid growth, with some companies almost doubling their worker numbers between 2019 and 2022. Some large technology companies that have made layoffs also cited falling stock prices, slowing sales and fear of a recession as reasons for the reductions.
What were the biggest layoffs in the tech industry in 2023?
Amazon in 2023, layoffs were a major factor, with 16,000 positions cut.
Leave of absence at Alphabetparent company Googlea total of roughly 12 thousand MicrosoftAs in the case of layoffs of a total of roughly 10,000 employees Facebook parent Metalayoffs. Together with Sales forceThese technology companies saw the largest layoffs in the past two years, totaling tens of hundreds of positions.
Although these numbers are alarming, since the starting of April 2023 there have been total layoffs in these companies they represent only 8% of the number of recent employees they hired during the pandemic.
Many other venture-backed technology startups have also made layoffs, citing slowing enterprise capital financing and falling startup valuations as aspects influencing their layoff decisions.
Are there more layoffs coming from the technology industry?
What signals indicate that the company is planning layoffs?
Signs that will indicate that a company is more more likely to make layoffs include:
- Freeze recruitment, pay or promotion: Payroll is the most vital cost for most technology companies, and company leaders often look to scale back costs first. Companies can do this by suspending hiring for all but the most important positions and freezing promotions and raises for current employees.
- Warning signals in the company’s financial results: An organization that is struggling with declining revenues or profits, or is simply not growing at the expected rate, is more more likely to make layoffs and take other cost-cutting measures. Unfortunately, employees of many private startups do not have access to detailed financial information about their employers.
- Restructuring of teams or departments: Companies may mix or consolidate teams in an try to streamline operations and reduce costs. Layoffs resulting from these restructuring actions often result in job cuts. Companies might also increase their reliance on external teams or contractors.
- Increased internal communication: Frequent communication from management to employees about the company’s financial challenges, employment optimization, the need to scale back expenses or the need to extend productivity may indicate that layoffs are being considered. Venture-backed startups strive to administer their very own money runway — the period of time they’ll proceed operating at their current money burn rate without fresh capital — also can alert employees to scale back their money burn.
- Unexpected changes in company policy: An organization that suddenly orders employees who have been working remotely to return to a physical office could also be considering layoffs. Often, such policies are used as justification for firing employees who do not comply with recent mandates. Similarly, unexpected organizational evaluations or worker performance audits outside frequently scheduled business reviews may precede layoffs.
- Reduced workload or project cancellations: Other signs that a company is in financial difficulty that may lead to layoffs include a noticeable reduction in worker workload or the cancellation or postponement of huge projects.
- Other actions to scale back costs: Companies often withhold or cancel perks and advantages, including worker travel, catered meals, education or health care grants, before implementing larger cost-cutting measures equivalent to layoffs.
When will layoffs end?
How many layoffs have there been recently in the tech industry?
Our tech layoff tracker shows that roughly 200,000 tech employees were laid off in the U.S. in 2023. That’s greater than twice as much An estimated 93,000 tech employees shall be laid off in the U.S. in 2022.
Is selling the company a good technique to avoid layoffs?
What jobs shall be lost as a results of layoffs in the technology industry?
Technology layoffs have affected departments in many companies.
Many layoffs in large tech giants they were software engineers. Startups are more more likely to retain engineers in favor of layoffs in their talent and recruiting, marketing and other departments.
Google reduce roles across sales, recruiting, product and engineering teams. Amazon the layoffs included jobs AWS cloud unit on your social video platform Crampand in the promoting department. Meta CEO Mark Zuckerberg said the company’s recruitment department can be the first to experience job cuts.
Where can I read the latest news about layoffs of technical employees?
Follow all our tech layoff news Here and track which companies are shedding employees using the layoff tracker above.
Where can I see sick leave for the last 24 hours?
While not every day, Crunchbase’s tech layoff tracker is updated weekly, if no more often, with the latest layoffs at U.S. tech employers.
Which companies recruit for positions related to open technologies?
Many tech companies are still hiring for open positions despite industry layoffs. Find out more about The Active Hiring filter in Crunchbase and learn how to find companies with multiple open positions.
Crunchbase News also highlights recently funded startups that are actively hiring in our weekly Who’s Hiring feature. Here you can find all our news related to the labor market Here.