In 2023, significant layoffs impacted various sectors, including technology and media.
Notable companies like Google, Meta, and finance leader Goldman Sachs made considerable reductions in their workforce. As we step into 2024, the trend of job cuts seems to persist, indicating a challenging period ahead for employment across major US industries.
Anticipated Hiring Freezes and Layoffs in 2024
According to a survey by ResumeBuilder, about 38% of business leaders expect layoffs within their organizations, while around half predict hiring freezes.
The survey included responses from approximately 900 leaders at companies with over 10 employees. The apprehension of a recession is a significant concern for these leaders, influencing their cautious outlook for the year.
Google’s Continued Workforce Reductions in 2024
Google has proceeded with its job reduction strategy into 2024, affecting its central engineering division and hardware teams.
The Alphabet Workers Union publicly voiced its dissatisfaction with Google’s recent layoffs in a post on X, the platform previously known as Twitter. Labeling the job cuts as “needless,” the union highlighted the discord between the company’s profitable earnings and its decision to reduce its workforce.
Discord Adjusts Workforce After Rapid Expansion
The Verge reports that Discord’s CEO, Jason Citron, communicated in a memo that the company is reducing its workforce due to operational inefficiencies following rapid expansion.
Having grown fivefold since 2020, Discord found it necessary to decrease its employee count to streamline operations and focus on efficiency, leading to a 4% reduction in August.
Snap Inc. Trims Workforce to Enhance In-Person Collaboration
Snap Inc., the parent company of Snapchat, is reducing its workforce by 10%, equivalent to around 530 employees. This decision is part of a broader strategy to streamline the organization and foster in-person collaboration.
The company emphasizes its commitment to supporting the employees affected by this change. In a recent statement, Snap Inc. announced that the restructuring would incur charges estimated between $55 million to $75 million, predominantly for severance and related costs.
Amazon Prime Video and MGM Studios to Reduce Staff
Mike Hopkins, SVP at Prime Video and Amazon MGM Studios, informed employees about the decision to cut roles in order to “prioritize our investments for the long-term success of our business.”
“Throughout the past year, we’ve looked at nearly every aspect of our business with an eye towards improving our ability to deliver even more breakthrough movies, TV shows, and live sports in a personalized, easy to use entertainment experience for our global customers,” Hopkins said in a memo to staff. “As a result, we’ve identified opportunities to reduce or discontinue investments in certain areas while increasing our investment and focus on content and product initiatives that deliver the most impact. As a result of these decisions, we will be eliminating several hundred roles across the Prime Video and Amazon MGM Studios organization.”
Twitch Announces Significant Job Cuts
Twitch’s CEO, Dan Clancy, announced a reduction of over 500 jobs.
Despite efforts to curtail expenses, the company’s operational size was deemed larger than necessary, prompting a substantial reduction in the workforce to achieve a more sustainable business size.
Sony Interactive Entertainment Announces 900 Job Cuts
Sony is making significant workforce reductions, laying off 900 employees across its PlayStation Studios game development teams. Notable studios like Insomniac Games and Naughty Dog, known for their successful titles like the Spider-Man series and ‘The Last of Us,” respectively, are among those affected by the layoffs.
Additionally, Sony plans to close its entire PlayStation London studio as part of these cuts. Hermen Hulst, the head of PlayStation Studios, explained that evolving player expectations and the company’s push towards online experiences and expanding to PC and mobile gaming necessitate a change in strategy and resource allocation. Hulst also mentioned that this reorganization would lead to the cancellation of some game projects, although specific titles were not disclosed.
eBay to Reduce Its Workforce by 1,000 Employees
eBay’s CEO, Jamie Iannone, announced a workforce reduction affecting about 9% of its employees.
The layoffs are part of an effort to align the company’s expenses with its business growth, aiming to establish a more sustainable operational model for the future.
Microsoft Announces Layoffs in Gaming Divisions
Microsoft Gaming and Activision Blizzard are undergoing layoffs, affecting 1,900 employees, as disclosed in a memo by Microsoft Gaming CEO Phil Spencer.
This adjustment follows Microsoft’s $69 billion acquisition of Activision Blizzard. Microsoft is facing significant organizational changes, including a key departure. Mike Ybarra, the gaming company’s president, announced his exit in a heartfelt message, posting on X, “It’s an incredibly hard day and my energy and support will be focused on all those amazing individuals impacted — this is in no way a reflection on your amazing work.”
Salesforce to Reduce Its Workforce by 700
Salesforce plans to cut 700 jobs, as reported by The Wall Street Journal, which represents 1% of its global workforce.
Despite the layoffs, Salesforce continues to recruit for 1,000 open positions, indicating a strategic reshuffling rather than a broad-scale reduction.
Paramount Global Cuts 800 Jobs Following Super Bowl Success
Just after achieving record viewership with Super Bowl LVIII, Paramount Global is reducing its workforce by approximately 800 positions, or 3% of its total employees. CEO Bob Bakish communicated this decision through a memo to the staff, which was later obtained by Deadline.
This move is particularly notable as it follows closely on the heels of the company’s celebrated success across multiple broadcasting platforms, including CBS, Paramount+, Nickelodeon, and Univision, Business Insider notes.
