In 2024, the U.S. tech industry has witnessed a wave of significant layoffs, with Tesla Inc.
According to CNBC, citing internal data, the electric vehicle (EV) automaker reduced its workforce by at least 14% this year. This reduction slashed Tesla's global headcount to just over 121,000.
In April, Tesla CEO Elon Musk announced a company-wide cut exceeding 10% of its staff. By mid-June, internal records showed the workforce reduction reached at least 14%. Musk cited inefficiencies within the company as a driving factor behind these cuts.
Musk has also mentioned plans to reinstitute stock options for exceptional performance.
While Tesla's layoffs have made headlines, several other tech giants have also undertaken significant workforce reductions so far this year.
Here's a look at the biggest layoffs so far in 2024:
Tesla: 14,500 jobs
Tesla's workforce reduction follows a long period of growth and aims to streamline operations. The company's first-quarter revenue dropped by 9%, reflecting increased competition and a maturing product lineup.
Dell Technologies Inc
Dell, headquartered in Austin, Texas, announced layoffs affecting 5% of its workforce, citing a need to align its resources with market demands.
Cisco Systems Inc
Cisco's layoffs impacted 5% of its staff, primarily in the SF Bay Area, as the company navigates a challenging business environment.
Xerox Holdings Corp
Xerox, based in Norwalk, Connecticut, cut 15% of its workforce at the start of the year to restructure its operations.
Microsoft Corp
Microsoft announced layoffs on two separate occasions, reflecting ongoing adjustments to its workforce in response to market conditions.
PayPal Holdings Inc
PayPal's layoffs, affecting 9% of its employees, were part of a broader strategy to streamline its business and improve efficiency.
Unity Software Inc
Unity, a game development company based in the SF Bay Area, reduced its workforce by 25% as it adapts to changing industry dynamics.
Wayfair Inc
Wayfair's layoffs, affecting 13% of its staff, were driven by a need to align its resources with its strategic priorities.
Expedia Group Inc
Expedia's workforce reduction, impacting 8% of its employees, was part of a restructuring effort to enhance operational efficiency.
Alphabet Inc
Google announced a workforce reduction affecting 1,000 employees, reflecting ongoing adjustments in response to market conditions.
The tech industry continues to face significant challenges in 2024, with companies like Tesla, Dell and Cisco leading the layoff trend.
As these organizations navigate a rapidly changing market, their workforce adjustments reflect broader shifts within the industry. Investors and employees alike are closely monitoring these developments as they unfold.
