Tech layoffs 2024: Over 8K job cuts worldwide, around 600 Indian professionals impacted in July

The second biggest layoff was announced by Intuit Inc, a financial management software firm based in California. On July 10, Intuit Inc. announced that it is slashing as many as 1,800 jobs––about 10 per cent––of its staff. On the other hand, software companies like Open Text and Redbox cut 1,200 and 100 jobs respectively. 

Tremors across the Indian tech sector

July has been dominated by layoffs in the tech sector across India. The month began with the news of microblogging site Koo, an Indian rival to X shutting down after talks over an acquisition by Dailyhunt fell through. Reportedly, the company employed close to 200 staff as of September 2021. Indian edtech giant Unacademy announced that it was laying off around 250 of its staff. As part of a restructuring exercise, Unacademy let off 100 people in marketing, business, and product, and around 150 people in sales. 

Meanwhile, WayCool, an agritech firm based in Chennai laid off over 200 employees in the third round of job cuts in 12 months. Reportedly, the layoff at WayCool took place at a time when the company was streamlining its operations to prevent losses after it struggled to close funding. On the other hand, the Bengaluru-based audio series platform PocketFM has laid off close to 200 writers from its staff. While the exact number remains unclear, the company reportedly laid off writers for its US-based audio series. 

When it comes to India, the biggest layoffs in recent times were announced by noted fintech brand Paytm in June when it laid off staff after the Reserve Bank of India barred Paytm Payments Bank Limited (PPBL). The company dropped nearly 3,500 employees from its sales division following the ban, reducing its staff strength to 36,521.

What are the potential reasons for IT layoffs?

Once known as the ideal venue for jobs that offer sustainable growth and security, the tech sector has been marred by a wave of layoffs in the last two years. When it comes to the main drivers of job losses, economic uncertainty, over hiring during the pandemic, and shifting business priorities seems to be the dominant factors worldwide.

In the last two years, prevailing global economic conditions, such as inflation and apprehension over recession have pushed tech companies to assess spending and the size of their workforce. Similarly, following the outbreak of the Covid-19 pandemic, there was an increase in demand for digital services leading to expansion in many tech firms. However, as normalcy resumed gradually, the increase in the workforce proved to be unsustainable for many companies which eventually led to layoffs. 

Another major reason cited for the wave of layoffs is the shifting priorities of companies. With many organisations leaning towards Artificial Intelligence and Cloud Computing, many jobs were impacted especially those in the less critical departments. Companies have also resorted to cost-cutting measures in an effort to pursue profitability. The advancement in automation and AI technologies too have led to job displacement in certain roles. 

Way forward

For those who have been laid off, the only way forward is to upskill and re-skill. Layoffs, no matter what role, can be debilitating. It is important to understand that this is a phase and one should prioritise their mental and physical health. One should carefully review their severance package benefits, start networking, and update their resume and online profiles. Most importantly, be patient and persistent.