Tech layoffs continue to be on the decline. In September, 35 companies in the tech industry sacked as many as 3,941 employees, and October saw 30 companies handing over the pink slip to 3,080 employees as per layoffs.fyi. Just when we thought September was the lowest in terms of layoffs, October springs a surprise with the trend continuing to be on the decline. In October, four tech firms slashed over 400 jobs each, while nearly four companies reduced their staff by 300 each. Regardless, October marks the lowest point in the number of companies and employees affected this year. The spate of layoffs in October is in line with the broader trend of stabilisation observed through the earlier months, especially after the peak layoffs in January, February and April. Layoffs in October were seen in companies from across sectors including crypto, consumer, finance and healthcare. While US-based cloud storage solution provider Dropbox let go of 527 employees, cryptocurrency exchange company Kraken reduced its workforce by 400. On October 30, it was reported that Dropbox was laying off 20 per cent of its workforce as part of what CEO Drew Houston termed as a 'transitional period. Houston said that the objective was to make cuts in areas where Dropbox was "over-invested" and design a 'flatter, more efficient' team structure. On the other hand, Kraken, one of the largest cryptocurrency exchanges, laid off 15 per cent of its workers as part of a corporate restructuring. The company also appointed a new co-chief executive. On October 11, it was reported that TikTok was laying off hundreds of employees from its global workforce, mainly from Malaysia. The company said that the layoffs were part of its shift towards a greater use of AI in content moderation. Earlier it was reported that the company had axed over 700 jobs, however, TikTok's parent company ByteDance later clarified that the number was around 500. Other notable layoffs were reported in companies like Miro, dYdX and ConsenSys, that laid off substantial staff from their workforce. These layoffs mainly affected the SF Bay Area and New York, which are major tech hubs. On the other hand, layoffs in crypto and finance industries indicate the ongoing challenges they are facing within the sectors. These could be likely due to the market volatility. On the other hand, companies like Lending Club and Karat Financial reportedly streamlined their operations owing to economic pressures. In healthcare, companies like Nomad Health, Carbon Health were affected. Through the year, it has been observed that the companies most impacted by the layoffs have been those from the traditional tech fields such as software, hardware, social media and a handful of companies from fintech and AI. This has been seen as an outcome of companies in the tech landscape adopting and integrating AI tools and automation, while certain roles and departments within these companies were at risk of redundancy, especially when companies were resorting to cost-saving measures. While we are observing a steady decline, if consistent, this could be a signal that the tech industry could be on its path towards job market stabilisation.
