The year 2024 is already shaping up to be a challenging one for layoffs. Uncertainty has been swept across industries as a small number of companies have begun laying off employees in the past few weeks.
Many layoffs in the tech and retail industries follow a period of increased hiring in response to the COVID-19 pandemic, when consumers spent more time and money online. These days, it seems like every business is laying off workers in an effort to boost profits by cutting expenses.
Some recent layoffs in the tech and retail industries include:
Job cuts at REI
The outdoor gear retailer REI is laying off 357 employees, the majority of whom work in the corporate offices and warehouses. Outdoor specialty retail has been declining for four quarters in a row, and the trend is only getting worse, CEO Eric Artz wrote in an internal letter. Despite REI’s best efforts, he warned that the trend caught up with them in the fourth quarter of last year, and that 2024 would be a challenging year for the company.
Job losses at Levi
The denim behemoth Levi Strauss & Co. has announced a two-year restructuring plan to reduce expenses and streamline operations, which includes a 10% to 15% reduction in the worldwide corporate workforce in the first half of the year. The layoffs occurred on the same day that Levi’s announced a $170 million plan to extend the naming rights for Levi’s Stadium, where the San Francisco 49ers play, for another decade.
Layoffs at Microsoft
An internal memo states that Microsoft is reducing its gaming division workforce by around 1,900 workers. Less than three months have passed since Microsoft closed the $69 billion deal to acquire video game developer Activision Blizzard. The layoffs, which amount to roughly 8 percent of the 22,000-person gaming workforce, have now begun.
Layoffs at TikTok
The advertising and sales division of TikTok has announced that it will be laying off dozens of employees. Officials from the social media site have confirmed the layoffs, which number sixty. The Beijing-based company ByteDance, which owns the TikTok app, did not offer an explanation for the layoffs.
Staff reductions at Riot Games
Riot Games, creators of the hit MMORPG “League of Legends,” are laying off 11% of their employees. The Chinese tech behemoth Tencent announced the layoff of 530 employees.
Layoffs at eBay
In response to a slowing economy, online retailer eBay Inc. will lay off around 1,000 workers, or around 9 percent of its full-time workforce. The company cites rising expenses as the reason for the layoffs.
Job cuts at Wayfair
Approximately 1,650 positions, or 13% of its worldwide workforce, will be eliminated by online furniture retailer Wayfair. The company’s CEO and co-founder, Niraj Shah, announced plans to “rebuild with modified leveling” this year, which would involve reducing seniority in certain roles and team sizes across the board.
Macy’s dismissals
Layoffs at Macy’s will affect about 2,350 workers, or about 3.5% of the company’s total workforce. Additionally, five stores in the following cities: Tallahassee, Florida; Arlington, Virginia; San Leandro, California; Lihue, Hawaii; and Simi Valley, California, will be shutting down by the legendary department store.
Job cuts at Google
Google announced the layoff of hundreds of workers from its engineering, voice assistance, and hardware departments. The layoffs are a direct result of the cost-cutting promises made by Google and Alphabet executives. A year ago, Google announced that it would be laying off 12,000 workers, or about 6% of its total staff.
Job cuts at Amazon
In an effort to reduce expenses, Amazon’s owned Twitch is laying off more than 500 employees. In an email to employees, CEO Dan Clancy stated that the platform “is still meaningfully larger than it needs to be given the size of our business,” despite cost cuts and increasing efficiency.
Audible, which is owned by Amazon, is reducing its workforce by approximately 5%. Although Audible is doing well, CEO Bob Carrigan warned that the industry is facing a “increasingly challenging landscape” in a memo he sent to staff. Furthermore, Amazon is cutting hundreds of jobs from its Prime Video and MGM Studios divisions in an effort to rein in underperforming departments.
