Photo by JJBers/ Flickr/ CC BY 4.0
The start of this year has ushered in a new and unpleasant job market trend. Throughout mid-2022 to 2023, major companies announced widespread layoffs, eliminating thousands of roles all at once. The workforce is now experiencing a shift from large-scale layoffs to a more gradual and ongoing process.
January’s downsizings are not expected to significantly impact the thriving labor market. While the layoffs are ongoing, they are not at the scale of the massive job cuts seen in 2023. Last year, over 1,100 firms laid off more than 260,000 workers in the tech sector alone, according to Layoffs.fyi.
The Trend Of Slow And Steady Layoffs
The United States job market is currently contending with a number of challenges, including continued economic uncertainty, the ascension of artificial intelligence and companies facing the music after their pandemic-fueled hiring sprees.
Rising interest rates and inflation created a “perfect storm,” leading to turbulence in the economy and companies taking a wait-and-see approach.
The tech industry, in particular, has seen a reversal of trends that were favorable for employment, such as increased hiring to meet consumer demand and the ability to raise capital and invest in growth due to slashed interest rates. The layoffs in this sector are part of a market correction, as companies adjust their staffing levels to align with their current revenue and growth projections.
Notable Companies Laying Off In 2024
Wayfair
Wayfair CEO Niraj Shah informed his workers on Friday that the online furniture retailer is eliminating 1,650 positions, despite things “going well” at the company. In an internal memo to employees, Shah wrote that “as leaders our job is to position the company both now and over the long term.” Last month, the chief executive told staff, “Working long hours, being responsive, blending work and life, is not anything to shy away from. There is not a lot of history of laziness being rewarded with success.” He also said employees should think of company money as their own, according to CNN.
Macy’s
The Wall Street Journal reported on Thursday that department store chain Macy’s is laying off about 3.5% of its workforce—2,350 employees—and closing five of its stores. A company spokesperson said the layoffs are part of “a new strategy to meet the needs of an ever-changing consumer and marketplace.”
Amazon
In another blow to Amazon employees, CNBC learned this week that the tech giant will be terminating 30 roles in its Buy with Prime Unit. This year, the company has had a steady stream of layoffs in other divisions, including Prime Video, MGM, Audible and Amazon Pay units. An Amazon representative said in a statement, “We regularly review the structure of our teams and make adjustments based on the needs of the business.”
Citigroup
Reuters reported Thursday that Citigroup managers in markets, risk and investment banking were made aware of their terminations. Some managers were informed that their employment would end Feb. 1. Last week, Citigroup announced 20,000 job cuts over the next two years.
Google recently laid off hundreds of employees across various functions, including its advertising, sales, engineering, hardware and Google Assistant teams. These job cuts were about “removing layers to simplify execution and drive velocity in some areas,” according to Alphabet CEO Sundar Pichai.
Pichai warned his employees in an internal memo on Wednesday about the possibility of more “role eliminations” at the company in the coming months. “We have ambitious goals and will be investing in our big priorities this year,” he wrote in a message to Google staff that was obtained by the Verge. “The reality is that to create the capacity for this investment, we have to make tough choices.” Pichai told employees that “some teams will continue to make specific resource allocation decisions throughout the year where needed, and some roles may be impacted.”
Twitch
In an effort to “rightsize” the Amazon-owned, live-streaming company, Twitch announced this month that it will reduce headcount by 500 people. In a blog post to Twitch customers and employees, CEO Dan Clancy wrote, “For some time now, the organization has been sized based upon where we optimistically expect our business to be in 3 or more years, not where we’re at today.”
Duolingo
Duolingo, a language-learning app, let go of 10% of its contract workers, as the company moves toward embracing AI. In a November shareholder letter, CEO Luis von Ahn wrote, “Generative AI is accelerating our work by helping us create new content dramatically faster.” The company reported that no full-time employees were impacted in the layoffs.
Discord
Discord, a voice, video and text chat app, laid off 170 workers this month. In an internal memo to employees, obtained by the Verge, CEO Jason Citron wrote, “We grew quickly and expanded our workforce even faster, increasing by 5x since 2020. As a result, we took on more projects and became less efficient in how we operated.”
BlackRock
Global money manager BlackRock announced it will slash 3% of its total workforce—roughly 600 jobs. In a note to staff, CEO Larry Fink and president Rob Kapito wrote, “We see our industry changing faster than at any time since the founding of BlackRock.” The executives added, “And, perhaps most profound, new technologies are poised to transform our industry—and every other industry.”
Rent The Runway
Rent the Runway, an online rental service for designer clothing and accessories, revealed that it would be reducing 10% of its corporate positions in a regulatory filing this month. The layoffs are part of a restructuring plan expected to save the company $11 million to $13 million. In accordance with the new business strategy, Rent the Runway CEO Jennifer Hyman will be absorbing the roles left behind by president and COO Anushka Salinas, who will be exiting the company Jan. 31.
Source: Forbes
