Tech Layoffs in 2024: Microsoft and Google Dismiss Hundreds of Employees Within the First Week of June
The tech industry continues to grapple with a wave of layoffs as June unfolds, maintaining a trend seen since 2023. Despite significant job reductions in the second quarter of this year, with 21,473 in April and 9,742 in May, the start of June has brought further challenges, with over 1,400 job losses recorded within the first week. Major players like Microsoft and Google have kicked off the month with fresh rounds of layoffs, citing ongoing restructuring and strategic shifts within the tech sector.
On Monday, Microsoft announced a new round of layoffs affecting approximately 1,000 employees. These cuts primarily impact departments involved in HoloLens 2 and the ambitious Azure Moonshots project, including the Mixed Reality wing and the Azure for Operators and Mission Engineering departments. This move is part of a broader restructuring initiative within Microsoft’s Mixed Reality division, following significant layoffs over a year ago. CEO Satya Nadella had then highlighted a shift in the company’s hardware portfolio, which now extends to advanced technology and cloud services divisions.
Following suit, Google has also initiated layoffs, targeting several teams within its Cloud unit. The cuts impact hundreds of employees across various departments, reflecting a strategic pivot towards artificial intelligence. Despite the Cloud unit being one of Google’s fastest-growing sectors, the company deems it necessary to trim its workforce, possibly reallocating resources to AI-focused projects.
These layoffs at Microsoft and Google contribute to a broader trend affecting the tech industry. In the first six days of June alone, seven tech companies have announced job cuts, collectively impacting 1,410 employees. Whether this trend will persist throughout the month remains uncertain.
May 2024 saw a decrease in layoffs compared to previous months, with 39 companies cutting a total of 9,742 jobs, down from April’s 21,473 layoffs across 50 companies. Google terminated around 200 engineering positions in Sunnyvale, California, as part of a broader downsizing effort. Other major cuts came from Indeed, Toshiba, TikTok, Walmart, Microsoft’s gaming division, and Tesla, reflecting ongoing restructuring efforts across the tech industry to adapt to market conditions and regulatory environments.
