Despite reporting record-breaking revenues, successful companies like Microsoft and Meta are also participating in staff cuts. Microsoft, for instance, cut 1,900 roles in its gaming division in January 2024. Meanwhile, Meta's stock rose by 12% after it announced additional cuts in January, following a 22% staff reduction in the previous year. The company's CEO, Mark Zuckerberg, has dubbed 2024 as the "year of efficiency," indicating more layoffs to come.
Key takeaways:
- Since the start of 2024, over 34,000 tech workers have been laid off, with companies like Google and Amazon making consistent small cuts in various sectors.
- Companies are investing in AI and showing cost discipline, which may be a reason for the ongoing layoffs.
- Despite reporting high earnings, companies like Microsoft and Meta are also participating in staff cuts. Microsoft, for example, cut 1,900 roles in its gaming division in January 2024.
- Meta's decision to reduce its staff by 22% over the last year and make additional cuts in January 2024 led to a 12% increase in their stock value, reaching $450 a share at its peak in January.