In the midst of Wall Street commemorating record highs and the S&P 500 breaking records, and major tech companies like Alphabet, Meta, and Microsoft soaring to new market cap heights, an unanticipated trend is on the rise. The market euphoria is somehow followed by a huge wave of layoffs by tech giants, with 23,670 jobs slashed in January alone. This is the highest number since March, when the industry peaked almost 38,000 job cuts.
In an unexpected turn of events, key players in tech are downsizing their workforce at an accelerating pace. SAP declared job changes or layoffs affecting 8,000 employees, while Microsoft cut 1,900 positions in its gaming division. Even industry giants like Google and Amazon are shedding hundreds of positions across various divisions. Last year, companies experienced the end of a decade-long bull market and in January 2023 alone almost 90,000 jobs were eliminated across 277 technology companies. This surge is however attributed to companies budgeting for the year ahead and emphasizing the potential for increased efficiency through strategic cuts.
