TECH

See 4 technology companies that started 2024 with team cuts


The year has barely started, but large technology companies have already been cutting staff and making mass layoffs. The tech industry has been facing this problem since 2022, layoffs continued to rise the following year, and in 2024 layoffs have not yet started to slow down.

See below the companies that have made cuts to their staff:

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1. Sony Interactive Entertainment

Image: rafapress/Shutterstock

Sony announced that it will lay off around 900 employees from the PlayStation division worldwide. The number corresponds to 8% of Sony Interactive Entertainment employees. The company stated that it needed to take a step back to prepare for the future and changes in the gaming market.

Sony also highlighted that several Playstation studios will be affected. The studio in London, for example, will be closed. The space in the city of Liverpool, also in the United Kingdom, called Firesprite studio, will undergo reductions.

In a note published by the company on February 27, 2023, the CEO and president of Sony Interactive Entertainment, Jim Ryan, released the email in which he announced the team's cuts.

According to the document, the company's leaders made this decision when taking into account the long-term sustainability of the business. The goal is to make resources more efficient.

The announcement comes days after the company failed to reach the sales target for the PlayStation 5, as reported by Bloomberg. This caused a drop of US$10 billion in the value of Sony's shares.

2. Google

Google
Image: nitpicker / Shutterstock.com

After dismissing 12,000 people from its workforce in 2023, in the first month of this year Google laid off a thousand more.

According to the technology website The Vergethe areas of devices – responsible for the Pixel smartphone, for example –, engineering and Google Assistant were those that suffered the cuts.

3. Amazon

amazon
Image: Jonathan Weiss/Shutterstock

Jeff Bezos' company underwent several employee cuts throughout January 2024, as shown in the newspaper Business Insider. In the first month of the year, Amazon laid off 100 employees from the Audibles team, the big tech arm responsible for audiobooks and podcasts. The number was equivalent to 5% of employees in the area.

Then came layoffs of 5% of employees on the Buy Now with Amazon Prime division team. Launched in 2022, the program offered fulfillment and delivery services to retailers. The company also stated in January that it intended to make cuts to the Prime Video streaming teams and the Amazon MGM Studios production company.

4. Duolingo

duolingo
(Image: Sam Kresslein / Shutterstock.com)

Language learning app Duolingo has also been reducing its workforce as it replaces employees with artificial intelligence. According to The Washington Post, the number of people disconnected is uncertain. But the movement has been happening since 2023.

Last year, company spokesperson Sam Dalsimer confirmed to the newspaper that around 10% of Duolingo employees had been laid off by the end of 2023. But he did not provide the exact number of layoffs.

The majority of those who lost their jobs were self-employed employees and did not have the same benefits and security as the company's formal employees. These were, in general, translators who worked formulating language lessons and thinking of ways to translate sentences from one language to another.

How many layoffs were there?

In 2023, the technology sector was responsible for the highest number of layoffs among all industries, with more than 168,000 jobs cut, according to consultancy Challenger, Gray & Christmas. The number represents a 73% increase in layoffs compared to 2022.

“Employees are still extremely cautious and in cost-cutting mode heading into 2024. So the hiring process will likely slow down for many job seekers and cuts will continue into the first quarter, but at a slower pace,” said the deputy. senior consulting president Andy Challenger.

For now, January has not brought about a slower pace of layoffs in the technology industry. According to a report from Challenger, Gray & Christmas in January, the first month of 2024 in the sector had the highest number of layoffs since May 2023. There were more than 15 thousand job cuts, an increase of 254% compared to the previous month .

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