Tech companies laid off 280,000 employees in 2024; 11,000 in 2025 already

The global tech industry experienced a turbulent year in 2024 with no signs of slowing down. According to a report by RationalFX, 280,991 employees lost their jobs as companies wrestled with economic uncertainty and shifting market demands. This indicates that the workforce crisis in big tech extends beyond a temporary correction; it has become the norm.

Overall, the report shows a trend of downsizing driven by cost-cutting measures and a reassessment of priorities following years of rapid growth. The large-scale implementation of artificial intelligence (AI) tools has also reshaped corporate structures and led to entire teams being eliminated.

According to the report, over half of these layoffs ( a total of 157,950) were announced by U.S. companies with PC maker, Dell leading the way with 18,500 positions. This was followed by Intel and Amazon, with each eliminating approximately 15,000 jobs. It also indicated that other major economies (China, India, Germany, South Korea, and Japan) also recorded a significant number of job losses in 2024.

But, their numbers are dwarfed by the numbers in the U.S. as seen in the chart below.

This is not surprising, because the world’s largest tech corporations are U.S. companies It is also because most comprehensive data sources for job cuts are oriented towards mostly American and English-speaking audiences. The mass layoffs in countries such as China are also rarely covered by Western media as the information is difficult to confirm.

Sectoral analysis of the numbers

According to the report, Dell topped the chart with 18,500 layoffs. According to the company, this is owing to the declining demand for personal computers and enterprise hardware. Following closely, semiconductor giant, Intel cut 15,100 positions amidst a downturn in chip sales and increased competition in the global semiconductor market.

The e-commerce titan Amazon also announced significant layoffs, cutting nearly 15,000 roles. These job reductions were part of the company’s ongoing restructuring, which began in late 2023 to streamline operations and adapt to changing consumer spending habits.

Electronics manufacturers weren’t immune, with Samsung laying off 14,455 employees, highlighting challenges in the global smartphone and appliance markets. Similarly, Toshiba cut 9,000 jobs as it restructured its struggling electronics and energy divisions.

The electric vehicle (EV) sector also experienced layoffs, despite its growth potential. Industry leader Tesla laid off 14,000 employees as it sought to reduce operational costs amid increasing production expenses. Chinese EV maker Li Auto followed suit, cutting 10,000 jobs, reflecting broader challenges in the Chinese automotive market.

Software and tech service providers also contributed significantly to the workforce reduction. Cisco reduced its headcount by 9,600, while SAP let go of 9,500 employees. Even Microsoft, known for its robust cloud and software business, announced nearly 5,000 job cuts.

Turkish food delivery app Getir cut 6,000 jobs, illustrating the broader impact of economic headwinds on gig-economy businesses. Food and grocery delivery, in particular, grew immensely during the pandemic but have since been in a decline.

Similarly, fintech companies like Paytm and PayPal reduced their workforce by 5,000 and 2,500 positions, respectively, as funding slowed and profitability took centre stage.

Reasons for the layoffs

Analysts believe that the layoffs are largely owing to redundancies in many tech companies including Silicon Valley players because of over-hiring during the pandemic. Other reasons include recession fears and increased focus on AI.

Interestingly, 2023 and 2024 were profitable for tech companies as many reported increased revenues, high earnings for shareholders and expansion to new markets. Yet, many have announced restructuring plans to increase efficiency and profitability using AI.

For instance, Dell saw its revenue grow on an annual basis for three consecutive quarters, with an increase of 9.51% in November 2024. Its gross profit, however, has shrunk between 2023 and 2024 by more than $1.8 billion. Amazon, on the other hand, performed well across the board: net sales grew by 11% to $158.9 billion in the third quarter of 2024, operating income increased by 55.6% to $17.4 billion, and net income grew by 55.2% to $15.3 billion ($1.43 per diluted share, up 52.1%).

The question then is: why are tech companies laying off people when they should be hiring?

In reality, data shows that companies employed a lot of workers in 2024 but the roles were different from what was obtainable around ten or twenty years ago. Many of the positions were temporary, gig-like jobs. And, as companies shift to new technologies such as AI, certain jobs become redundant while new positions are opened.

For example, German software company, SAP announced a restructuring programme that led to between 9,000 and 10,000 total layoffs. Although the company claims that not all employees were laid off, with some being offered “AI-centric” positions. What is clear is that the number of roles created by “prioritising strategic growth areas, including business AI” is way lower than what was lost.