Tech giants Microsoft and Alphabet have recently announced significant layoffs within their respective departments.
Around 1,000 employees are expected to be impacted by Microsoft’s layoffs. This includes those working on the HoloLens 2 in the mixed reality department. The Azure for Operators and Mission Engineering departments have also experienced substantial cuts. Despite this, Microsoft remains fully committed to the Department of Defence’s IVAS programme and will continue to provide cutting-edge tech to support soldiers.
Alphabet, on the other hand, laid off approximately 100 employees from various teams in Google’s cloud unit, which is one of its fastest-growing businesses. The goal of these cuts is to better align the go-to-market organisation across teams.
These layoffs have come as a surprise, especially considering the strong financial performance of both tech companies in the first quarter of 2024. Microsoft’s revenue for the third quarter increased by 17% year-over-year to $61.9 billion, surpassing analyst estimates. Similarly, Alphabet’s first-quarter earnings showed a 15% year-over-year increase in revenue to $80.539 billion, exceeding expectations.
Although the tech industry has experienced layoffs throughout 2024, May saw a notable decrease compared to previous months. According to layoffs.fyi, 39 companies laid off a total of 9,742 employees in May. This is a significant drop from April’s reported 21,473 layoffs across 50 companies. Google, for instance, let go of around 200 employees from its core tech teams, affecting engineering positions in Sunnyvale, California. Additionally, Indeed nearly fired 1,000 employees in May 2024.
Other tech companies, such as Toshiba and TikTok, have also implemented layoffs as part of their restructuring efforts. Toshiba laid off 4,000 employees domestically, while TikTok fired 1,000 operations and marketing employees globally. Walmart is reportedly cutting jobs and requesting employees at various tech hubs to relocate.
