A CEO of a technology company fired hundreds of employees over a phone call. This news is nothing new as several IT companies have been on a firing spree since November 2023, and, unfortunately, the trend is still continuing in March 2024.

Tech giant Google has warned its employees to “brace for more layoffs”, as Alphabet removed thousands of its staff across different platforms in the first few weeks of 2024.

Apple, Amazon, Meta, Dell, Ericsson, Cisco, SAP among other tech companies, have been cutting staff for a few months now.

Let us look at the reasons in detail on why these companies have been laying off employees?

COST-CUTTING MEASURES

The tech companies, which have pared hundreds and thousands of jobs, have cited reasons such as cost management, overstaffing during pandemic and challenging markets for downsizing.

For example, Dell said it was cutting its workforce as a part of broader cost-cutting measure. It reportedly removed nearly 6,000 jobs at a time when the demand for the Dell PCs slowed down causing an 11% drop in the Q4 revenue.

Amazon and Meta, which went on a hiring spree post pandemic due to a demand for their services, have recently laid off its employees citing surplus of staff being redundant.

Zee Entertainment Enterprises Limited said it was overhauling its technology and innovation centre on the advice of the management, which means cutting down expenses by 50% and restricting the teams.

International Business Machines Corp (IBM) in March also announced layoffs in its marketing and communication division, the CNBC reported. Though it has not given a specific number.

German software company SAP announced its restructuring plan in January, adding that it will affect over 7% of its staff, that is roughly 1,08,000 employees. The company wants to expand its growth through Artificial Intelligence (AI) as it aims to become cloud-centric.

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