May 2024 Layoffs: Over 9,000 Jobs Cut Across 39 Companies

• In May 2024, 39 companies laid off 9,742 employees, a decrease from April’s 21,473 layoffs.
• Major companies like Google, Indeed, Microsoft, and Tesla were among those reducing their workforce.
• Job cuts affected a variety of departments and locations, including California, Texas, and more.

Why Are These Layoffs Happening?

In May 2024, the tech industry saw significant layoffs, though the number was lower compared to previous months. According to layoffs.fyi, a website tracking global job cuts, 39 companies laid off a total of 9,742 employees. This is a substantial drop from April’s 21,473 layoffs across 50 companies. Major firms like Google, Indeed, Microsoft, and Tesla were among those cutting jobs.

Google, as part of Alphabet’s broader strategy to reduce its workforce by about 6%, laid off around 200 employees from its Core teams, primarily engineers based in Sunnyvale, California. Indeed announced significant layoffs, letting go of 1,000 employees, nearly 8% of its workforce, mainly affecting U.S.-based employees in research and development, as well as product delivery teams.

Microsoft’s gaming division faced layoffs, leading to the closure of several developers, including Arkane Austin, Tango Gameworks, and Alpha Dog Studios. While some employees will be relocated, others will depart. Tesla also trimmed its workforce by over 6,700 employees across various departments, including software, service, and engineering, impacting multiple locations such as Texas and California.

What Does This Mean for the Tech Industry?

These layoffs indicate a strategic realignment for many tech companies as they navigate economic challenges and adjust their workforce to meet evolving business needs. While the decrease in the number of layoffs from April to May is a positive sign, the tech industry continues to face significant workforce reductions. Companies are focusing on optimizing their operations, which often involves difficult decisions like job cuts to stay competitive and financially stable in a rapidly changing market.