Global Layoffs Hit 11 Companies, Including Google and Amazon
Despite being just a month into 2024, international headlines are filled with news of layoffs. Even large corporations that were once considered “too big to fail” are resorting to workforce reductions due to financial difficulties, causing widespread concern. The global economy’s ability to recover and the possibility of renewed instability are being closely watched.
Among the companies announcing layoffs recently are tech giants such as Amazon, Google, Citigroup, Kiwi.com, Wipro, PayPal, SAP SE, eBay, SolarEdge, Discord, and Foodpanda, totaling 11 companies.
Notably, both Microsoft and Amazon have made significant moves in the tech industry. While they have recently downsized in the gaming and streaming media sectors, they are also planning substantial investments in the field of artificial intelligence (AI). Microsoft’s recent acquisition of Activision Blizzard, a major gaming company, resulted in the layoff of 1,900 game employees, constituting approximately 8% of Activision Blizzard’s total workforce. Additionally, German software giant SAP SE announced a $2.2 billion restructuring plan, with a focus on genAI, affecting 8,000 job opportunities.
Google, which laid off 12,000 employees in 2023, has continued its downsizing efforts. In the first month of 2024 alone, Google has already spent approximately $700 million on severance pay, resulting in the loss of around 1,000 jobs. Reports suggest that these layoffs will continue.
According to estimates by technology advisory firm Gartner, global IT spending is expected to grow by 8% in 2024, reaching $5.1 trillion. As the smartphone era matures and the adoption of technologies like cryptocurrencies/web3 and the metaverse lags behind, tech giants are gearing up for the immense growth wave in AI.
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