Set off another wave of layoffs! A number of tech giants around the world have announced job cuts

Mondo Technology Updated on 2024-02-01

In 2023, the tech industry experienced a massive wave of layoffs, with more than 260,000 people worldwide losing their jobs. At the beginning of 2024, the situation has not improved, and in less than a month, many global giants such as Microsoft, Google, SAP, and eBay have announced layoffs, spanning the technology circle, business circle and ** circle, and there is a tendency to spread.

According to relevant statistics, as of January 24, 63 technology companies around the world have laid off 10,963 employees this year.

Microsoft, the world's largest software company, will lay off 1,900 employees

On January 25, local time,Microsoft announced in an internal memo that the company's gaming division would lay off 1,900 people, accounting for 2About 9% of the 20,000 employees. Phil Spencer, CEO of Microsoft Games, called the layoffs a "painful decision" that would support those affected during the transition, including severance pay in accordance with local employment regulations. Going forward, Microsoft will continue to invest in areas of business growth and support its strategy to bring more games to more players around the world.

As for the specific reasons for the layoffs, Microsoft said that going into 2024, the leadership of Microsoft Games and Activision Blizzard is committed to aligning the strategy and execution plan with a sustainable cost structure. Together, the two sides set priorities and identified areas of overlap. It is worth mentioning that Microsoft has laid off a total of 110,000 people, and the number of employees worldwide at that time was 2210,000, compared to 23 in December 202220,000 people have dropped dramatically.

Overseas e-commerce giant eBay announced a reduction of 1,000 positions

On January 23, local time, eBay President and CEO Jamie Iannone announced in a memo sent to employees on TuesdayThe company will lay off about 1,000 jobs, which accounts for about 9% of full-time employees, and in the coming months, eBay will also reduce the number of contracts for alternate employees. Jamie Ianor also revealed that eBay's total headcount and expenses have outpaced the growth of the business, which is why this organizational change was implemented to integrate some teams.

This is the second layoff in 12 months, and back in February 2023, eBay announced layoffs of about 500 people, or about 4% of its workforce, due to a slowdown in consumer spending. Previously, eBay paved the way for imminent layoffs with the release of its third-quarter 2023 earnings report. According to the report, eBay's net revenue for the third quarter was 250 billion US dollars, compared to 23 in the same period in 2022$8.0 billion was up 5% compared to a 5% increase, excluding the impact of exchange rate changesNet income from continuing operations was 130.6 billion US dollars. However, on a non-GAAP basis, eBay's adjusted net income from continuing operations in the third quarter was 5$4.5 billion, compared to $5$5.2 billion, down 1 percent.

European software giant SAP has announced 8,000 layoffs

On January 23, local time, SAP announced a restructuring plan to promote the growth of artificial intelligenceThe plan will involve the reassignment of approximately 8,000 employees, these employees will be included in the voluntary leave program and internal reskilling measures, i.e., employees are encouraged to voluntarily leave or transfer internally. The company also said that the number of employees should remain unchanged (at current levels) by the end of 2024. SAP had approximately 108,000 full-time employees at the end of 2023, meaning that the restructuring will affect more than 7% of the workforce, with the vast majority expected to be confirmed in the first half of 2024.

SAP is Europe's largest software company and in recent years has worked to transform its enterprise business from a traditional licensing model to a cloud subscription model. SAP expects generative AI technology to fundamentally change its business, and the company has pledged to invest more than $1 billion to break new ground in AI-driven technology startups through its corporate capital arm, Sapphire Ventures.

Dozens of people have been laid off at X Lab, which is responsible for cutting-edge technology research under Google's parent company Alphabet

January 23rd,X Lab, a subsidiary of Google's parent company Alphabet, which is responsible for cutting-edge technology research, is planning to reorganize and eliminate dozens of logistics positionswhile looking for external investors to fund internal projects. In recent months, X Labs has been communicating and discussing financing issues with VCs and other investors. It is trying to adopt a new structure that will make it easier to spin off pilot projects from the division and become independent startups, with the backing of Alphabet and external investors.

X Lab is known for its mystery, where self-driving company Waymo, AR glasses pioneer Google Glass, as well as "brain-opening" technology ideas such as space elevators and teleportation were born. But to date, the research it has conducted has yielded little to no sustainable business. According to related reports, in order to achieve the goal of the spin-off, X Lab will try to cooperate with more industries and financial companies, while streamlining the team and improving capital efficiency.

League of Legends developer Riot Games cut about 530 jobs

January 23rd,League of Legends developer Riot Games has announced that it will cut 11% of its workforce, totaling about 530 jobs。Commenting on the reasons for the layoffs, Riot CEO Dylan Judja said that it was not a lack of profitability or reassuring investors, but rather that the company felt that the business was out of focus and too much spread across multiple projects. The layoffs will allow the company to focus more on its core content while investing less in non-important matters.

With the layoffs planned, its multi-year self-owned esports live streaming platform, Riot Esports Network, has ceased development. In a recent emailed statement, John Needham, president of Riot Esports, said: "We need to reassess whether this strategy is appropriate and take into account the current industry landscape and competition. ”

German auto parts giant Bosch plans to lay off about 1,200 employees

Recently,German auto parts giant Bosch has announced plans to lay off about 1,200 employees in the software and electronics division by the end of 2026, of which 950 are located in Germany. The main reason for the layoffs is the increase in energy factors and the cost of raw materials, and the company must increase its revenue and reduce expenditure. In fact, in December 2023, Bosch announced that it would cut 1,500 jobs in R&D, sales, and management in the drive business by the end of 2025.

There are also two other German component giants that are undergoing large-scale layoffs.

On January 18, local time,ZF labor representatives said that ZF is considering closing two German factories and laying off up to 120,000 people, which is equivalent to a quarter of ZF's total number of employees in Germany, and plans to move some of its functions to countries with lower costs. The move sparked strong dissatisfaction among workers, and on the day the news was announced, 3,000 ZF people held a ** event at the headquarters to oppose the layoffs. According to ZF, the labor required to manufacture components for electric vehicles is almost halved compared to conventional combustion vehicles, "We want to keep jobs, but the transition to electrification means fewer jobs." ”

In addition to that,Continental also plans to cut 5,500 jobs worldwide, equivalent to 5 of the nearly 100,000 employees in the automotive business5%。The layoffs will be part of a plan to save 400 million euros per year from 2025, with more than 1,000 jobs in Germany and the number of business areas in the automotive division reduced from six to five.

"Los Angeles Times", "Time" and many other American ** layoffs

It is worth mentioning that the wave of layoffs in the global technology industry has also spread to the media industry. At the beginning of 2024, there are signs of "headwind" in the U.S. media industry - due to weak advertising, changes in audience behavior, and cannibalization of the market by social ** and streaming**, many ** in the United States have announced layoffs, setting off a wave of strikes, laying off employees and cutting costs.

On January 23, local time,The Los Angeles Times announced layoffs of more than 20 percent of its workforce, affecting at least 115 employees, involving journalists, veteran editors, and columnists. The newspaper's Washington bureau suffered "devastating" layoffs, with bureau chiefs King, Brill Kelly, and a large number of editorial staff engaged in business and sports reporting being laid off. This is the largest layoff in the paper's 142-year history, and the second in less than a year, with 74 positions being cut in 2023.

On the same day,Time magazine laid off about 30 employees by cutting about 15 percent of its unionists, which involves editorial and technical matters, sales and studio operations. Most of the layoffs came from Time Magazine's children's edition, a news publication for schoolchildren. Jessica Sibley, the chief executive of Time magazine, wrote in an internal memo that the decision to lay off employees was not "made lightly", calling the layoffs part of a series of decisions aimed at "restructuring the company for long-term sustainability and growth."

On January 25, local time,Business Insider**, a financial reporting company, announced that it would lay off about 50 employees, accounting for about 8% of the number of employees. According to Business Insider, the decision builds on a strategy developed late last year to shift the focus of reporting from politics to core areas such as business and technology.

The large number of layoffs has also caused a wave of strikes in the U.S. media industry, and in January, a number of ** employees went on strike, ** company. On January 23, local time, more than 400 employees of Condé Nast Publishing Group, the parent company of well-known magazines such as "Vanity Fair" and "Vogue", held a 24-hour strike, and the company's layoff decision was made; On the 25th, hundreds of employees of Forbes and the New York Daily News staged a historic strike to cut costs.

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