Tech giants collectively staged a "slimming action" and thousands of jobs were reshuffled

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 media circle, and there is a great 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.

01

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 game division would lay off 1,900 people, accounting for about 9% of the department's 22,000 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 laid off a total of 11,000 employees in fiscal year 2023 (ending June 30, 2023), and the number of employees worldwide at that time was 221,000, a significant decrease from the 232,000 announced in December 2022.

02

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

On January 23, local time, eBay President and CEO Jamie Iannone announced in a memo to employees on Tuesday that the company will lay off about 1,000 jobs, accounting 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 consolidate 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 the imminent layoffs with the release of its third-quarter 2023 earnings report. According to the report, eBay's net revenue in the third quarter was $2.500 billion, an increase of 5% compared with $2.380 billion in the same period in 2022, and the net profit from continuing operations was $1.306 billion. But on a non-GAAP basis, eBay's adjusted net income from continuing operations in the third quarter was $545 million, down 1% from $552 million in the year-ago quarter.

03

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 intelligence, which will involve the job adjustment of about 8,000 employees, who will be included in the voluntary leave plan and internal retraining measures, that is, employees are encouraged to voluntarily leave or carry out internal transfers. 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, which means 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, Europe's largest software company, has worked in recent years to shift 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.

04

Google's parent company Alphabet's X Lab, which is responsible for cutting-edge technology research, has laid off dozens of employees

On January 23, 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 positions, while looking for external investors to fund internal projects. In recent months, X Lab has been communicating and discussing financing issues with VCs and other investors. It sought to adopt a new structure that would make it easier to spin off pilot projects from the division into independent startups, backed by 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 spin-off, X Labs will try to cooperate with more industries and financial companies, while streamlining the team and improving capital efficiency.

05

League of Legends developer Riot Games cut about 530 jobs

On January 23, Riot Games, the developer of League of Legends, announced that it would lay off 11% of its workforce, totaling about 530 jobs. Commenting on the reasons for the layoffs, Riot Games 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 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 progressing, its long-owned esports live streaming platform, Riot Esports Network, has ceased development. In a recent email statement, John Needham, president of Riot Esports, said: "We need to re-evaluate whether this strategy is appropriate and take into account the current industry landscape and competitive landscape. ”

06

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

Recently, German auto parts giant Bosch announced that it 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 resources and reduce expenditure. In fact, in December 2023, Bosch announced that it would cut 1,500 jobs in the drive business, including R&D, sales and management, 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 as many as 12,000 employees, which is equivalent to a quarter of ZF's total number of employees in Germany, and it plans to transfer some functions to lower-cost countries. The move sparked strong discontent among workers, and on the day the news was announced, 3,000 people at ZF held a protest at its headquarters against 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, Continental also plans to lay off 5,500 jobs worldwide, equivalent to 5.5 percent of the nearly 100,000 employees in the automotive business. 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.

07

"Los Angeles Times", "Time" and many other American media outlets laid off employees

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 "headwinds" in the U.S. media industry - due to weak advertising, changing audience behavior, and cannibalization by social media and streaming media, many U.S. media outlets have announced layoffs, setting off a wave of strikes to protest layoffs and cost cuts.

On January 23, local time, the Los Angeles Times announced a layoff of more than 20% of its workforce, affecting at least 115 employees, including reporters, senior 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 cut in 2023.

On the same day, Time magazine laid off about 15 percent of its unionists, for a total of about 30 employees, including editorial, technical, 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, the website "Business Insider", which focuses on financial reporting, announced that it would lay off about 50 people, 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 mass layoffs have also sparked a wave of strikes in the U.S. media industry, with several media employees going on strike in January to protest against the 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 to protest the company's decision to lay off employees, and on the 25th, hundreds of employees of Forbes and the New York Daily News held a historic strike to protest the company's cost cuts.