In a perplexing turn of events, the tech industry is witnessing a paradox where soaring stock values on Wall Street stand in stark contrast to a surge in layoffs. January 2024 has set a troubling record, with 23,670 workers facing layoffs from 85 tech companies, marking the highest monthly figure since March of the previous year, according to Layoffs.fyi.
As investors celebrate all-time highs for the Nasdaq and tech giants like Alphabet, Meta, and Microsoft breach fresh market cap milestones, the underlying employment landscape appears less rosy. The S&P 500 is breaking records, and the Nasdaq hasn’t seen such heights in two years, yet tech companies are downsizing at an accelerating pace.
This month’s job cuts include major players in the industry, with SAP announcing changes affecting 8,000 employees, Microsoft trimming 1,900 positions in its gaming division, and fintech startup Brex shedding 20% of its workforce. eBay also joined the fray, slashing 1,000 jobs, emphasizing the need for organizational agility.
Source:
www.cnbc.com/2024/01/26/tech-layoffs-jump-in-january-as-alphabet-meta-microsoft-reach-high.html