The tech industry’s massive wave of layoffs in 2024 has shown no signs of slowing down, with several major companies across the sector announcing job cuts just this week.
Cisco cuts more than 4,000 jobs
Cisco has announced that it will be reducing its workforce by around 5%, which is approximately 4,250 jobs. This decision was not sudden, as it had been reported over the weekend by Reuters that the job cuts were imminent. According to sources familiar with the matter, the company intends to concentrate on high-growth areas. As per Cisco's data, it employed a total of 84,900 people at the conclusion of the 2023 fiscal year.
Nike to reduce its workforce by 1,600 people
Nike plans to reduce its workforce by 2%, or over 1,600 people, to cut costs and redirect resources towards categories like running, women’s apparel, and the Jordan brand. The job cuts will not affect those in stores, distribution centres, or the innovation team. Nike's CEO, John Donahoe, said that they are not performing at their best and must edit, shift, and divest less critical work to create greater focus. The company had 83,700 employees in May 2020 and aims to reduce up to $2 billion in costs over the next three years.
Paramount lays off 800 employees
Paramount is reducing its workforce by 3%, or 800 jobs, due to its struggle to transition from traditional TV to streaming. CEO Bob Bakish believes these cuts are necessary to return the company to earnings growth and execute its long-term vision. The layoffs affect employees across Paramount's portfolio, including Paramount Pictures, CBS, Comedy Central, MTV, Nickelodeon, BET, Paramount+, and Pluto TV. The transition to streaming has proven challenging for media companies, with Paramount facing revenue declines and multi-billion dollar streaming losses.
Instacart is laying off 7% of its staff
Instacart has announced job cuts to focus on promising initiatives. The company will eliminate around 250 jobs, which is approximately 7% of its total global workforce as of January 31, 2024. This restructuring plan is intended to create a more streamlined organisational structure at the company and enable teams to focus more on advertising campaigns and other significant projects.
BlackBerry lays off more staff and shuts down offices
BlackBerry, once a renovated phone maker and now a tech firm primarily focused on cybersecurity, is laying off staff and shutting down six of its 36 global office locations to reduce costs. The company has identified cost-saving efficiencies in its cybersecurity business, particularly in research and development. The restructuring efforts are part of the company's push to streamline operations and become profitable. BlackBerry is hoping to achieve positive cash flow in the coming fiscal year and operating cash flow positively by the fourth quarter of fiscal 2025.
Firefox-owner Mozilla is cutting 5% jobs
Mozilla, the maker of the Firefox web browser, announced on Tuesday that it will be cutting approximately 5% of its workforce, which amounts to 60 job losses, affecting those in product development roles.
In a statement, Mozilla said that they are reducing investment in some product areas to focus on the ones that have a higher chance of success. They plan to reallocate resources towards products like Firefox Mobile, where there is a significant opportunity to grow and establish a better model for the industry.
Farfetch plans to reduce its workforce by 25-30%
Farfetch, a global online luxury fashion retailer, will be reducing its workforce by 25% to 30% as part of its restructuring plan. This decision was made after the departure of José Neves, the company's former leader. The source stated that the company evaluated its priorities and resources and made the difficult but necessary decision to cut jobs and redundant functions globally. The company believes that this decision will allow it to focus on providing exceptional experiences for brands, boutiques, and customers and to operate in a strengthened position. The source also highlighted that despite the job cuts, Portugal will continue to be an important base for Farfetch.
Toast is laying off 550 employees
Toast, a restaurant software company, will cut around 550 employees to promote expense efficiency. This move aligns with the industry trend of workforce reductions since the start of 2024. The cuts will cost the company approximately $50 million.
Wint Wealth laid 20% of staff
Fintech startup Wint Wealth laid off 20% of its workforce during an internal restructuring. The layoffs impacted multiple departments, including marketing, sales, and tech. Wint Wealth confirmed the development, stating that the restructuring affected low-priority functions and led to 19 job losses.
Everybuddy Games shuts down
Everybuddy Games, the Israeli startup behind Lucky Buddies, has gone bankrupt with a debt of NIS 15 million. They raised $15 million in Series A funding but ended up with just seven employees. A trustee has been appointed to evaluate proposals for the sale of the company or its assets.
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