A study conducted by the American Psychological Association shed light on the profound psychological toll of being laid off, ranking it among the most distressing life events — surpassing even the anguish of divorce or the loss of a loved one. Adding weight to this revelation, Edelman's 2022 Trust Barometer revealed that a staggering 85% of respondents identified job loss as their primary concern. Despite the grim reality painted by these findings, the year 2023 witnessed an alarming trend: a staggering 96% of businesses resorted to some form of downsizing, as reported by data from Randstad RiseSmart. 

Yet, the spectre of job insecurity still looms large over the workforce. As we venture into 2024, the reverberations of these actions continue to be felt. The tech sector, in particular, bore the brunt of this turmoil, with nearly 25,000 workers facing layoffs in the first month of the year alone. And the ripple effect extends beyond tech, touching industries ranging from gaming to retail and even human resources. Let’s delve into the heart of the matter, uncovering the companies behind these layoffs. 

Biggest layoff of 2024

1. Google

Google initiated extensive layoffs across several divisions, including hardware, voice assistant, advertising sales, and YouTube teams. Additionally, its research firm X, under Alphabet, also underwent downsizing. The restructuring aimed to streamline operations and attract external investment for ongoing projects. Astro Teller, head of X, highlighted the emphasis on spinning out more projects independently. 

2. Cult.fit

Cult.fit, formerly known as Cure.fit, implemented its first round of layoffs in three and a half years, affecting approximately 150 employees. The terminations spanned various departments, impacting senior and mid-level positions. Despite media reports estimating the layoffs between 130 to 150 employees, Cult.fit countered suggestions that the move aimed to extend its financial runway or reduce costs. Instead, a company spokesperson clarified that the terminations formed part of their routine annual planning process, intended to streamline operations for enhanced productivity and future profitability. 

3. Tata Steel

Tata Steel announced plans to shutter two blast furnaces at its British facilities by year-end, a move set to impact approximately 2,800 jobs at its Port Talbot steelworks in Wales. This decision aligns with Tata Steel's strategic pivot towards lower carbon electric arc furnaces, bolstered by a substantial government investment of £500 million ($634.10 million), as reported by Reuters. Anticipating around 2,500 job reductions over the next 18 months, Tata Steel will prioritise voluntary redundancies as part of its workforce adjustment strategy. CEO T V Narendran emphasised the imperative of this decision for the company's long-term sustainability, despite acknowledging the inherent challenges. 

4. Amazon

Amazon initiated another round of job cuts, affecting 'several hundred' employees within its Prime Video and MGM Studios division. Mike Hopkins, Senior Vice President of Prime Video and Amazon MGM Studios, outlined in an internal memo that these layoffs are part of the company's strategy to streamline operations by prioritising high-impact content and product initiatives. While the precise number of affected employees remains undisclosed, Amazon clarified that the reduction would constitute a relatively small percentage of Hopkins' team. 

These job cuts are attributed to challenges stemming from Amazon's acquisition of MGM for $8.5 billion in 2022. Despite the company's ongoing efforts to optimise its entertainment offerings, it acknowledges the enduring impact of the acquisition as a contributing factor to this decision. This latest move by Amazon is in alignment with its subsidiary Twitch, which recently announced intentions to lay off approximately 500 employees, representing around 35% of its workforce. Across the broader tech industry, including Silicon Valley and global offices, there has been a trend of layoffs, with the tech giant shedding over 27,000 jobs last year alone.

5. Flipkart

Flipkart announced a 5-7 per cent reduction in its workforce based on performance evaluations. These cuts, conducted as part of the company's annual performance reviews, are slated to be finalised between March and April. Flipkart, in an effort to rein in costs, has abstained from new hiring over the past year and is presently engaged in a $1 billion financing round. With a focus on optimising resources, the company is actively discussing restructuring plans and outlining its roadmap for 2024 in forthcoming meetings with senior executives. 

Despite postponing its initial public offering until 2024, Flipkart's recent acquisitions, including Cleartrip, have contributed to a gross merchandise value (GMV) estimated at approximately $1.5-1.7 billion. The company remains committed to streamlining operations and reassessing its business strategies, recently securing $600 million in fresh capital from Walmart as part of its ongoing funding efforts.

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6. Frontdesk

Frontdesk made waves with its sudden decision to dismiss its entire 200-person workforce via a brief two-minute Google Meet call. This sweeping action impacted employees across all categories, from full-time workers to part-time staff and contractors, indicating the startup's potential closure. While CEO Jesse DePinto hinted at the company's intent to pursue state receivership as an alternative to bankruptcy, Frontdesk has yet to issue an official statement on the matter. 

7. Salesforce

Salesforce made headlines with its recent announcement of approximately 700 employee layoffs, constituting roughly 1% of its workforce, according to Wall Street Journal. This downsizing comes in the wake of a similar action last year, during which the company reduced its staff by around 8,000 employees, driven by investor pressure to cut costs. The decision reflects Salesforce's ongoing efforts to navigate the shifting landscape of the tech industry, where many companies are grappling with similar challenges and turning to layoffs as a means of adaptation. 

8. Swiggy

Swiggy laid off approximately 400 employees, constituting about 6% of its total staff. This strategic realignment effort aimed to manage costs amidst challenging funding conditions. The layoffs primarily impacted departments such as customer support and tech teams. The restructuring initiative, which began last month at Swiggy's Bengaluru headquarters, is ongoing and could potentially affect sales, customer service, and tech divisions. There are concerns that further reductions may follow, particularly in the tech and sales departments, with a focus on high-salaried employees. 

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9. Microsoft

Microsoft embarked on a new round of layoffs within its gaming division, encompassing entities such as Activision Blizzard and Xbox. The company reduced its gaming workforce by approximately 1,900 positions out of a total of 22,000 team members. This decision, though challenging, is part of Microsoft's broader efforts to streamline operations and prioritise new initiatives. Phil Spencer, CEO of Microsoft Gaming, addressed employees in an internal memo, acknowledging the difficult decision to downsize the gaming workforce.

10. Discord

Discord, the widely-used messaging platform popular among gamers, confirmed the layoff of 170 employees, representing approximately 17 per cent of its workforce in January. This announcement follows a previous reduction of about 40 jobs in August, indicating a broader trend of companies implementing cuts at the start of the year. In an internal memo, Discord CEO Jason Citron explained that these layoffs are essential for the company to enhance efficiency, especially following a significant hiring surge in 2020. The Verge was the first to report on the job cuts and shared insights from Citron's memo. According to PitchBook data, Discord had a workforce of 870 employees as of August.

11. Nokia 

In a recent reorganisation, Nokia appointed Tarun Chhabra as the new head of Nokia India, part of a global restructuring aimed at streamlining operations and significant layoffs. Chhabra, previously head of mobile networks and senior vice president at Nokia, succeeds Sanjay Malik, who will stay until March 31, 2024, to ensure a smooth transition. Chhabra will report to Tommi Uitto, president of Mobile Networks, overseeing both the Indian market and the mobile networks group's business. This restructuring is part of Nokia's global initiative to reduce jobs and enhance operational efficiency. Chhabra's appointment, effective April 2024, aligns with Nokia's focus on customer-centricity and business excellence.

12. Grammarly

Grammarly, the widely used AI-driven writing tool, implemented layoffs affecting 230 employees as part of a restructuring effort, with 82 of those impacted in the United States. The Ukraine-originated company, specializing in writing assistance and learning tools, stated that the workforce reductions are deemed essential in preparing for an AI-centric future. According to a state filing cited by the San Francisco Chronicle, the layoffs targeted key positions including the head of brand design, head of human insights, and 17 software engineers.

13. SpiceJet

SpiceJet, the Indian aviation company, reportedly planned to lay off more than 15% of its total workforce, according to media reports. The airline had been experiencing financial turbulence, resulting in delayed salary payments to employees for several months, with some not receiving their January 2024 salary. This situation arose shortly after the announcement of salary hikes for its pilots during its 18th-anniversary celebration in May 2023, following the initial round of salary revisions made in November 2022. The layoffs, which would have amounted to wages of up to INR 60 crore, were aimed at cost-cutting and attracting and retaining investors. Reportedly, the airline was eyeing a fund infusion of INR 2,200 crore, if everything went well.

14. Cisco

After issuing a companywide layoff notice earlier this month affecting approximately 5 per cent of its global workforce, Cisco Systems has provided further details regarding its cuts. The company revealed its intention to eliminate approximately 729 jobs in the San Francisco Bay Area by April. The most recent job reductions are concentrated in San Jose, Milpitas, and San Francisco, California, as indicated by the Worker Adjustment and Retraining Notifications (WARN) submitted by Cisco on February 15. According to CRN, the tech giant, headquartered in San Jose, California, confirmed on February 14 its plans for global job cuts to align expenses and investments with the prevailing macroeconomic conditions.

15. Sony

On Tuesday, Sony announced plans to reduce its workforce by about 900 positions at its PlayStation unit and shut down a studio in London. This move reflects challenges faced by the video game industry in recovering from a post-pandemic downturn. According to Reuters, the layoffs will affect approximately 8% of the division's employees across regions from the Americas to Asia. This announcement follows Sony's recent revision of its annual sales forecast for the PlayStation 5 console.

16. IBM 

IBM has been calling upon employees open to voluntary redundancy as it launches another round of global job cuts, with a particular focus on roles in Europe and specific departments expected to bear the brunt of the reductions. Dubbed as a ‘Resource Action’ by IBM, these layoffs were foreshadowed during a Q4 earnings call last month, minimizing the element of surprise. Although the current initiative is labelled as "transformative" by sources, CFO James Kavanaugh outlined in January IBM's aim to achieve a "$3 billion annual run rate in savings by the end of 2024," marking a notable increase from the initial target. 

A substantial 80 per cent of the reduction target is set for Enterprise Operations & Support (EO&S) and Q2C missions, as well as Finance & Operations, encompassing Procurement, CIO, HR, Marketing & Communications, and Global Real Estate. The European Works Council has conveyed to staff that approximately 50 per cent of IBM's reduction goal will impact staffing levels across Europe, as per The Register. Moreover, IBM is prioritizing voluntary redundancies over involuntary terminations for employees who choose to stay. However, the company has refrained from disclosing specific figures at this time.

In another development, IBM alerted its employees about impending staff reductions, with the company's marketing and communications departments expected to bear the brunt of these cuts. During a succinct meeting lasting about seven minutes, Jonathan Adashek, IBM's chief communications officer, relayed the announcement to unit staff, as per CNBC reports. 

17. YouTube

Employees at YouTube Music, contracted through Cognizant, found themselves unexpectedly laid off as the contract between Cognizant and Google came to an end. This development affected fewer than 50 workers at YouTube Music, who are affiliated with the Alphabet Workers Union, under the umbrella of Alphabet, Google's parent company. Unveiling such news to employees usually occurs through internal communication channels, such as email or HR meetings. However, in an unusual turn of events, a group of YouTube employees received this information publicly during a City Council hearing in Austin, Texas. 

A video clip of the incident, widely circulated on social media, captured the moment when a YouTube Music employee, while giving testimony, learned about the layoffs firsthand. "Sorry to interrupt, but they've just laid off all of us," one colleague informed, speaking into the microphone. This revelation abruptly ended the employee's allotted time for testimony, with a City Council member assuring further discussion on the matter later. The affected employees, subcontracted through Cognizant, experienced the fallout due to the expiration of the contract between Cognizant and Google, as reported by The Street. Despite the disruption, the employees at YouTube Music, represented by the Alphabet Workers Union, now face the challenge of navigating uncertain employment prospects.

18. Morgan Stanley

Morgan Stanley has implemented workforce reductions of around 9% within its asset management division in China, responding to challenges stemming from the country's faltering stock market. This downturn has cast a shadow over China's $3.8 trillion fund sector. In December, Morgan Stanley Investment Management China commenced staff downsizing, impacting roughly 15 employees, as reported by Reuters. 

This move marks the first round of layoffs at Morgan Stanley's China fund unit since acquiring full ownership of the struggling business by purchasing its local partner's 36% stake for about $54 million in 2023. The unit was rebranded as a wholly owned subsidiary in June, but its recent downsizing underscores the broader struggles faced by global financial institutions like JPMorgan and BlackRock in China, the world's second-largest economy. A prolonged economic slowdown has contributed to market challenges, with China's CSI300 index experiencing its lowest point in five years last month following a significant 11% decline in 2023.

19.Paytm Payments Bank

Amidst uncertainties surrounding its future, Indian digital payments giant Paytm is considering a reduction in its banking unit's workforce by nearly 20%. According to reports from Business Standard, Paytm Payments Bank is preparing to lay off employees from specific divisions, particularly in operations. Tracxn data from December 2023 indicates that the unit currently employs 2,775 individuals. Formerly known as One 97 Communications, Paytm holds a 49% stake in the bank. 

However, the Reserve Bank of India (RBI) issued a directive to the bank in late January, instructing it to halt credit transactions or deposits across various products, including savings accounts, prepaid cards, and digital wallets, by March 15, due to ongoing compliance breaches. Since the regulatory order coincided with the appraisal season, employees with low ratings have reportedly been asked to leave, as per a source from the banking unit. This development has led to frustration among employees, especially since the management had previously assured that no layoffs would occur.

20. Unilever

The wave of layoffs continues to sweep across industries, with Unilever becoming the latest company to announce significant workforce reductions. On Tuesday, Unilever disclosed plans to cut 7,500 jobs globally as part of its Growth Action Plan (GAP) acceleration efforts. The company aims to trim positions on a global scale, with restructuring costs expected to amount to approximately 1.2% of its revenue over the next three years. In addition to the layoffs, Unilever unveiled plans to operate its Ice Cream division as a separate entity and introduced a robust productivity program. 

These strategic initiatives are designed to streamline operations and enhance the company's focus moving forward. The separation of the Ice Cream division is anticipated to facilitate the execution of the Growth Action Plan (GAP), which prioritizes key initiatives for improved effectiveness, consistent revenue growth, enhanced productivity, and a performance-driven culture.

21. Citigroup

Citigroup continues its workforce reduction efforts, this time flagging around 20 positions within its UK investment bank as potentially at risk. Among those affected are three managing directors, four directors, and an additional three managing directors within its capital markets functions, according to sources familiar with the matter. The decision comes after Citigroup informed employees in March about its intention to streamline its UK investment bank operations. 

This move is part of the ongoing restructuring efforts outlined by CEO Jane Fraser in September, which aim to adapt to evolving market conditions in investment banking. Following earlier consultation processes involving job cuts, which began in October with approximately 250 roles in the UK, Citigroup is now undertaking further reviews as part of its strategic overhaul. The exact number of positions under scrutiny in this latest round, initiated in late November, has not been disclosed.

22. Vodafone

Vodafone Germany is gearing up to cut or relocate 2,000 jobs as part of a cost-saving strategy aimed at achieving €400 million (₹33.65 billion) in savings over the next two years. This move reflects the German branch's ongoing efforts to restructure operational expenses and investments, with a focus on improving performance in the Group's largest market. The two-year plan emphasizes reductions in "material, operating, and personnel costs" while diverting additional investments toward initiatives designed to enhance the customer experience. 

According to a Vodafone spokesperson, the company has already eliminated 900 jobs in Germany over the past two years. The impending reduction is expected to result in a 13% decline in the OpCo's current employee count of 15,000, as reported by Telcotitans. While some positions will be relocated, others will be affected by the introduction of automation, which is poised to take over more manual tasks in the future. Nevertheless, the spokesperson noted that job cuts would represent only a "minor part" of the overall targeted cost savings, with the majority stemming from efforts to streamline complex structures and modernize network elements and IT systems.

To share information about layoffs, pay cuts, or other workforce-related changes, kindly send us an email at samriddhi.s@gopeoplematters.com. We welcome your insights and contributions to our reporting.