Following a turbulent start to the year with mass layoffs in tech, recent months have seen a decline in the pace of job cuts, pointing to a more stable industry landscape. In September, about 3,941 employees were laid off by 35 tech companies, while October marked a further drop, with 3,080 positions eliminated across 30 companies, according to data from layoffs.fyi. October’s figures mark one of the lowest layoff points of 2023, continuing a downward trend that has brought some relief to the tech workforce.
Despite these encouraging numbers, several firms still made significant cuts. October saw four companies laying off more than 400 employees each, while another four trimmed approximately 300 jobs each. Yet, the overall layoff figures remain the lowest of the year in both total job losses and number of affected companies, as per media reports. This pattern reflects broader industry stabilization, following peak layoffs in January, February, and April.
October layoffs affected a range of tech sectors, including cryptocurrency, consumer services, finance, and healthcare. Among the companies making strategic reductions, Dropbox, a major US cloud storage provider, downsized by 527 employees, a 20 per cent reduction in its workforce. CEO Drew Houston attributed the move to a transitional focus on streamlining operations and creating a leaner team structure.
Similarly, Kraken, a cryptocurrency exchange, eliminated approximately 400 roles, about 15 per cent of its workforce, as part of a corporate restructuring that also introduced a co-chief executive to oversee these changes. TikTok also cut hundreds of jobs globally, with the majority reportedly in Malaysia, citing increased reliance on AI for content moderation. ByteDance, TikTok’s parent company, initially reported more than 700 job cuts but later clarified that the figure was closer to 500.
Finance and crypto companies like Lending Club and Karat Financial also faced continued market challenges, leading to layoffs in October. The healthcare sector was affected as well, with platforms like Nomad Health and Carbon Health reducing staff. Much of the year’s layoffs were concentrated in traditional tech roles such as software, hardware, and social media, while some fintech and AI roles were affected as automation adoption increased, making certain positions redundant.
By August, the tech sector had lost over 1,36,000 jobs across 422 companies, with industry giants like Intel, IBM, and Cisco joining the trend along with smaller startups. As tech companies adjust to new market conditions and increased automation, the gradual decline in layoffs suggests a possible stabilization, offering a hopeful outlook as the year draws to a close.
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