The early part of 2024 hasn’t been kind to tech workers, with recent statistics showing tech sector layoffs are outpacing terminations in 2023, CNBC reports.
So far, about 42,324 tech employees were let go in 2024, according to layoffs.fyi, which tracks layoffs in the tech industry.
That averages out to more than 780 layoffs per day this year. In 2023, nearly 263,000 tech employees got laid off, an average of about 720 daily.
Several factors are involved this year, with artificial intelligence at the top of the list. Companies need to free up cash to invest in the equipment that powers the AI models associated with newer technology, according to CNBC.
“The layoffs to the start of 2024 signal a dramatic shift in the tech industry,” says Jeff Shulman, professor at the University of Washington’s Foster School of Business. “We’re going to continue to see layoffs happen as the future of work has changed, as the future of technology has changed, and as investors’ appetite for risk and growth versus profitability has dramatically changed as well.”
The tech layoffs are happening parallel to the U.S. economy, adding 353,000 jobs in January, well ahead of forecasts.
