Tech layoffs in 2024: Flipkart, Paytm, HumaneAI, Amazon and more slash staff en masse

The tech industry is experiencing a significant surge in layoffs in the first weeks of 2024, as major companies such as Amazon, Paytm, Flipkart, Unity, and Humane announce workforce reductions affecting thousands of employees.

Here are five noteworthy tech layoffs that have unfolded this week:

Amazon cuts staff across companies
Amazon.com’s live streaming platform, Twitch, is planning to lay off approximately 500 employees, constituting around 35 per cent of its total staff.

This move is set to occur as Twitch contends with losses and the recent departure of top executives. Despite efforts to increase revenue through advertising, Twitch remains unprofitable nearly a decade after being acquired by Amazon.

In a new report, Reuters claims that Amazon if also seeking to terminate a significant portion of staff from Prime Videos and MGM Studios.

Paytm lays off over 1000 employees
Paytm’s parent company, One 97 Communications, has terminated over 1000 employees across departments, representing over 10 per cent of Paytm’s total workforce.

The job cuts follow Paytm’s withdrawal from small-ticket lending services and its ‘buy now pay later’ offering. Additional cost-reduction measures are expected as part of the ongoing realignment.

Flipkart contemplates laying offs of 1100-1500 Employees
– Indian e-commerce giant Flipkart is considering laying off 5-7% of its workforce, potentially affecting 1100-1500 jobs. This move comes after a year-long hiring freeze and ongoing annual reductions based on employee performance. The restructuring is set to be finalized next month, coinciding with Flipkart’s 2024 roadmap.

Unity to cut 25 per cent of workforce
Unity Software, a major videogame software provider, has announced plans to lay off about 25% of its global workforce, amounting to 1800 jobs. This marks the “largest workforce reduction in the company’s history” and is expected to be completed by the end of March.

The decision follows a series of layoffs in the past year as Unity aims to refocus on core offerings and drive profitability.

Humane cuts 4 per cent of staff right before they launch their first product
AI startup Humane, gearing up for the launch of its first product, has laid off 10 employees, constituting 4% of its staff. Described as a cost-cutting measure, the move comes as the company communicates reduced budgets for 2024. Humane is set to release a $699 screenless, voice-controlled AI pin in March.

The wave of layoffs across the tech sector is attributed to economic uncertainty and over-hiring during the pandemic boom years. The rapid growth in demand for digital services during the pandemic prompted companies to expand their workforce significantly. However, as economic conditions worsened in 2022, firms faced declining revenue and profits, leading to aggressive cost-cutting measures and layoffs to adapt to the economic slowdown.

(With inputs from agencies)