In 2024, the U.S. tech industry has witnessed a wave of significant layoffs, with Tesla Inc. (NASDAQ:TSLA) leading the charge with its strategic downsizing.
According to CNBC, citing internal data, the electric vehicle (EV) automaker reduced its workforce by at least 14% this year. This reduction slashed Tesla's global headcount to just over 121,000.
In April, Tesla CEO Elon Musk announced a company-wide cut exceeding 10% of its staff. By mid-June, internal records showed the workforce reduction reached at least 14%. Musk cited inefficiencies within the company as a driving factor behind these cuts.
Also Read: Elon Musk Believes Pop Singer Justin Timberlake Could Have Avoided DWI Charges Had He Been Driving A Tesla And Not BMW
Musk has also mentioned plans to reinstitute stock options for exceptional performance.
While Tesla's layoffs have made headlines, several other tech giants have also undertaken significant workforce reductions so far this year.
| Company | # Total Laid Off YTD | % | Location HQ | Industry | Date(s) | |
| 1 | Tesla | 14500 | 10% | Austin | Transportation | 14000 on 15/4/2024+ 500 on 30/4/2024 |
| 2 | Dell | 6000 | 5% | Austin | Hardware | 25/3/2024 |
| 3 | Cisco | 4250 | 5% | SF Bay Area | Infrastructure | 14/2/2024 |
| 4 | Xerox | 3000 | 15% | Norwalk | Hardware | 3/1/2024 |
| 5 | Microsoft | 2900 | Seattle | Other | 1900 on 25/1/2024 + 1000 on 3/6/2024 | |
| 6 | PayPal | 2585 | 9% | SF Bay Area | Finance | 2500 on 30/1/2024 + 85 on 18/6/2024 |
| 7 | Unity | 1800 | 25% | SF Bay Area | Other | 8/1/2024 |
| 8 | Wayfair | 1650 | 13% | Boston | Retail | 19/1/2024 |
| 9 | Expedia | 1500 | 8% | Seattle | Travel | 26/2/2024 |
| 10 | 1000 | SF Bay Area | Consumer | 10/1/2024 |
Source: Layoffs.fyi
Here's a look at the biggest layoffs so far in 2024:
- Tesla: 14,500 jobs
- Tesla's workforce reduction follows a long period of growth and aims to streamline operations. The company's first-quarter revenue dropped by 9%, reflecting increased competition and a maturing product lineup.
- Dell Technologies Inc (NYSE:DELL): 6,000 jobs
- Dell, headquartered in Austin, Texas, announced layoffs affecting 5% of its workforce, citing a need to align its resources with market demands.
- Cisco Systems Inc (NASDAQ:CSCO): 4,250 jobs
- Cisco's layoffs impacted 5% of its staff, primarily in the SF Bay Area, as the company navigates a challenging business environment.
- Xerox Holdings Corp (NASDAQ:XRX): 3,000 jobs
- Xerox, based in Norwalk, Connecticut, cut 15% of its workforce at the start of the year to restructure its operations.
- Microsoft Corp (NASDAQ:MSFT): 2,900 jobs
- Microsoft announced layoffs on two separate occasions, reflecting ongoing adjustments to its workforce in response to market conditions.
- PayPal Holdings Inc (NASDAQ:PYPL): 2,585 jobs
- PayPal's layoffs, affecting 9% of its employees, were part of a broader strategy to streamline its business and improve efficiency.
- Unity Software Inc (NYSE:U): 1,800 jobs
- Unity, a game development company based in the SF Bay Area, reduced its workforce by 25% as it adapts to changing industry dynamics.
- Wayfair Inc (NYSE:W): 1,650 jobs (13%) – January 19
- Wayfair's layoffs, affecting 13% of its staff, were driven by a need to align its resources with its strategic priorities.
- Expedia Group Inc (NASDAQ:EXPE): 1,500 jobs
- Expedia's workforce reduction, impacting 8% of its employees, was part of a restructuring effort to enhance operational efficiency.
- Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL): 1,000 jobs
- Google announced a workforce reduction affecting 1,000 employees, reflecting ongoing adjustments in response to market conditions.
The tech industry continues to face significant challenges in 2024, with companies like Tesla, Dell and Cisco leading the layoff trend.
As these organizations navigate a rapidly changing market, their workforce adjustments reflect broader shifts within the industry. Investors and employees alike are closely monitoring these developments as they unfold.