Admin August 16, 2024
Cisco Shift To AI, Cybersecurity Leads To More Layoffs As Healthcare, Fintech And Robotics Tech Sectors See Some Total Shutdowns
Another big week for The Crunchbase Tech Layoffs Tracker with over 6,000 workers getting cut from sectors ranging from healthcare to software to robotics.
Leading the week in sheer numbers of reported affected workers is San Jose, California-based Cisco. According to a report from ABC News, the manufacturer of networking equipment, which has formed a partnership with chip giant Nvidia, says it is moving forward with planned investments in AI development startups. In addition, Cisco will continue its focus on the cybersecurity sector, which recently saw funding jump in the second quarter of this year. It’s unclear how many of the thousands of laid off workers are based in the U.S.
In total shutdown news, the robotics sector’s industrial automation startup Ready Robotics has called it quits. According to reports, an anticipated funding round for the Columbus, Ohio-based provider of robotics and automation operating systems fell through, leading to the shutdown.
Also throwing in the towel in the past week was San Francisco-based automated debt manager Tally. Founded in 2015, the startup, which helped people manage and pay off their credit card debt, had raised $172 million in funding rounds led by the likes of Sway Ventures, Andreessen Horowitz, Kleiner Perkins and Shasta Ventures.
And finally, this week’s tracker’s lone healthcare addition is DayTwo, a microbiome-based precision health company. Headquartered in Walnut Creek, California, the startup was founded in 2015 to promote the use of food as a pathway to metabolic disease remission. The shutdown really got started about a year ago when the company laid off a majority of its workers, retaining a small team tasked with continued customer support and further research.
New additions
The following companies were added to the tracker this week:
Tech Layoffs: US Companies That Cut Jobs In 2022, 2023 And 2024
By the numbers
Layoffs during the week ended Aug. 16, 2024: At least 6,200 U.S. tech sector employees were laid off or scheduled for layoffs, per a Crunchbase News tally.
In 2024: At least 83,962 workers at U.S.-based tech companies have lost their jobs so far in the year, according to a Crunchbase News tally.
In 2023: More than 191,000 workers in U.S.-based tech companies (or tech companies with a large U.S. workforce) were laid off in mass job cuts.
In 2022: More than 93,000 jobs were slashed from public and private tech companies in the U.S.
Companies with the biggest workforce reductions in 2023
Methodology
This tracker includes layoffs conducted by U.S.-based companies or those with a strong U.S. presence and is updated at least weekly. We’ve included both startups and publicly traded, tech-heavy companies. We’ve also included companies based elsewhere that have a sizable team in the United States, such as Klarna, even when it’s unclear how much of the U.S. workforce has been affected by layoffs.
Layoff and workforce figures are best estimates based on reporting. We source the layoffs from media reports, our own reporting, social media posts and layoffs.fyi, a crowdsourced database of tech layoffs.
We recently updated our layoffs tracker to reflect the most recent round of layoffs each company has conducted. This allows us to quickly and more accurately track layoff trends, which is why you might notice some changes in our most recent numbers.
If an employee headcount cannot be confirmed to our standards, we note it as “unclear.”
Frequently Asked Questions
What is a layoff?
A layoff can be either a permanent termination of someone’s employment — usually for cost-saving reasons — or a temporary one because there’s not enough work to justify a full workforce. Tech company layoffs generally fall into the permanent category.
A mass layoff is when a significant number of a company’s employees are cut in a short period of time, often as a result of economic conditions.
Why are tech companies doing layoffs?
Tech layoffs increased throughout 2022 and 2023. Companies have given various reasons for conducting layoffs.
Some companies — especially those in the e-commerce sector — nearly doubled their employee headcount to meet consumer demand during the COVID-19 pandemic’s stay-at-home mandates, and now find that they are overstaffed for the current economic climate.
Large tech employers such as Salesforce and Google parent Alphabet have noted that the recent layoffs follow several years of rapid hiring fueled by fast growth — between 2019 and 2022, some companies nearly doubled their employee headcount. Some large tech companies that have done layoffs have also cited a decline in their stock price, slowing sales and fears of a recession as reasons for downsizing.
What were the biggest tech layoffs of 2023?
Amazon layoffs led the 2023 numbers with 16,000 roles cut.
Layoffs at Alphabet, the parent company of Google, totaled about 12,000. Microsoft’s layoffs total about 10,000 workers, as do Facebook parent Meta’s layoffs. Together with Salesforce, these tech companies conducted the largest layoffs of the past two years, totaling tens of thousands of roles.
While those numbers are alarming, as of early April 2023 the combined layoffs at these companies represent only 8% of the number of new hires they made during the pandemic.
Many other venture-backed tech startups have also done layoffs, pointing to a slowdown in venture capital funding and falling startup valuations as factors in their decisions to conduct layoffs.
Are more tech layoffs coming?
What are signs that a company is planning layoffs?
Signs that may indicate a company is more likely to conduct layoffs include:
- A hiring, payroll or promotion freeze: Payroll is the most significant cost for most technology companies and often the first place company leaders will attempt to contain costs. Companies may do this by pausing hiring for all but the most mission-critical roles and by freezing promotions and pay raises for existing employees.
- Red flags in the company’s financial performance: A company that’s struggling with declining revenue or profit — or simply not growing at the rate anticipated — is more likely to conduct layoffs and other cost-cutting measures. Unfortunately, employees at many private startups are not privy to detailed financial information about their employers.
- Restructuring teams or departments: Companies may merge or consolidate teams in an attempt to streamline operations and cut costs. The redundancies that result from these restructuring moves often lead to job cuts. Companies may also increase their reliance on outsourced teams or contractors.
- Increased internal communication: Frequent communication to employees from management about the company’s financial challenges, workforce optimization, the need to reduce expenses, or the need for higher productivity might indicate that layoffs are under consideration. Venture-backed startups try to manage their cash runway — the amount of time they can continue operating at their current cash burn rate without fresh capital — and may also warn employees about the need to reduce cash burn.
- Unexpected changes in company policy: A company that suddenly mandates that employees who have worked remotely return to a physical office may be contemplating layoffs. Often, such policies are used as rationale to shed workers who don’t comply with the new mandates. Similarly, unexpected organizational assessments or audits of employee performance outside of regularly scheduled business reviews may be precursors to layoffs.
- Decreased workload or project cancellations: Other signs that a company is experiencing financial difficulties that could lead to layoffs include a noticeable reduction in workload for employees or major projects that are canceled or postponed.
- Other cost-cutting measures: Companies frequently pause or cancel perks and benefits including employee travel, catered meals or education or wellness stipends ahead of larger cost-cutting measures such as layoffs.
When will layoffs stop?
How many recent tech layoffs have there been?
Around 200,000 U.S. tech employees were laid off in 2023, according to our Tech Layoffs Tracker. That’s more than double the 93,000 estimated U.S. tech employees who were laid off in 2022.
Is selling the company a good option to avoid layoffs?
What jobs are being cut in tech layoffs?
Tech layoffs have hit across departments at many companies.
Many layoffs from the large tech giants were software engineers. Startups tend to be more likely to retain engineers in favor of doing layoffs in their talent and recruiting, marketing and other departments.
Google cut roles in its sales, recruiting, product and engineering teams. Amazon layoffs included jobs in its AWS cloud unit, at its social video platform Twitch, and in its advertising department. Meta CEO Mark Zuckerberg said the company’s recruiting department would be the first to see job cuts.
Where can I read recent tech layoff news?
Follow all of our tech layoffs news here and track which companies are cutting jobs with the layoffs tracker above.
Where can I see layoffs in the last 24 hours?
While not daily, this Crunchbase Tech Layoffs Tracker is updated weekly, if not more frequently, with the latest job cuts at U.S. tech employers.
Which companies are hiring for open tech jobs?
Many tech companies continue to hire for open roles, despite layoffs in the sector. Find out more about Crunchbase’s Actively Hiring filter and how you can find companies with multiple open roles.
Crunchbase News also highlights recently funded startups that are actively hiring in our weekly Who’s Hiring feature. You can find all of our job market-related news here.
