Will there be mass layoffs in 2024?

KAKALI DAS

Are you aware of the latest work trend: remote layoffs, the apparent successor to remote work?

Here’s the scenario: you receive an email from the office, an invitation for a Zoom call with an unclear agenda. Upon joining, you discover that you are being laid off—suddenly without a job.

The start of the New Year saw further streamlining of the Tech Industry workforce, continuing the downsizing trend from the preceding year.

The first time this happened, the world was appalled. An online mortgage firm had laid off 900 employees, drawing significant criticism for its CEO, who happened to be of Indian origin. This took place in 2021.

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Now, it has become a regular occurrence—the most recent incident involves journalists, employees of the Los Angeles Times. This week, 115 of them were dismissed via a Zoom call.

This venerable American newspaper, with a history spanning 142 years, is facing its largest layoff to date. One-fourth of the newsroom staff has been let go, prompting the question: Why?

The paper experienced financial losses, and it seems the owners couldn’t sustain these employees. Consequently, they were let go in a notably harsh manner.

A mass layoff occurred in a single call, with disabled chat and no opportunity for questions and answers. It was a one-way communication process.

Layoffs, by nature, are distressing and even traumatic. While there’s no gentle way to execute them, it’s possible to be less harsh. Other companies should take note, especially considering the widespread occurrence of employee terminations.

eBay has laid off 1,000 employees, accounting for 9% of their workforce. As an online retailer, their CEO attributes this decision to escalating expenses. eBay joins a growing list of companies, including Google, Twitch, Audible, Discord, YouTube, and TikTok, that have implemented layoffs worldwide.

In this month alone, tech companies have terminated 11,000 employees, and the month is not yet over. The last two years have been challenging for them, marked by successive waves of layoffs.

In 2022, there were 164,000 layoffs. And, according to layoff tracker, Layoffs.fyi, 2.6 lakh people were laid off globally in 2023, of which 16,398 in India. In India, 4,700 employees were laid off in the EdTech sector followed by Food Finance, Retail, Consumer and Healthcare sectors.

They were hoping for a brighter 2024, but the outlook is grim so far, and this includes Indian companies.

Just a few days ago, Tata Digital laid off 150 employees from Cult.fit, its fitness brand. This trend might persist for a while.

Analysts foresee job cuts in start-ups, BPOs, and tech services during the first half of 2024, with a potential recovery anticipated in the second half of the year.

A recent survey was released for numerous countries where 100 Tech CEOs were polled. They were questioned about their plans for the upcoming year. Do you know what they shared?

Of these CEOs, 55% revealed that they are downsizing, optimizing costs, and reducing their workforce.

This trend isn’t confined to the tech sector; banks are also part of the downsizing trend. Citigroup has declared layoffs, with a substantial 20,000 employees being affected.

Honestly, it’s perplexing. Why are numerous companies letting go of so many employees?

2023 was rife with uncertainties – recession loomed, and inflation was spiraling out of control, causing concerns for companies. However, that’s no longer the case.

The majority of experts have dismissed the possibility of a global recession in 2024. Regarding inflation, the World Bank states that it is under control. Despite many companies reaping substantial profits, they are still cutting jobs.

Do you know why? It’s to enhance the bottom line. While technology is disrupting the job market, it’s not the sole factor at play.

CEOs and managers face pressure from investors, stockholders, and venture capitalists. They are expected to consistently deliver improved balance sheets and larger profits every quarter, not just once or twice.

The targets continue to expand in an endless cycle. Managers cut costs and implement layoffs. Where does that leave the employee?

It’s easy to recognize the downside, but why stress about what you cannot change? So, let’s attempt to view the glass as half-full.

There could be an opportunity for you here as companies aim to achieve more with less. To thrive in this market, you’ll need to be versatile, upgrade yourself, take initiative, and deliver beyond your Key Result Areas (KRA).

If you find yourself without a job, give yourself a break—remind yourself it’s not the end of the world, and get ready for the next challenge.

Certainly, there’s something better awaiting you.

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