Tech and Retail Giants Slash Jobs Amid AI Investments and Economic Shifts


Last updated: January 30, 2024

2024 has kicked off with a wave of job cuts across major corporations in the media, retail, and tech sectors. These companies are trimming costs, investing in AI, and adjusting to high interest rates and the post-pandemic economic reality.

Tech and Retail Giants Slash Jobs Amid AI Investments and Economic Shifts
Courtesy of: https://www.modelry.ai

Google, owned by Alphabet, has been at the forefront, axing hundreds of jobs in January. The cuts, affecting hardware, voice assistance, and engineering teams, are part of a strategy to “responsibly invest in our company’s biggest priorities,” according to a company statement. Alphabet CEO Sundar Pichai has hinted at more layoffs to come as the company races to dominate in AI.

Microsoft and Riot Games have also announced significant job cuts. Microsoft is reducing its gaming division by 1,900 jobs, while Riot Games, the developer behind “League of Legends,” is cutting 530 jobs to move “toward a sustainable future.”

TikTok, owned by ByteDance, and several Amazon-owned companies, including Audible and Prime Video, have also made cuts. Salesforce, the San Francisco-based cloud computing company, has shed 7,350 workers and plans to close some offices to save on real estate costs.

In the retail sector, eBay, REI, Levi’s, Macy’s, and Wayfair have all announced layoffs. eBay is cutting 1,000 jobs, REI is laying off 357 workers, and Levi’s plans to cut 10% to 15% of its workforce. Macy’s, struggling to adapt to the shift towards online shopping, is laying off 3.5% of its employees and closing five stores. Wayfair is reducing its workforce by 13% after over-hiring during the pandemic.

These layoffs reflect a broader trend of companies adjusting to a new economic reality. As Alphabet CEO Sundar Pichai put it, “we hired for a different economic reality than the one we face today.” The road ahead may be tough, but these companies are making hard decisions now in the hope of a more sustainable future.

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