Tech Layoffs Up Over 300% Month-Over-Month In January: 3 Companies With The Most Employees Laid Off So Far In 2024
Portfolio Pulse from Surbhi Jain
Tech sector layoffs surged by 304% in January 2024 compared to December 2023, with 28,963 employees laid off from 105 companies. Notable layoffs include Alphabet Inc (over 1,000 employees), PayPal Holdings, Inc (2,500 employees), Block Inc (over 1,000 employees), Microsoft Corp (1,900 employees), Salesforce Inc (700 employees), and Unity Software Inc (1,800 employees). The layoffs are attributed to restructuring and cost-cutting efforts.
January 31, 2024 | 7:40 pm
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NEGATIVE IMPACT
Salesforce Inc has implemented layoffs of close to 700 employees, about 1% of its workforce.
While the layoffs at Salesforce Inc are smaller in scale compared to others, they still reflect cost-cutting measures that could negatively impact the stock price in the short term.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Alphabet Inc started 2024 with layoffs of over 1,000 employees, following a larger layoff of 12,000 in 2023.
Layoffs suggest cost-cutting measures which may initially worry investors about company performance, potentially leading to a negative short-term impact on stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Microsoft Corp announced layoffs for its Activision Blizzard unit and Xbox division, totaling 1,900 employees.
The layoffs at Microsoft, particularly in high-profile divisions like Xbox and Activision Blizzard, could lead to short-term negative sentiment among investors.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 85
NEGATIVE IMPACT
PayPal Holdings, Inc has laid off 2,500 employees, 9% of its workforce, as part of a company-wide 'right-sizing'.
A significant reduction in workforce could indicate underlying financial or strategic challenges, likely leading to a negative perception and a potential drop in stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Block Inc, co-founded by Jack Dorsey, has initiated major layoffs affecting over a thousand employees.
The layoffs at Block Inc could be seen as a negative development, potentially reducing investor confidence and negatively impacting the stock price in the short term.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
NEGATIVE IMPACT
Unity Software Inc laid off 1,800 employees following an announcement of a 'company reset' by interim CEO Jim Whitehurst.
The substantial layoffs at Unity Software Inc, along with the term 'company reset', could signal significant restructuring, likely causing investor concern and a negative impact on the stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 85