Massive Layoffs in 2024

According to ABC7:

2024 has already proven to be a difficult year for layoffs. A handful of companies have been making job cuts in recent weeks, bringing uncertainty for workers across industries.

REI

REI is laying off 357 workers, mostly in the outdoor retailer's headquarters and distribution centers. In a letter to employees, CEO Eric Artz noted that "outdoor specialty retail has experienced four quarters of decline - and that trend has been worsening." While REI was able to outperform this for much of last year, he said, this trend caught up to the company in the fourth quarter, and difficult conditions are expected in 2024.

Levi's

Levi Strauss & Co. is slashing its global corporate workforce by 10% to 15% in the first half of the year - as part of a two-year restructuring plan that seeks to cut costs and simplify its operations, the denim giant said. The layoffs on the same day Levi's unveiled a proposed 10-year extension to the naming rights for Levi's Stadium, home of the San Francisco 49ers, in a $170 million deal.

Microsoft

Microsoft is laying off some 1,900 employees in its gaming division, according to an internal company memo. The job cuts - which represent about an 8% reduction of Microsoft's 22,000-person gaming workforce - have arrived just over three months since the tech giant completed its $69 billion purchase of video game maker Activision Blizzard.

TikTok

TikTok said it's shedding dozens of workers in its advertising and sales unit. A spokesperson for the company confirmed that the social media platform is cutting 60 jobs. TikTok, which is owned by Beijing-based ByteDance, did not provide a reason for the layoffs.

Riot Games

Video game developer Riot Games, which is behind the popular "League of Legends" multiplayer battle game, is trimming 11% of its staff. The company, which is owned by Chinese technology giant Tencent, said 530 jobs were being eliminated.

Wayfair

Online furniture seller Wayfair is cutting about 1,650 jobs or 13% of its global workforce. The restructuring is set to reduce team sizes across the company and reduce seniority in certain roles with the company planning to "rebuild with modified leveling" this year, CEO and co-founder Niraj Shah said.

Google

Google said it was laying off hundreds of employees working on its hardware, voice assistance, and engineering teams. The cuts follow pledges by executives of Google and its parent company Alphabet to reduce costs. A year ago, Google said it would lay off 12,000 employees, or around 6% of its workforce.

Amazon

Twitch, which Amazon owns, is cutting more than 500 jobs in a bid to save on costs. The video streaming platform's CEO Dan Clancy said in an email to employees that even with cost cuts and growing efficiency, the platform "is still meaningfully larger than it needs to be given the size of our business."

LiDAM:

What do we see here?

The current economic landscape in 2024 has led to a notable trend of workforce reductions across various industries. This wave of layoffs signifies a strategic shift as companies are compelled to streamline operations and minimize costs among challenging market conditions. These decisions, while difficult, are indicative of the need for businesses to adapt to a rapidly changing economic environment. The trend underscores the importance of agility and efficiency in corporate strategies. It also highlights the evolving nature of the global economy, where companies must balance growth aspirations with financial sustainability and market realities.

Possible solution?

To mitigate layoffs, companies should consider diversifying their business models to stabilize revenue across various market segments. Investing in employee skill development is crucial for enhancing workforce adaptability in response to changing market needs. Additionally, adopting technological advancements can lead to increased efficiency and new revenue opportunities, but it should be balanced with comprehensive retraining programs to equip employees for evolving roles.