A Recap of Workforce Layoffs, From Google to the Banking Industry

The turnover from 2023 to 2024 was marked by significant layoffs within the global work landscape, fueled in part by artificial intelligence.

Google began the year with significant strategic changes in light of AI advancements. A key part of this metamorphosis was the potential axing of 30,000 roles within the ad sales division “as it plans to restructure teams, with AI aiming to boost operational efficiency.” The information comes from Sean Downey, head of ad sales for major accounts in the U.S., who hinted at the possible reorganization. This initiative is largely driven by the company’s interest in exploiting AI’s potential to streamline operations, evident in the recent introduction of AI-powered ads.

The U.S. tech sector witnessed a volatile year with 260,509 job losses tracked by Layoffs.fyi, nearly 100,000 more than in 2022. Influential firms like Amazon, Meta, and Microsoft were among those reducing staff. Interest rate hikes and recession fears added to the industry’s instability. However, a significant bright spot was a 1,000% year-over-year increase in artificial intelligence-related job listings on Upwork.

In the fintech sector, One 97 Communications, the parent company of Paytm, initiated one of the largest layoffs in an Indian tech firm, affecting more than 1,000 employees. A move aimed at operations streamlining and cost minimization, this decision majorly impacted Paytm’s lending arm, with the company planning further cost reductions.

The cybersecurity industry faced significant layoffs in 2023 due to economic uncertainties, affecting over 110 companies. Britain-based security company Sophos started the trend early in the year by reducing its global workforce by 10%. This was followed by cuts at Bishop Fox and NCC Group, while Rapid7 announced an 18% workforce reduction and plans to permanently shut certain offices. Notably, the bug bounty platform, HackerOne, attributed its workforce cuts of up to 12% to the challenging macroeconomic climate.

Malwarebytes dismissed 100 employees as part of a corporate restructuring that split the company in two, occurring shortly after several high-level executives were let go. In a drastic turn of events, cybersecurity startup IronNet laid off its entire staff and ceased operations, preparing to declare Chapter 7 bankruptcy. Thus, despite the increasing threat of cyberattacks, economic pressures influenced substantial workforce reductions within the cybersecurity sector.

The banking industry also had its share of upheaval, as over 60,000 job roles were pared down in 2023. This significant downsizing was reminiscent of the cuts during the financial crisis and was mostly prompted by declining fees. Most notably, “UBS and Credit Suisse’s merger resulted in 13,000 job losses, with forecasts for more.”