Tech Layoffs Slow Down: Economic Uncertainty Still Exists

The number of tech layoffs is still declining. In the tech sector, 35 companies laid off up to 3,941 workers in September, and 30 laid off 3,080 workers in October.FYI. We believed that September had the fewest layoffs, but October surprised us by showing that the trend is still downward. Nearly four businesses cut their employees by 300 apiece in October, while four tech organisations cut over 400 jobs each. The tech sector appears to be stabilising after a wave of layoffs earlier this year. There were significantly fewer job layoffs in October 2024 compared to earlier months. This pattern bodes well for the IT industry. Economic uncertainty still exists even though a full-fledged global recession seems unlikely. Rising interest rates and geopolitical unrest are two factors that might affect the global economy and, in turn, the technology sector. The decrease in layoffs, however, raises the possibility that businesses are adapting to the current economic environment and figuring out how to utilise their workers best.

Layoffs in October: Layoffs are at one of their lowest levels since 2023

Over the years, it has been noted that the companies most affected by layoffs have been those in the conventional tech sectors, including social media, software, and hardware, with a small number of fintech and AI companies also affected. The adoption and integration of AI tools and automation by IT organisations have resulted in the possibility of redundancy in specific jobs and departments, mainly when cost-cutting measures are being implemented.

In any case, October is the month with the fewest impacted businesses and workers this year. The pace of job cutbacks has been gradually slowing down in recent months after a tsunami of layoffs swept across the tech sector earlier this year. According to data from layoffs.fyi, 35 IT companies took off about 3,941 workers in September, while 30 companies laid off 3,080 employees in October. According to October's data, layoffs are at one of their lowest levels since 2023, continuing the downward trend set in earlier months. Particularly following the high layoffs in January, February, and April, the October layoff wave is consistent with the overall trend of stabilisation seen throughout the preceding months. Companies from various industries, including consumer, healthcare, finance, and cryptocurrency, saw layoffs in October.

There are still issues in the financial and cryptocurrency sectors

Layoffs in the financial and cryptocurrency industries reflect ongoing difficulties in the face of market volatility. Due to persistent economic challenges, fintech company Karat Financial and digital marketplace bank Lending Club reportedly cut employees. Layoffs occurred in the healthcare industry at IT business Carbon Health and healthcare staffing platforms like Nomad Health.

Major layoffs were being implemented by companies like Intel, IBM, and Cisco, as well as smaller startups

Traditional IT industries like software, hardware, and social media have seen the most job losses this year. However, some fintech and AI positions have also been impacted. This tendency is ascribed to the growing use of automation and artificial intelligence (AI) tools, which have simplified processes and led to job duplication in some areas. Over 136,000 jobs had already been lost in the tech sector as of August, affecting 422 organisations. Major layoffs were being implemented by companies like Intel, IBM, and Cisco, as well as smaller startups.

The stabilisation of the IT industry is encouraging. Employing qualified experts may be necessary as businesses concentrate on innovation, artificial intelligence, and other cutting-edge technology to spur growth. Even if the trend is generally beneficial, some companies may still experience difficulties and must modify their workforces accordingly. It's critical to keep up with the most recent advancements and adjust to shifting conditions as the tech sector changes.

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