ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / ECONOMY & WORK

How AI Integration and Changing Market Conditions are Affecting Layoffs Across Sectors

Navigating the complexities of workforce adjustments requires a delicate balance between operational efficiency and employee welfare.
PUBLISHED FEB 7, 2024
Cover Image Source: A person delivering goods | Getty Images
Cover Image Source: A person delivering goods | Getty Images

The onset of 2024 has witnessed major corporations within the technology and retail sectors undertaking deliberate and strategic workforce modifications. These pivotal decisions, shaped by various factors, including significant investments in artificial intelligence (AI) and the overarching shifts within the market, epitomize the relentless pursuit of agility and competitiveness among these enterprises.

Companies Embrace Trends for Employee Happiness. Pexels | By fauxels
Image Source: Pexels | Photo by fauxels

In mid-January, Alphabet-owned Google implemented substantial layoffs affecting hardware, voice assistance, and engineering teams. Sundar Pichai, the CEO, warned of potential job cuts, framing them as necessary steps to navigate the field of artificial intelligence.

Microsoft, another tech giant, also took steps to streamline its operations. An internal memo revealed the elimination of 1,900 jobs within its gaming division, representing around 8% of the gaming workforce. This move aligns with the company's strategic realignment in response to changing market dynamics.

Amazon | Getty Images
Image Source: Amazon logo | Getty Images

Furthermore, Riot Games, the developer of the popular video game "League of Legends," cut down 530 jobs at the start of this year, emphasizing the necessity of this decision to ensure a sustainable future. The company made it clear that these measures were not solely to appease shareholders but were critical for its long-term viability.

On the other hand, TikTok, owned by ByteDance, underwent routine reorganization, resulting in the layoff of 60 advertising and sales workers. The eliminated roles include workers in Los Angeles, New York, Austin, and abroad. The company, however, clarified that these actions were part of an internal plan and not in response to economic pressures.

ByteDance | Getty Images
Image Source: ByteDance | Getty Images

Making headlines, Salesforce, a major player in cloud computing, also announced a reduction of 10% of its workforce, affecting 7,350 employees. CEO Marc Benioff attributed this decision to the challenging business environment and customers' measured approach to purchasing decisions.

Ebay | Getty Images
Image Source: eBay | Getty Images

In the retail sector, eBay, a prominent e-commerce platform, declared its intention to cut 1,000 jobs, equivalent to around 9% of its full-time workforce. This strategic move aimed to align the company's size with its growth trajectory amid a slowing economy.

Moreover, amid shifts in audio and video consumption patterns, Amazon, with its vast ecosystem, witnessed layoffs in several subsidiaries. Audible, the audiobook and podcast service, trimmed its workforce by 5%. Broader cuts in other divisions, including Prime Video were also seen.

Outdoor apparel and equipment retailer REI was not far behind, laying off 357 workers, primarily at its headquarters and distribution center. This decision followed four consecutive quarters of declines, emphasizing the need for operational adjustments.

Image Source: Photo by Scott Olson | Getty Images
Image Source: Photo by Scott Olson | Getty Images

While denim brand Levi Strauss & Co. unveiled plans to reduce its workforce by 10% to 15% in the first quarter of the year, the company aims to generate net cost savings of $100 million in the current fiscal year through various cost-cutting measures.

Joining the trend, the iconic department store Macy's removed approximately 3.5% of its employees, totaling to 2,350 workers. The move was part of the company's new strategy to meet the evolving needs of consumers and adapt to a changing marketplace, particularly the growing preference for online shopping.

Pexels | Photo by Andrea Piacquadio
Image Source: Pexels | Photo by Andrea Piacquadio

While layoffs may appear as a short-term fix to streamline operations and reduce costs, they also reflect the broader strategies of companies to adapt to evolving market conditions, stay competitive, and position themselves for future growth.

MORE ON MARKET REALIST
The contestant had no expectations at all coming into the show even on Christmas.
16 hours ago
Vanna White and Ryan Seacrest introduced the 'bragging rights' edition for die-hard viewers.
21 hours ago
Harrison didn't think much of the helicopter at first since it was badly mangled.
1 day ago
The shark wanted to work with entrepreneurs who would never take no for an answer in business.
1 day ago
The object in question was a letter written from the battlefield by legendary poet Walt Whitman.
1 day ago
Turns out that the expert had an original wanted poster for Booth, and Rick was interested in it.
1 day ago
Vanna White seemed worried when she learned what the former host had done.
2 days ago
Chumlee went out to handle the whole deal by himself and committed another blunder.
2 days ago
The movie in question is considered legendary and has the iconic Harrison Ford as the lead.
2 days ago
Their product would make life a lot easier for a lot of fitness enthusiasts, and the sharks saw that.
3 days ago
The painting's value had increased exponentially over the past century when the guest's parents got it.
3 days ago
The founder of Lumio had a decision to make when every investor wanted a piece of his company.
3 days ago
The player made a complicated-looking puzzle look like a walk in the park.
3 days ago
Even the expert had never seen such an iconic sporting trophy in front of him before.
3 days ago
Another contestant followed with a very absurd comparison that was not on the board as well.
4 days ago
He eventually made it as a contestant on "Wheel of Fortune" but his story was still hilarious.
4 days ago
Posters don't usually sound like items worth thousands of dollars, but in this case, things were different.
4 days ago
It has been a long time since anyone has won the Bonus Round and fans are not happy about it.
4 days ago
Memorabilia of the NBA legend has been valued at millions by auction houses.
5 days ago
She also opens up about other experiences with contestants on the show over the years.
5 days ago