Paradise is Crumbling

Bijin Jose

[As many as 1,04,410 employees have been laid off by 360 companies in the IT sector in 2024 so far.]

The spate of tech layoffs continues to impact thousands of tech professionals worldwide. It’s only the fifth day of July, and thousands of working professionals have already been impacted by the ongoing wave of job cuts. The latest to join the bandwagon is the Redmond tech giant Microsoft. The company has reportedly laid off hundreds of employees in a fresh round of job cuts, impacting multiple teams and geographies.

The tech giant has not officially provided any details, however, several affected employees took to their LinkedIn accounts to express their displeasure. As reported by Geek Wire, staff in the roles of product and program management have been affected the most. The same report also quoted a Microsoft spokesperson saying that organisational and workforce adjustments are necessary and a regular part of managing the business. “We will continue to prioritise and invest in strategic growth areas for our future and in support of our customers and partners.”

Sonja Delafosse, who has been working with Microsoft for nine years, was among the many laid off. Delafosse, who was serving as the director overseeing Microsoft’s AI professional development strategy, announced on LinkedIn that she was looking for a new role. “Hi everyone – I was impacted by the latest round of layoffs at Microsoft and am starting to look for a new role and would appreciate your support. Thank you in advance for any connections, advice, or opportunities you can offer,” wrote Delafosse.

It needs to be noted that Microsoft’s fiscal year ended on June 30, and the company is known to restructure its business at the start of the new fiscal year. In June, it was reported that Microsoft slashed around 1,000 jobs. The layoffs impacted the mixed reality department working on HoloLens 2 along with Azure for operators and Mission Engineering.

Even as Microsoft carries out yet another round of layoffs, another tech company has handed over the pink slip to hundreds of employees. On July 3, it was reported that US-based multinational technology company, UKG, reduced its workforce by around 2,000 employees. Reportedly, the CEO Chris Todd, in an email, said that the software company downsized its workforce by up to 14 per cent.

William Madden, who was a product manager at UKG, shared on LinkedIn he was impacted by the layoffs. “Hi everyone – As everyone has seen UKG has gone through another round of layoffs and this time my team and I have been affected. I’m looking for a new role and would really appreciate your support. If you hear of any opportunities that you think are worth looking into for myself or for my team of Product Owners I’m open to chatting, send me a message or comment below!” he wrote.

UKG, one of the most prominent software developers, employed as many as 15,882 people as of June 2024.

Kamanie Manderson, who worked at UKG for years, took to his LinkedIn to urge his connections to apprise him about potential job opportunities. “Hi everyone. Today, I was part of a significant layoff at UKG. After a rewarding 10-year journey with Ultimate Software, which later merged with UKG, I am now actively seeking new opportunities. My time at Ultimate Software’s IT Help Desk and UKG’s Enterprise Endpoint Management allowed me to grow professionally and mentor many along the way,” he wrote.

Canadian business software company Open Text Corp, on July 3, announced that it was cutting as many as 1,200 jobs as part of a business optimisation plan which aims to save around $200 million a year. Reportedly, the layoffs will cost the company around C$60 million, which will be recognised in the first quarter of fiscal 2025. The company is, however, hoping to reduce its expenses by C$ 150 million in 2025. According to an SEC filing, the Ontario-based company also has plans to reinvest C$50 million annually in 800 new roles in sales and engineering to support its growth and innovation plans.

The ongoing spate of layoffs has also impacted Indian companies. On July 2, it was reported that edtech company Unacademy was laying off about 250 employees. The company, which is valued at $3.4 billion in its funding in 2021, has been slashing jobs since schools reopened across India following pandemic-induced lockdowns. Reportedly, 100 people in the marketing, business, and product departments, and 150 in sales, were impacted by the latest round of layoffs. Since 2022, the company has laid off around 2,000 of its employees.

The spokesperson from Unacademy attributed the layoffs to the company’s restructuring exercise to streamline operations and enhance business efficiency. “This was necessary keeping in mind the company’s goals and vision for the year, as we focus all our efforts on sustainable growth and profitability. Consequently, some roles have been impacted. While this transition won’t be easy, we will be supporting all impacted individuals during this transition,” they said.

According to layoffs.fyi, a site that tracks tech layoffs, 1,04,410 employees have been laid off by 360 companies in 2024 so far. In May while 49 companies laid off 10,989 employees, June saw 46 companies sacking 10,083 of their staff. Moreover, in June and July, giants like Microsoft and Google announced major job cuts. The reasons cited include economic uncertainties that push companies to focus more on efficiency and cost-cutting, restructuring after acquisitions and project shutdowns, etc..

[Bijin Jose, an Assistant Editor at Indian Express Online. Source: The Indian Express]

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Vol 57, No. 5, Jul 28 - Aug 3, 2024