Tech companies axed 5,000 Mass. workers in 2024
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The vast majority of global tech layoffs last year happened in U.S. hubs, including Silicon Valley and Boston, per a new report.
The big picture: The layoffs illustrate how the tech industry is downsizing despite growing profits, according to a report by the international payments company RationalFX.
Zoom in: There's no question U.S. companies are restructuring after over-hiring during the pandemic, the report says.
- High inflation, followed by recession fears, and an increased interest in artificial intelligence are also factors.
- "There was this whole culture shift from one of risk-taking and growth and experimentation to one of intensely conservative, cautious decision-making," Julia Pollak, chief economist at online jobs marketplace ZipRecruiter, told USA Today after more layoffs were announced this month.
By the numbers: More than 280,000 tech workers lost their jobs in 2024, with more than half of those layoffs (157,950) hitting U.S. companies.
- The largest layoffs were at Dell, Amazon and Microsoft — all which have offices in Massachusetts — as well as Intel, Samsung and Tesla.
Another 26,000 tech workers were laid off in January alone.
- That includes the 730 employees let go at Boston-based Wayfair.
Nearly 5,000 tech workers lost their jobs last year in Massachusetts, where the tech sector made up 8% of the state's workforce (with most of them in Greater Boston).
- More than 3,000 tech workers in Connecticut were laid off.
The largest tech layoffs affected other states with tech hubs.
- California: 63,791
- Texas: 36,681
- Washington: 23,761
- New York: 6,251
Methodology: The report relied on layoff notices under the Worker Adjustment and Retraining Notification (WARN) Act, the IT job portal TrueUp.io and news sources like TechCrunch between Jan. 1 and Dec. 31.
What's next: Expect more layoffs as companies continue to downsize, implement AI and open new jobs that make current jobs redundant, RationalFX says.