Over 30,000 People Fired in Jan 2024; These Firms Conducted Mass Layoffs

Layoffs plagued the global tech industry last year, and 2024 has not seen an improvement so far. As per reports, more than 2,40,000 jobs were lost in tech firms in 2023. The total count included mass layoffs by Google, Amazon, Microsoft, Meta, Nokia, Accenture, and others. India has also suffered its brunt with tech firms such as Paytm, Sharechat, Dunzo, and Byju conducting large-scale job cuts. Several experts highlighted surplus hiring during the pandemic, high inflation, and poor consumer demand as the reason for these firings. But one month into 2024, layoffs are continuing with the same unbridled fervour.

According to data compiled by tech layoff tracker Layoffs.fyi, a total of 2,62,595 employees were sacked in 2023 by 1189 companies. This was the worst year in terms of job cuts in recent history and witnessed an increase of more than 50 percent compared to 2022 (1,64,969 layoffs by 1064 tech companies) when the global layoff spree first started. 2024 has also started in a similar fashion, with 30,375 employees being handed the pink slip by 115 tech firms.

Name Total employees fired Timeline
UPS 12,000 January 2024
SAP 8,000 January 2024
PayPal 2,500 January 2024
Google 1,000 (second layoff undisclosed) December 2023 – January 2024
YouTube 100 January 2024
Microsoft 1,900 January 2024
Amazon (undisclosed) January 2024
Twitch 500 January 2024
Discord 170 January 2024
TikTok 60 January 2024
Unity 1,800 January 2024
Wayfair 1,650 January 2024
Pixar (undisclosed) January 2024
Salesforce 7,000 January 2024
eBay 1,000 January 2024
Vroom 800 January 2024
Riot Games 530 January 2024
Audible (undisclosed) January 2024
Block 1,000 January 2024
Okta 400 January 2024
Swiggy 400 January 2024
Flipkart 1,000 2024
Wipro (undisclosed) 2024

Notably, the biggest announcement came from logistics giant United Parcel Service (UPS), which revealed in its fourth-quarter earnings report that it was letting go of 12,000 staffers to align resources in 2024. CEO Carol Tomé said the move will save the company $1 billion in costs. The German software giant SAP also announced a massive restructuring exercise affecting a total of 8,000 employees, as per a Reuters report. The firm has said that it will push towards gen AI capabilities and automation, and the employees will either be trained with AI skills or let go through voluntary redundancy programs. Alongside, PayPal, the online payments company, is reported to hand the pink slip to 9 percent of its workforce, or 2,500 employees, to reduce headcount.

After conducting various smaller job cuts, Google has already announced two separate layoffs in January 2024. The first affected more than 1,000 employees across its Pixel, Fitbit, Nest, and Google Assistant teams, as per the company’s statement, and the latter is said to affect a few hundred people in its sales and advertising unit, Business Insider reported. Separately, YouTube also announced laying off 100 employees in a restructuring exercise, initially reported by Tubefilter.

After multiple job cuts in 2023, Microsoft has continued the trend and handed the pink slip to 1,900 employees at Activision Blizzard and Xbox in January, which is roughly 8 percent workforce of the Microsoft Gaming division, as per a report by The Verge. Another tech conglomerate to join the tech giants is Amazon, which has laid off “several hundred” employees in its Prime Video and MGM Studios division, citing shifting of focus as the reason, reported The Information.

Social media platforms were also not untouched by the trend. In 2024, Twitch revealed in a post that it had let go of 500 employees in the company due to the size of the organisation being unsustainable. Discord joined the race by sacking 170 people across various departments, a massive 17 percent of its workforce. CEO Jason Citron cited the reason as overexpanding the workforce in an internal memo obtained by The Verge. Finally, NPR reported that TikTok had also fired 60 employees, mostly from sales and marketing, in January 2024.

Apart from these, several other tech firms also made the headlines for trimming their workforce. Unity, the video game engine developer, revealed in an SEC filing that it was laying off around 1,800 roles to improve its financial performance. Wayfair, the online furniture retailer, was reported to fire 16 percent of its workforce, 1,650 employees, due to going “overboard” with corporate hiring during the pandemic. TechCrunch reported that Disney-owned Pixar is preparing for a round of layoffs that could impact as much as 20 percent of its 1,300 large workforce. Another shocking report came from software giant Salesforce, which is laying off 7,00 employees, as per the Wall Street Journal.

Further, E-commerce platform eBay revealed its plans to sack 1,000 employees, citing the ongoing economic condition. Shutting down its e-commerce used car marketplace on January 22, Vroom laid off 800 people, a whopping 90 percent of its workforce, as per a regulatory filing. Publisher of popular game titles such as League of Legends and Valorant, Riot Games, in a post, revealed that it had handed the pink slip to 530 employees, 11 percent of its workforce, to sharpen its focus on high-impact projects. Amazon-owned audiobook firm Audible also laid off 5 percent of its staff, as per a leaked email obtained by Business Insider.

Block, the Jack Dorsey co-founded fintech firm that owns platforms like Square and Cash App, revealed in a memo obtained by Business Insider that it would be laying off 1,000 employees or 10 percent of its workforce due to growth of the organisation outpacing that of its revenue. Okta, a San Francisco-based identity and access management firm, is reported to fire 400 employees due to high costs.

While the global tech companies were dealing with this crisis, the situation closer to home was not ideal either. Various Indian tech companies also conducted layoffs. Ahead of its planned IPO move, food delivery giant Swiggy was reported to fire 400 employees or around 6 percent of its total workforce, calling it a corporate alignment process. Walmart-owned Flipkart can let go of as many as 1,000 employees in an annual restructuring exercise, as per a report.

And on January 31, just two days ago, Wipro joined the list as it is in the process of sacking “hundreds of mid-level roles onsite” to improve its margins, a report by the Economic Times stated. It is not expected to be the last tech firm this year to lay off employees, and with 11 more months to go, the people impacted by the relentless workforce resizing can reach a scary number.

The common thread in all these layoffs are corporate buzzwords such as “restructuring”, “improving efficiency”, “focus on sustainability”, and “surplus hiring.” But the real picture is clear to see. Most tech firms operate online and immensely benefitted during the lockdowns that occurred during the COVID-19 pandemic. As the revenue skyrocketed, so did the expansion plans and a high number of people were hired. However, now that the pandemic is gone, life is returning to normal, and people are spending time outdoors and in offline institutions. This is not good news for the online-first companies who are losing their business and user ‘time spent’ on platforms to retailers and the real world.

Another big factor that played a role in this was the emergence of artificial intelligence (AI). With numerous AI products and tools to automate tasks within organisations popping up, companies now have another way to reduce expenditure and become more efficient. Notably, Paytm CEO said while announcing a job cut that affected 1,000 employees, “We will be able to save 10-15% in employee costs as Artificial Intelligence (AI) has delivered more than we expected it to.”

The impact of “pandemic hiring” is bound to stop at some point, as the majority of the large tech firms have conducted large-scale layoffs since 2022 and are likely to have brought the workforce under control by now. Startups and MNCs also joined the race in 2023, but it can go on for some more time. The one thing which is not going anywhere is the emergence of AI. The launches in 2023 were mostly new products based on a technology that was not fully explored. AI tools are expected to become more polished and enterprise-ready in the next few years and enter a wider range of industries. Google, for example, is already testing AI models for music generation (MusicLM), image generation (Vertex AI), and text-to-video generation with realistic motion (Lumiere).

According to a 2020 report by the World Economic Forum, workforce automation by technology can display as many as 85 million (8.5 crores) job roles by 2025. While the number seems quite unrealistic in 2024, even if just one percent of this comes true in the next five years, 8.5 million (85 lakhs) people will lose employment. To highlight how massive this will be, the entire layoff spree between 2022 and now only amounts to a little less than half a million (4,57,939).


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ChatGPT Fever Spreads to US Workplace as Firms Raise Concerns Over Leaks

Many workers across the US are turning to ChatGPT to help with basic tasks, a Reuters/Ipsos poll found, despite fears that have led employers such as Microsoft and Google to curb its use. Companies worldwide are considering how to best make use of ChatGPT, a chatbot program that uses generative AI to hold conversations with users and answer myriad prompts. Security firms and companies have raised concerns, however, that it could result in intellectual property and strategy leaks.

Anecdotal examples of people using ChatGPT to help with their day-to-day work including drafting emails, summarising documents, and doing preliminary research.

Some 28 percent of respondents to the online poll on artificial intelligence (AI) between July 11 and 17 said they regularly use ChatGPT at work, while only 22 percent said their employers explicitly allowed such external tools.

The Reuters/Ipsos poll of 2,625 adults across the United States had a credibility interval, a measure of precision, of about 2 percentage points.

Some 10 percent of those polled said their bosses explicitly banned external AI tools, while about 25 percent did not know if their company permitted the use of the technology.

ChatGPT became the fastest-growing app in history after its launch in November. It has created both excitement and alarm, bringing its developer OpenAI into conflict with regulators, particularly in Europe, where the company’s mass data-collecting has drawn criticism from privacy watchdogs.

Human reviewers from other companies may read any of the generated chats, and researchers found that similar artificial intelligence AI could reproduce data it absorbed during training, creating a potential risk for proprietary information.

“People do not understand how the data is used when they use generative AI services,” said Ben King, VP of customer trust at corporate security firm Okta.

“For businesses, this is critical, because users don’t have a contract with many AIs – because they are a free service – so corporates won’t have to run the risk through their usual assessment process,” King said.

OpenAI declined to comment when asked about the implications of individual employees using ChatGPT but highlighted a recent company blog post assuring corporate partners that their data would not be used to train the chatbot further unless they gave explicit permission.

When people use Google’s Bard it collects data such as text, location, and other usage information. The company allows users to delete past activity from their accounts and request that content fed into the AI be removed. Alphabet-owned Google declined to comment when asked for further detail.

Microsoft did not immediately respond to a request for comment.

‘HARMLESS TASKS’

A US-based employee of Tinder said workers at the dating app used ChatGPT for “harmless tasks” like writing emails even though the company does not officially allow it.

“It’s regular emails. Very non-consequential, like making funny calendar invites for team events, farewell emails when someone is leaving … We also use it for general research,” said the employee, who declined to be named because they were not authorized to speak with reporters.

The employee said Tinder has a “no ChatGPT rule” but that employees still use it in a “generic way that doesn’t reveal anything about us being at Tinder”.

Reuters was not able independently confirm how employees at Tinder were using ChatGPT. Tinder said it provided “regular guidance to employees on best security and data practices”.

In May, Samsung Electronics banned staff globally from using ChatGPT and similar AI tools after discovering an employee had uploaded sensitive code to the platform.

“We are reviewing measures to create a secure environment for generative AI usage that enhances employees’ productivity and efficiency,” Samsung said in a statement on August 3.

“However, until these measures are ready, we are temporarily restricting the use of generative AI through company devices.”

Reuters reported in June that Alphabet had cautioned employees about how they use chatbots including Google’s Bard, at the same time as it markets the program globally.

Google said although Bard can make undesired code suggestions, it helps programmers. It also said it aimed to be transparent about the limitations of its technology.

BLANKET BANS

Some companies told Reuters they are embracing ChatGPT and similar platforms while keeping security in mind.

“We’ve started testing and learning about how AI can enhance operational effectiveness,” said a Coca-Cola spokesperson in Atlanta, Georgia, adding that data stays within its firewall.

“Internally, we recently launched our enterprise version of Coca-Cola ChatGPT for productivity,” the spokesperson said, adding that Coca-Cola plans to use AI to improve the effectiveness and productivity of its teams.

Tate & Lyle Chief Financial Officer Dawn Allen, meanwhile, told Reuters that the global ingredients maker was trialing ChatGPT, having “found a way to use it in a safe way”.

“We’ve got different teams deciding how they want to use it through a series of experiments. Should we use it in investor relations? Should we use it in knowledge management? How can we use it to carry out tasks more efficiently?”

Some employees say they cannot access the platform on their company computers at all.

“It’s completely banned on the office network like it doesn’t work,” said a Procter & Gamble employee, who wished to remain anonymous because they were not authorized to speak to the press.

P&G declined to comment. Reuters was not able independently to confirm whether employees at P&G were unable to use ChatGPT.

Paul Lewis, chief information security officer at cyber security firm Nominet, said firms were right to be wary.

“Everybody gets the benefit of that increased capability, but the information isn’t completely secure and it can be engineered out,” he said, citing “malicious prompts” that can be used to get AI chatbots to disclose information.

“A blanket ban isn’t warranted yet, but we need to tread carefully,” Lewis said. 

© Thomson Reuters 2023  


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Exclusive: Bill Gates On Advising OpenAI, Microsoft And Why AI Is ‘The Hottest Topic Of 2023’

The Microsoft cofounder talked to Forbes about his work with AI unicorn OpenAI and back on Microsoft’s campus, AI’s potential impact on jobs and in medicine, and much more.


In 2020, Bill Gates left the board of directors of Microsoft, the tech giant he cofounded in 1975. But he still spends about 10% of his time at its Redmond, Washington headquarters, meeting with product teams, he says. A big topic of discussion for those sessions: artificial intelligence, and the ways AI can change how we work — and how we use Microsoft software products to do it.

In the summer of 2022, Gates met with OpenAI cofounder and president Greg Brockman to review some of the generative AI products coming out of the startup unicorn, which recently announced a “multiyear, multibillion” dollar deepened partnership with Microsoft.

You can read more about OpenAI and the race to bring AI to work — including comments from Brockman, CEO Sam Altman and many other players — in our print feature here. Gates’ thoughts on AI, shared exclusively with Forbes, are below.

This interview has been edited for clarity and consistency


Alex Konrad: It looks like 2018 was the earliest I saw you talking with excitement about what OpenAI was doing. Is that right, or where does your interest in the company begin?

Bill Gates: [My] interest in AI goes back to my very earliest days of learning about software. The idea of computers seeing, hearing and writing is the longterm quest of the entire industry. It’s always been super interesting to me. And so as these machine learning techniques started to work extremely well, particularly things for speech and image recognition I’ve been fascinated by how many more inventions we would need before [AI] is really intelligent, in the sense of passing tests and being able to write fluently.

I know Sam Altman well. And I got to know Greg [Brockman] through OpenAI and some of the other people there, like Ilya [Sutskever, Brockman’s cofounder and chief scientist]. And I was saying to them, “Hey, you know, I think it doesn’t reach an upper bound unless we more explicitly have a knowledge representation, and explicit forms of symbolic logic.” There have been a lot of people raising those questions, not just me. But they were able to convince me that there was significant emergent behavior as you scaled up these large language models, and they did some really innovative stuff with reinforcement learning on top of it. I’ve stayed in touch with them, and they’ve been great about demoing their stuff. And now over time, they’re doing some collaboration, particularly with the huge back-ends that these skills require, that’s really come through their partnership with Microsoft.

That must be gratifying for you personally, that your legacy is helping their legacy.

Yeah, it’s great for me because I love these types of things. Also, wearing my foundation hat [The Bill & Melinda Gates Foundation, which Gates talked more about in September], the idea that a math tutor that’s available to inner city students, or medical advice that’s available to people in Africa who during their life, generally wouldn’t ever get to see a doctor, that’s pretty fantastic. You know, we don’t have white collar worker capacity available for lots of worthy causes. I have to say, really in the last year, the progress [in AI] has gotten me quite excited.

Few people have seen as many technological changes, or major shifts, as close-up as you have. How would you compare AI to some of these historic moments in technology history?

I’d say, this is right up there. We’ve got the PC without a graphics interface. Then you have the PC with a graphics interface, which are things like Windows and Mac, and which for me really began as I spent time with Charles Simonyi at Xerox PARC. That demo was greatly impactful to me and kind of set an agenda for a lot of what was done in both Microsoft and in the industry thereafter. [Editor’s note: a Silicon Valley research group famous for work on tech from the desktop to GPUs and the Ethernet.]

Then of course, the internet takes that to a whole new level. When I was CEO of Microsoft, I wrote the internet “tidal wave” memo, It’s pretty stunning that what I’m seeing in AI just in the last 12 months is every bit as important as the PC, the PC with GUI [graphical user interface], or the internet. As the four most important milestones in digital technology, this ranks up there.

And I know OpenAI’s work better than others. I’m not saying they’re the only ones. In fact, you know, part of what’s amazing is that there’ll be a lot of entrants into this space. But what OpenAI has done is very, very impressive, and they certainly lead in many aspects of [AI], which people are seeing through the broad availability of ChatGPT.

How do you see this changing how people work or how they do business? Should they be excited about productivity? Should they be at all concerned about job loss? What should people know about what this will mean for how they work?

Most futurists who’ve looked at the coming of AI have said that repetitive blue collar and physical jobs would be the first jobs to be affected by AI. And that’s definitely happening, and people shouldn’t lower their guard to that, but it’s a little more slow than I would have expected. You know, Rodney Brooks [a professor emeritus at MIT and robotics entrepreneur] put out what I would call some overly conservative views of how quickly some of those things would happen. Autonomous driving has particular challenges, but factory robotization will still happen in the next five to 10 years. But what’s surprising is that tasks that involve reading and writing fluency — like summarizing a complex set of documents or writing something in the style of a pre-existing author — the fact that you can do that with these large language models, and reinforce them, that fluency is really quite amazing.

One of the things I challenged Greg [Brockman] with early in the summer: “Hey, can OpenAI’s model]] pass the AP Biology tests?” And I said, “If you show me that, then I will say that it has the ability to represent things in a deeply abstract form, that’s more than just statistical things.” When I was first programming, we did these random sentence generators where we’d have the syntax of typical English sentences, you know, noun, verb, object. Then we’d have a set of nouns, a set of verbs and a set of objects and we would just randomly pick them, and every once in a while, it would spit out something that was funny or semi-cogent. You’d go, “Oh my god.” That’s the ‘monkeys typing on keyboards’ type of thing.

Well, this is a relative of that. Take [the AI’s] ability to take something like an AP test question. When a human reads a biology textbook, what’s left over in your mind? We can’t really describe that at a neurological level. But in the summer, [OpenAI] showed me progress that I really was surprised to see. I thought we’d have to invent more explicit knowledge representation.

We had to train it to do Sudoku, and it would get it wrong and say, “Oh, I mistyped.” Well, of course you mistyped, what does that mean? You don’t have a keyboard, you don’t have fingers! But you’re “mistyping?” Wow.

Satya [Nadella, Microsoft’s CEO] is super nice about getting input from me on technological things. And I spend maybe 10% of my time meeting with Microsoft product groups about their product roadmaps. I enjoy that time, and it also helps me be super up-to-date for the work of the Foundation, which is in health, education and agriculture. And so it was a huge win to give feedback to OpenAI over the summer, too. (Now people are seeing most of what I saw; I’ve seen some things that are somewhat more up-to-date.) If you take this progression, the ability to help you write and to help you read is happening now, and it will just get better. And they’re not hitting a boundary, nor are their competitors.

So, okay, what does that mean in the legal world, or in the processing invoices world, or in the medical world? There’s been an immense amount of playing around with [ChatGPT] to try to drive those applications. Even things as fundamental as search.

[ChatGPT] is truly imperfect. Nobody suggests it doesn’t make mistakes, and it’s not very intuitive. And then, with something like math, it’ll just be completely wrong. Before it was trained, its self-confidence in a wrong answer was also mind blowing. We had to train it to do Sudoku, and it would get it wrong and say, “Oh, I mistyped.” Well, of course you mistyped, what does that mean? You don’t have a keyboard, you don’t have fingers! But you’re “mistyping?” Wow. But that’s what the corpus [of training text] had taught it.

Having spent time with Greg [Brockman] and Sam [Altman], what makes you confident that they are building this AI responsibly, and that people should trust them to be good stewards of this technology? Especially as we move closer to an AGI.

Well, OpenAI was founded with that in mind. They certainly aren’t a purely profit-driven organization, though they do want to have the resources to build big, big, big machines to take this stuff forward. And that will cost tens of billions of dollars, eventually, in hardware and training costs. But the near-term issue with AI is a productivity issue. It will make things more productive and that affects the job market. The long term-issue, which is not yet upon us, is what people worry about: the control issue. What if the humans who are controlling it take it in the wrong direction? If humans lose control, what does that mean? I believe those are valid debates.

These guys care about AI safety. They’d be the first to say that they haven’t solved it. Microsoft also brings a lot of sensibilities about these things as a partner as well. And look, AI is going to be debated. It’ll be the hottest topic of 2023, and that’s appropriate. It will change the job market somewhat. And it’ll make us really wonder, what are the boundaries? [For example] it’s not anywhere close to doing scientific invention. But given what we’re seeing, that’s within the realm of possibility five years from now or 10 years from now.

What is your favorite or most fun thing you’ve seen these tools create so far?

It’s so much fun to play around with these things. When you’re with a group of friends, and you want to write a poem about how much fun something has been. The fact that you can say okay, “write it like Shakespeare” and it does — that creativity has been fun to have. I’m always surprised that even though the reason I have access is for serious purposes, I often turn to [ChatGPT] just for fun things. And after I recite a poem it wrote, I have to admit that I could not have written that.

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