Layoffs in the U.S. technology industry are accelerating, with 23,670 layoffs announced in January

U.S. technology companies are accelerating layoffs. According to data from the layoff.fyi website, 85 technology companies have announced layoff plans so far in January this year, affecting a total of 23,670 employees. This is the most since March last year, when nearly 38,000 people were laid off in the industry.

Layoffs have accelerated in the past week, with German enterprise software giant SAP announcing 8,000 layoffs and Microsoft's gaming division laying off 1,900 people. E-commerce giant eBay announced 1,000 layoffs, and financial technology startup Brex plans to lay off 20% of its employees, affecting about 220 employees.

Earlier this month, Google confirmed it would lay off hundreds of jobs across the company, and Amazon has also eliminated hundreds of positions at Prime Video, MGM Studios, Twitch and Audible. Game engine giant Unity announced that it will lay off 25% of its employees, while Discord, an instant messaging service provider commonly used by gamers, also plans to lay off 17% of its employees.

Layoffs in the U.S. technology industry peaked in January last year, when 277 companies announced nearly 90,000 layoffs. Most of the downsizing occurred in the first quarter of 2023, and the number of layoffs fell month by month through September, but began to pick up late last year.

One explanation for January's surge in layoffs: As companies budget for the year ahead, they've learned they can do more with less.

At Meta, where 2023 is, in the words of CEO Mark Zuckerberg, "the year of efficiency," the company's stock price rose nearly 200% last year after laying off 20,000 people.

At the same time, with the rise of the artificial intelligence boom, new generative AI technologies threaten to replace more jobs.

The layoffs aren't limited to the tech industry. Troubled Citigroup announced earlier this month it would cut 10% of its workforce. Jeans giant Levi's announced last week that it would lay off at least 10% of its global workforce. Paramount has become the latest media brand to announce layoffs, with CEO Bob Bakish saying on Thursday that the company needs to "streamline operations and reduce expenses."