Tech company layoffs in 2024: The latest cuts in Q1

February’s U.S. unemployment rate remained near record lows despite a slight year-over-year increase to 3.9 percent, up from 3.6 percent 12 months ago, according to the U.S. Department of Labor’s Bureau of Labor Statistics.

Meanwhile, the BLS reported, February employment in the information sector actually rose by 2,000 people over January, a positive gain although less than the 6,000-employee gain in the sector in January over December.

For the U.S. economy as a whole, employment across the board, and in the information sector in particular, seems to be relatively stable.

Tell that to the tech employees who have been receiving pink slips in the first quarter of 2024. So far this year, there have been 49,978 employees let go and 204 tech companies with layoffs, according to Layoffs.fyi, a site that tracks layoffs.

While being employed in the tech sector is in general a good place to be, there are still the occasional bumps in the road as a company looks to cut spending, restructure, or change its strategic focus based on the latest economic and business conditions.

It can be especially difficult when an organisation closes its doors as happened at least twice during this quarter.

This happened in February when application developer CodeSee’s CEO announced it is closing, and early in March when Oracle co-founder Larry Ellison-backed cancer-focused software startup Project Ronin said it would shut down.

The Project Ronin closure impacted up to 150 employees, according to Bloomberg, which broke the news.

For impacted employees, any good news about the sector as a whole fades when it’s their own job on the line.

At IT distributor Ingram Micro, which late this quarter quietly laid off an unspecified number of employees, one of those impacted told CRN US anonymously that the recent layoff rounds seemed to have “no rhyme or reason” in terms of who was let go and who was retained.

“The messaging from leadership is always the same, you’re the CEO of your career, feel free to go elsewhere; they don't even make an attempt to alleviate the low morale or fear of being in the next round of layoffs in a few months or to keep quality staff,” the former employee said.

Read on to see more companies that have announced layoffs so far this year.

And please note that, given CRN US’s focus on the channel and the B2B environment, this report does not include tech layoffs at consumer-focused organisations.

Kyle Alspach, Wade Millward, Mark Haranas, and Gina Narcisi contributed to this article.

Orca Security lays off 60

Israel-based news site Calcalist on January 3 reported that Orca Security, based in Tel Aviv, Israel and Portland, Ore., will lay off about 15 percent of the cloud security unicorn’s employees, or about 60 employees.

“Since Orca Security’s founding, a key guiding principle has been growing responsibly and profitably,” the company said in a statement provided to CRN US.

“Based on the current macroeconomic conditions, we made the difficult decision to say goodbye to a number of our colleagues across the company.”

The cloud security firm plans to “announce updates on our go-forward strategy in the coming weeks,” the statement said.

Last October, top executives at Orca Security disclosed their aspirations for the company to grow into a candidate for going public in the next few years.

Founded in 2019, Orca most recently received a valuation of US$1.8 billion in 2021, in connection with its US$550 million Series C funding round.

Last year, the company unveiled a new channel strategy that includes a commitment to generate 100 percent of its revenue with the help of partners.

Xerox plans to reduce its workforce by 15 percent

As a part of Xerox’s “reinvention” that was unveiled in early January, the company plans to lay off about 15 percent of its workforce this quarter.

Xerox had about 20,700 employees as of June 2033, according to an August regulatory filing, so that would imply the company will lay off about 3,100 people.

Xerox did not specify which departments or geographies would be impacted by the layoffs. However, the company did say that proposed reductions would be subject to formal consultation with local works councils and employee representative bodies where applicable.

Xerox’s headcount has been steadily dropping as printer and copier sales have also decreased. At the end of 2022, the company had approximately 20,500 employees, which was a reduction of approximately 2,800—or about 12 percent --from the year before, according to a regulatory filing.

Cloud Software Group lays off 12 percent

Cloud Software Group, the parent of cloud vendor Citrix, in early January laid off about 12 percent of its worldwide workforce, or about 1,000 employees, as part of a company streamlining, with some of those laid-off employees expected to get hired by the company’s channel partners.

CSG CEO Tom Krause, in a LinkedIn post, wrote, “Cloud Software Group is committed to building a foundation of sustainable value creation for our customers and partners. To those impacted, thank you for your contributions in the first year of Cloud Software Group. These decisions are never taken lightly, but are necessary to build the strongest foundation possible for the future.”

In his post, Krause wrote that “many of those roles, namely in Operations, Security and IT functions, we are working with partners who will rehire many of those individuals to continue providing outsourced services to Cloud Software Group.”

The company expects about half those laid off to be rehired in an outsourced capacity.

This latest round of layoffs came exactly a year after CSG cut 15 percent of its workforce with plans for Citrix to focus on its top 1,000 customers and leave mid-tier and commercial accounts for service and support by solution providers.

Google lays off “hundreds”

Google in mid-January confirmed it is cutting “a few hundred” employee roles in each division inside its Google Assistant software business.

It is part of a restructuring process the company is doing to help boost Google Assistant as it seeks to implement new generative AI technology into its portfolio.

Google late last year said it would use its generative AI chatbot Google Bard to build an new and improved version of Google Assistant.

Google also confirmed moves to lay off hundreds of employees inside its Devices and Services business unit this week, mainly in its augmented reality division, but also in its Pixel, Nest and Fitbit hardware groups.

Later that month, Google unveiled another layoff of “few hundred” employees in its advertising sales group.

Google CEO Sundar Pichai told employees to expect more layoffs in 2024. “We have ambitious goals and will be investing in our big priorities this year,” Pichai said. “The reality is that to create the capacity for this investment, we have to make tough choices.”

Amazon to lay off 500 Twitch employees

Amazon in mid-January unveiled plans to lay off 35 percent of the workforce of Twitch, the company’s livestreaming video business and one of the world’s most popular livestreaming platforms. The cuts total just over 500 employees.

“We have worked hard over the last year to run our business as sustainably as possible,” Twitch CEO Dan Clancy wrote in a blog post to staff this week.

“Unfortunately, we still have work to do to rightsize our company and I regret having to share that we are taking the painful step to reduce our headcount by just over 500 people across Twitch. This will be a very hard day. Our service exists to empower communities to create, together, and every single one of you has played a vital role in fostering our community and furthering that mission.”

Amazon’s Twitch supports 1.8 billion hours of live video content per month and is highly popular in the video gaming industry.

Veeam lays off 300, plans to hire 500

Data protection technology developer Veeam Software in mid-January began the process of a round of layoffs affecting 300 employees in sales, marketing and administrative capacities.

However, the Columbus, Ohio-based company, which has more than 5,000 employees, also unveiled plans to increase its engineering and development payroll by nearly 500 workers this year.

Matthew Bishop, Veeam’s chief operating officer, said in a prepared statement, “2023 was Veeam’s best ever year in terms of market share – now #1 in the global market - growth and profitability. Like any successful company, during annual planning Veeam makes decisions to prioritise investment areas reflecting the evolution of the business and the market. We don’t publicly disclose confidential business plans but we can share we’re ramping up hiring in some areas, transitioning some roles to new teams and retiring other roles. Our primary focus today is providing the best possible support to those Veeam employees impacted by the changes and assisting them to find their next career opportunity.”

Jamf lays off 6 percent of staff

Jamf, a maker of device management and security tools for Apple devices, in late January disclosed via in a filing with the U.S. Securities and Exchange Commission that a round of layoffs will impact 6 percent of its employees as the company pursues “profitable growth.”

Minneapolis-based Jamf did not specify the number of employees that are expected to be let go. The company most recently reported its headcount in late 2022, when the company employed 2,796 people.

However, a spokesperson confirmed that an estimate of 170 people being laid off to be “approximately accurate.”

Jamf, in its SEC filing, said its workforce reduction plan is “intended to reduce operating costs, improve operating margins, and continue advancing the Company’s ongoing commitment to profitable growth.”

Salesforce reported to lay off 700 employees

Salesforce in late January had plans to lay off 700 employees, or about 1 percent of its headcount, according to according to multiple news.

News of the new layoffs followed the San Francisco-based customer relationship management tool developer’s early 2023 move to lay off about 10 percent of its workforce.

Bloomberg and The Wall Street Journal reported on the layoffs. Salesforce still has 1,000 open positions across the company, according to The Wall Street Journal.

The move is possibly part of a routine workforce adjustment instead of a strategic shift. Neither outlet reported on what departments would see cuts at Salesforce.

Proofpoint unveils planned layoff of 280 people

Proofpoint late January executed a round of layoffs that impacted 280 employees. The Sunnyvale, Calif. move, first reported by Israel-based online news site Calcalist, amounted to about 6 percent of Proofpoint’s worldwide staff of 4,500.

Proofpoint confirmed the report in a statement that read, “In order to position Proofpoint for continued and long-term success as a world-class business operating at scale, we have made the difficult decision to reduce our current workforce by about 280 positions globally.”

Proofpoint, a major provider of email security and data protection tools, said in the statement that the layoffs come as part of a “forward-looking company strategy of aligning our investments and hiring to our strategic priorities.”

This strategy includes an effort by the private equity-owned company to utilise a “global talent pool” as well as “streamlining our organisation with fewer management layers,” Proofpoint said.

“By the middle of 2024, we anticipate nearly half of the eliminated positions will be transitioned to our global centers in Ireland and Argentina,” the company said in its statement Wednesday.

“Coupled with continued hiring aligned with our key priorities, we expect to end 2024 with a similar headcount to where we started the year.”

SAP looks for voluntary layoffs

Walldorf, Germany-based SAP in late January unveiled plans to implement a company-wide transformation program that includes a significant workforce reduction.

That restructuring is slated to result in a decrease in the company’s workforce by about 8,000 people, the majority of whom are expected to be covered by voluntary leave programs and internal re-skilling measure.

However, expected hiring to meet new business requirements is expected to increase headcount by year-end.

SAP, in a statement, wrote, “To prepare the company for highly scalable future revenue growth … and to ensure that SAP’s skill set and resources continue to meet future business needs, SAP plans to execute a company-wide restructuring program in 2024. The majority of the approximately 8,000 affected positions is expected to be covered by voluntary leave programs and internal re-skilling measures. Reflecting re-investments into strategic growth areas, SAP expects to exit 2024 at a headcount similar to current levels.”

Okta cuts 400 jobs

San Francisco-based identity and access management technology developer Okta in early February told employees that it eliminated 400 full-time jobs as part of a “restructuring plan,” representing 7 percent of its staff. The layoffs came just a year after the company said it was cutting 300 employees.

Okta, in a filing with the U.S. Securities and Exchange Commission, wrote, “The Company announced to its employees a restructuring plan intended to improve operating efficiencies and strengthen the Company’s commitment to profitable growth.”

Okta Co-founder and CEO Todd McKinnon sent a an email to his staff, a copy of which was also read by CRN US, which described the restructuring as a “difficult decision.”

“In order to grow profitably, we need to run the business with greater efficiency. While we’ve taken steps in the right direction, the reality is that costs are still too high,” McKinnon wrote in the email to employees.

“We need to be mindful of our overall spend so we can continue to invest in the areas, products, and routes to market with the most opportunity,” he told staff. “To capture our massive potential and build an iconic company, we must be thoughtful about where we place our bets. This action is a proactive measure to help set the company up for long-term success.”

Zoom lays off 150

Zoom Video Communications in early February cut about 150 employees, according to a Bloomberg report. A spokesperson for the San Jose, Calif.-base company confirmed the cuts to CRN US.

"We regularly evaluate our teams to ensure alignment with our strategy," the spokesperson said. "As part of this effort, we are rescoping roles to add capabilities and continue to hire in critical areas for the future."

The layoffs are not companywide and Zoom plans to continue to hire for roles in artificial intelligence, sales, product and across operations in 2024, according to reports.

Zoom, which was a staple for millions of global users working remotely at the peak of the COVID-19 pandemic, has been on the decline in popularity as many workers returned to the office and as companies shifted into hybrid models.

DocuSign plans 6 percent workforce cut

San Francisco-based DocuSign in early February unveiled a restructuring plan, part of which includes a workforce reduction of about 6 percent, with the majority of impacted positions in the company's sales and marketing organizations.

The workforce reduction was “designed to strengthen and support the Company's financial and operational efficiency while continuing to invest in product and related initiatives that will provide the foundation to realise its multi-year growth aspirations as an independent public company,” DocuSign said in a statement.

Reuters reported that DocuSign had 7,336 employees as of January 31, 2023.

Pure Storage lays off up to 275 employees

Santa Clara, Calif.-based flash storage pioneer Pure Storage in early February laid off as many as 275 employees, or about 4 percent of its total workforce, according to a report in Blocks And Files.

Layoffs happened in several areas of the company, including its data protection, AI and analytics, database, alliances, and unstructured data groups.

A Pure Storage spokesperson said the layoffs were the result of a recently completed workforce rebalancing initiative to align its employees with company priorities and strategic businesses, Blocks And Files reported.

Cisco plans 5 percent workforce cut

Cisco Systems Chair and CEO Chuck Robbins in mid-February told investors during the company’s fiscal second quarter 2024 financial report that the company would be cutting jobs globally to adjust expenses and investments to reflect the current macro environment, which has resulted in lowered product revenues.

Cisco in its second quarter filings unveiled a companywide layoff that would impact about 5 percent of its workforce, or about 4,250 employees, as it works to realign its organisation to focus on "key priority" areas.

The tech giant expects to recognise about US$800 million in charges associated with the restructuring, which Cisco said was largely related to severance and other one-time termination benefits.

The majority of the costs are expected to occur in the third fiscal quarter and will continue into the first half of the company’s fiscal 2025.

Cisco later in the month said that it would cut about 729 jobs in the San Francisco Bay area by April.

CodeSee closes

San Francisco-based CodeSee, which aimed to help businesses build their applications and provide a map of the app’s services, directories, and file dependencies, closed its doors in late February.

CodeSee Founder and CEO Shanea Leven said in a February LinkedIn post that the company would close its doors and cease operations on February 22.

At the time, Leven said she was hoping to find a new home for the company’s tech and team to prevent the team from going its separate ways. She did not say how many people were impacted.

Leven used her post to explain why the company was closing.

“I can only apologise to everyone for this difficult turn. The company had more than doubled the number of new product logos in 2023 and grew by many thousands of free users. However our sales growth was inconsistent, and we needed to make revenue faster and more consistently. Given the nature of trying to solve code understanding, this meant being able to deeply cover more complex codebases, more IDEs, more tech stacks, and more programming languages which would have taken time that we didn’t have. And Gen AI has made this space even more complex, both as a tool to help and a source of ever more code to understand,” she wrote.

Ingram Micro conducts layoffs, with more to come

Ingram Micro is going through another round of layoffs, including the laying off of some of its middle managers, although the distributor has been holding the full extent of its workforce reductions close to its chest.

CRN US has learned via multiple sources at Ingram Micro that the company has had a few rounds of layoffs, the most recent of which happened last week. It is uncertain how many people were laid off.

However, CRN US has learned via Ingram Micro and industry sources that a number of middle management employees were let go during this round.

One former employee who was recently laid off from Ingram Micro who requested anonymity told CRN US via email that the recent layoff rounds seemed to have “no rhyme or reason” in terms of who was let go and who was retained.

“The messaging from leadership is always the same, you’re the CEO of your career, feel free to go elsewhere; they don't even make an attempt to alleviate the low morale or fear of being in the next round of layoffs in a few months or to keep quality staff,” the former employee said.

Kirk Robinson, executive vice president and president of the company’s North America business, told employees via an email dated Feb. 22 addressed to “Team” that the company made the “difficult decision” to do a workforce reduction.

CRN US received a copy of that email, and the authenticity was confirmed by an Ingram Micro spokesperson.

“You may have heard that today we made the difficult decision to undergo a small reduction in force within our US organisation to align our resources with our current business environment. This decision was not made lightly, and we understand the impact this has on our valued team members.

“We are committed to supporting all affected employees through this transition and are providing comprehensive assistance, including severance packages and outplacement resources.

“Be assured that our commitment to delivering an exceptional customer experience to our channel partners and associates remains unchanged, and we are confident that the steps we are taking will position the company for long-term success,” Robinson wrote.

Ingram Micro declined to discuss the layoffs. However, an Ingram Micro spokesperson told CRN US via email that the distributor will close its advanced logistics facility in O’Fallon, Mo., at the end June, which will result in the elimination of 60 positions.

IBM layoffs due to increased AI use starting

IBM is reportedly laying off employees in its communications and marketing division as the company looks toward AI to replace non-customer-facing roles, according to a report from CNBC.

IBM CEO Arvind Krishna last year unveiled plans to suspend or slow hiring for about 26,000 non-customer-facing back-office roles, or about 10 percent of the company’s total workforce, where AI and automation could do their roles.

Krishna said up to 30 percent of those roles, or about 8,000 employees, could be replaced by AI and automation over the next five years.

When questioned about the layoffs, an IBM spokesperson said that during its fourth-quarter earnings report in January IBM had indicated layoffs could be ahead.

“In 4Q earnings earlier this year, IBM disclosed a workforce rebalancing charge that would represent a very low-single-digit percentage of IBM’s global workforce, and we expect to exit 2024 at roughly the same level of employment as we entered with,” IBM told CRN in a statement.