Google CEO Sundar Pichai, Microsoft's Satya Nadella, Meta's Mark Zuckerberg reveal reason behind layoffs in tech sector

The layoffs in the tech industry continue this year too. It began in 2023 when major tech giants like Google and Facebook parent Meta fired many employees. These companies along with Microsoft and Amazon, are still cutting jobs in 2024. Recently, Microsoft announced a new round of job cuts. These layoffs are a part of the tech giant's efforts to streamline its workforce. But why do these tech giants continue to fire their employees? 

Facebook

Meta, the parent company of Facebook, Instagram and WhatsApp, is among the first tech giants that announced job cuts. CEO Mark Zuckerberg said in an interview with 'Morning Brew Daily' in February that the company overhired during the pandemic. It later realised the benefits of a leaner workforce, leading to more layoffs.

Google

The company has conducted multiple rounds of layoffs, with the most recent being in its Cloud unit in May. Google CEO Sundar Pichai told Bloomberg in May 2024 that the company is removing some teams completely to 'improve velocity'. He also said the company is reallocating people to its highest priorities.

Microsoft

In a memo last year, Microsoft CEO Satya Nadella said the onset of new technology is forcing the company to take such a stand. “First, as we saw customers accelerate their digital spend during the pandemic, we're now seeing them optimise their digital spend to do more with less. At the same time, the next major wave of computing is being born with advances in AI, as we're turning the world's most advanced models into a new computing platform,” Nadella said.

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