July 2024 has seen a continuation of layoffs in the technology sector, with notable companies in India and abroad reducing their workforce. Despite a slight decrease in the number of layoffs compared to June, the impact remains significant.
Major Layoffs in July 2024
UKG: A Rough Start to July
The month began with Massachusetts-based software company UKG laying off 14% of its workforce, totaling around 2,200 employees. This decision was part of the company’s strategy to focus on critical growth areas.
Intuit Inc: Significant Reductions
On July 10, California-based financial management software firm Intuit Inc. announced the layoff of 1,800 employees, approximately 10% of its staff, to streamline operations.
Open Text and Redbox: Continued Cuts
Software companies Open Text and Redbox also announced layoffs, cutting 1,200 and 100 jobs, respectively.
Impact on Indian Tech Sector
Unacademy: EdTech Giant’s Restructuring
Indian edtech giant Unacademy laid off around 250 employees, including 100 in marketing, business, and product roles, and 150 in sales, as part of a restructuring exercise.
WayCool: Agritech Firm’s Streamlining
Chennai-based agritech firm WayCool laid off over 200 employees, marking the third round of job cuts in 12 months, due to operational streamlining efforts to prevent losses.
PocketFM: Audio Series Platform’s Downsizing
Bengaluru-based audio series platform PocketFM laid off close to 200 writers from its staff, primarily affecting its US-based audio series operations.
Koo: Microblogging Site Shutdown
Indian microblogging site Koo, an Indian rival to X, shut down after acquisition talks with Dailyhunt fell through, affecting around 200 employees.
Table of Layoffs in July 2024
| Company Name | Number of Employees Laid Off |
|---|---|
| UKG | 2,200 |
| Intuit Inc | 1,800 |
| Open Text | 1,200 |
| Redbox | 100 |
| Unacademy | 250 |
| WayCool | 200+ |
| PocketFM | 200 |
| Koo | 200 |
Reasons Behind the Layoffs
Economic Uncertainty
Prevailing global economic conditions, such as inflation and fears of recession, have led tech companies to reassess their spending and workforce size.
Over-Hiring During the Pandemic
The surge in demand for digital services during the Covid-19 pandemic led many tech firms to expand their workforce. As normalcy resumed, maintaining the increased workforce became unsustainable, resulting in layoffs.
Shifting Business Priorities
Companies are increasingly focusing on Artificial Intelligence and Cloud Computing, leading to job cuts in less critical departments. Cost-cutting measures to pursue profitability and advancements in automation and AI technologies have also contributed to job displacement.
Moving Forward
For those affected by layoffs, upskilling and re-skilling are crucial. It’s important to prioritize mental and physical health, review severance package benefits, start networking, and update resumes and online profiles. Patience and persistence will be key during this challenging phase.
Conclusion
The wave of layoffs in the tech sector continues to impact many professionals, driven by economic factors, pandemic-related over-hiring, and shifting business priorities. Affected individuals must focus on resilience and adaptability as they navigate this challenging period.
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