Employee Layoff Statistics By Mass Layoffs, Demographics, Industry, Biggest Tech Layoff and Facts

Introduction

Employee Layoff Statistics: A layoff happens when a company lets go of an employee, either temporarily or permanently, for reasons that are not about their job performance. Companies often do this to save money, especially when there’s less demand for their products or services, like during a recession. Being laid off is different from being fired for doing something wrong or not doing your job well.

As businesses face changing market needs, new technologies, and economic challenges, layoffs have become a growing issue that affects job stability. In total, about 172,012 workers were laid off from 1,220 companies across the US. The tech industry was hit the hardest, with 141,076 layoffs from 468 tech companies alone. This article, “Employee Layoffs Statistics”, will explore the latest trends in layoffs and how they have changed over time, as well as provide additional insights.

Editor’s Choice

• Employee Layoffs Statistics stated that around 1.5 million people lose their jobs every month.
• In the US, more than 172,012 workers were laid off by 1,220 different companies.
• A total of 141,076 employees were let go from 468 tech companies.
• Job cuts in the US dropped by 49% in June 2023.
• Over 224,503 workers in tech companies were laid off in mass layoffs during 2023.
• 21% of businesses are expected to make layoffs.
• Employee layoff statistics stated that around 61% of adults aged 18 to 34 reported feeling stressed and anxious about the possibility of being laid off.
• Women have a 25% lower chance of being laid off compared to men.

You May Also Like To Read

• Cell Phones At Workplace Statistics
• Paid Holiday Statistics
• Job Satisfaction Statistics
• Freelancing Statistics
• Workplace Violence Statistics
• Social Media At Workplace Statistics
• Time Management Statistics
• Wasting Time At Workplace Statistics
• Employee Recognition Statistics
• Part-Time Vs Full-Time Employment Statistics

What Is Layoff?

A layoff, also called downsizing, is when a company temporarily or permanently lets go of one or more employees for business reasons, like managing staff or reducing the size of the company. Originally, “layoff” meant a short-term break from work, but over time, it has come to mean permanently removing a job position. If the layoff is only temporary, the word “temporary” is used to clarify that.

(Source: collegevidya.com)

Employees who are laid off or displaced workers lose their jobs because the company closed, moved, there wasn’t enough work, or their position was eliminated. Downsizing became a common practice in the 1980s and 1990s, and companies started reducing their workforce to save money and increase shareholder value. Research in countries like the US, the UK, and Japan shows that downsizing is often seen as a way for struggling companies to save costs and improve performance.

In many cases, companies use layoffs as a way to cut costs. A study of 391 downsizing announcements from S&P 100 companies between 1990 and 2006 found that when companies announced layoffs, their stock prices went up, especially if they had done layoffs before. This suggests that companies may use layoffs to increase stock prices, which encourages them to keep cutting jobs.

General Employee Layoff Statistics

• Many companies have recently had to lay off employees due to different reasons, like financial struggles or company restructuring:
• Employee Layoff Statistics stated that Netflix, the popular streaming service, has let go of about 150 workers.
• Lido Learning, a learning tech company in Mumbai, reportedly laid off between 150 and 200 workers.
• Cars24, a platform for selling cars, fired more than 600 employees.
• In 2023, tech companies in the US alone laid off nearly 226,000 workers.
• Meesho, an e-commerce startup, let go of 280 employees in January 2023 from its grocery division.
• Coinbase, the largest cryptocurrency exchange, fired about 20 workers.
• Carvana, an online used car dealer, dismissed almost 2,500 employees by the end of November 2023.

(Source: statista.com)

• Robinhood, an online trading platform, laid off 7% of its workforce in June 2023.
• In 2023’s second quarter, Tesla let go of 229 employees from its Autopilot team.
• Twitter fired 10 of its talent acquisition staff in February 2023.
• Shopify, an e-commerce company, fired about 20% of its workers in May 2023 to cut costs.
• Barstool Sports laid off 25% of its employees in August 2023.
• SWVL, a transportation company based in Dubai, plans to cut 32% of its employees, meaning 400 job losses.
• Employee Layoffs Statistics stated that Grinder Company let go of around 46% of its staff in 2023.
• Ford Motor is laying off about 580 workers, including salaried and contract employees.
• Volkswagen plans to let go of about 4,000 workers at its plants in Germany.
• Google cut 6% of its employees in January 2023.
• com, a cryptocurrency platform, fired 150 workers, 25% of its staff, due to financial challenges.
• These job cuts are a result of various companies across industries facing tough times and trying to save costs.

Biggest Tech Layoff globally between 2020- 2024 by company

(Reference: statista.com)

• As of January 2024, Amazon had the most layoffs in the tech industry, with over 27,000 workers let go across five rounds.
• Meta and Google followed with about 21,000 and 12,000 job cuts, respectively.
• Layoffs across all industries started in 2020 due to the COVID-19 pandemic, and tech companies experienced even more job cuts in 2022.
• In just the first three months of 2023, over 167,000 employees were laid off worldwide, which was a record number for one quarter. This total was higher than the entire year of 2022.
• Various industries, including retail, finance, and education, have been affected by these layoffs, but retail tech startups saw the most job cuts.
• By September 2023, around 29,000 layoffs had been announced in retail tech alone.
• Most of these layoffs occurred in the United States, where large tech companies like Amazon, Meta, and Google are located.
• Employee layoff statistics stated that Tech companies first started laying off workers in 2020 due to the COVID-19 pandemic, which caused lockdowns and limited movement.

(Source: trueup.io)

• While things started to open up in 2021, events like the Russia-Ukraine war, a slowdown in Chinese production, and rising inflation caused major problems for the tech industry.
• These challenges, including higher costs for materials and labor and lower profit margins, are still affecting tech companies today.
• In response, many tech firms are changing their strategies. For example, in the US, companies are focusing on keeping their customers, automating software, and cutting costs to survive the ongoing financial pressures.

You May Also Like To Read

• Meeting Statistics
• Video Conferencing Statistics
• Performance Management Statistics
• Remote Work Statistics
• Employee Theft Statistics
• Outsourcing Statistics
• employee feedback statistics
• Leadership Statistics
• Communication In the Workplace Statistics
• Job Interview Statistics
• Employee Wellness Statistics
• Coworking Statistics

Mass Layoffs In Current Times

• Alphabet, the parent company of Google, decided to lay off 12,000 workers in January 2023. This is the largest job cut in the company’s history, making up 6% of its total workforce.
• Ericsson, a technology company from Sweden, will let go of 8,500 employees worldwide as part of a plan to save $860 million. This is the biggest layoff for the company in over five years.
• Microsoft CEO Satya Nadella mentioned in a memo that the company will cut 10,000 jobs by the end of March 2023 as part of restructuring efforts.
• Amazon CEO Andy Jassy announced on January 4, 2023, that the company will cut about 18,000 jobs, mainly in the corporate and tech departments.
• Disney CEO Bob Iger revealed on February 8, 2023, that the company plans to lay off 7,000 employees, which is about 3% of its global staff.
• Following is the table that shows the mass layoffs in 2023:

Layoff Demographic Statistics

Layoffs impact different age groups and genders in different ways, and education levels can also affect a person’s chances of being laid off. Here are some key facts about how layoffs affect various groups:

(Reference: 365datascience.com)

• 61% of adults aged 18 to 34 worry about layoffs and feel stressed because of it.
• 41% of adults aged 35 and older also experience anxiety about layoffs.
• Employee Layoffs Statistics stated that around 51% of workers in the 18 to 34 age group feel unprepared for a potential layoff.
• Only 36% of people with a college degree have been laid off.
• 45% of men have been laid off, while only 36% of women have experienced a layoff.
• 12% of men have been laid off more than two times, while just 4% of women report the same.
• Employee Layoffs Statistics stated that around 52% of people with some college education have been laid off.
• 30% of employees over 55 years old feel unprepared for a layoff.
• Overall, 46% of employees feel unprepared for being laid off.

Companies with Layoffs in 2024

(Reference: thehindu.com)

(Reference: thehindu.com)

Tech Layoffs by Industry Statistics

(Reference: thehindu.com)

Conclusion

The Employee Layoff Statistics for 2024 show that many companies around the world are facing tough times and have had to announce job cuts and hiring freezes. Even though the economy is slowly getting better, many businesses are still struggling.

As a result, layoffs will likely keep happening at a high rate. Job seekers need to be aware of these challenges and get ready for a tough job market. However, it’s important to stay optimistic about the future.