Microsoft, Google lay off over 1,400 employees in one week?

The tech industry has been hit with another wave of widespread layoffs as June 2024 begins, with Microsoft and Google announcing job cuts impacting over 1,400 employees in the first week alone.

Despite widespread layoffs throughout 2023, this trend has persisted into 2024, with substantial job losses in both April and May.

In the second quarter of 2024, April saw 21,473 layoffs and May recorded 9,742. The situation appears to be worsening as June progresses.

Microsoft's 1,000 Job Cuts


Microsoft announced a new round of layoffs on Monday, affecting approximately 1,000 employees. The cuts primarily impact departments associated with the HoloLens 2 and the Azure Moonshots project. The Mixed Reality wing, critical to HoloLens 2 development, and the Azure for Operators and Mission Engineering departments have been hit hardest.

These layoffs are part of a broader restructuring within Microsoft's Mixed Reality division. This follows a significant layoff over a year ago when the company cut more than 10,000 jobs. At that time, CEO Satya Nadella emphasized a shift in the company's hardware portfolio, which now seems to extend into their advanced technology and cloud services divisions.

The Azure for Operators and Mission Engineering departments, both established in 2021, are experiencing significant changes.

Google’s Cloud Unit Layoffs


Following Microsoft's lead, Google has initiated layoffs targeting several teams within its rapidly growing Cloud unit. These cuts affect hundreds of employees across various departments, including sales, consulting, 'go-to-market' strategy, operations, and engineering.

This downsising aligns with Google's increased focus on artificial intelligence, reflecting a strategic pivot towards this burgeoning field.

Despite being one of Google's fastest-growing sectors, the Cloud unit has seen workforce reductions, indicating a possible realignment of resources towards more AI-focused projects. According to CNBC, employees were notified last week about the layoffs, which have now taken effect.

A Broader Trend in Tech Industry


The layoffs at Microsoft and Google are part of a broader trend affecting the tech industry. In the first six days of June, seven tech companies announced job cuts, collectively impacting 1,410 employees. It remains to be seen whether this trend will continue or if companies will stabilize their workforce numbers.

In May 2024, the tech industry saw a notable decrease in layoffs compared to previous months, with 39 companies cutting a total of 9,742 jobs, down from April's 21,473 layoffs across 50 companies. These layoffs spanned the industry, including Google's termination of around 200 engineering positions in Sunnyvale, California, as part of a broader downsizing effort that began last year.

Other major cuts included Indeed laying off 1,000 employees, representing nearly 8% of its workforce, primarily affecting research and development units in the US. Additionally, Toshiba announced 4,000 job cuts as part of its restructuring, TikTok fired 1,000 employees globally from its operations and marketing teams, and Walmart initiated job cuts and staff relocations, impacting its corporate workforce.

Microsoft's gaming division also experienced significant layoffs, closing multiple developers such as Arkane Austin, Tango Gameworks, and Alpha Dog Studios. Tesla trimmed its workforce by over 6,700 employees across various departments, including software, service, and engineering, with layoffs occurring in multiple locations like Texas and California.

These cuts reflect ongoing restructuring and cost-cutting measures across the tech industry as companies adapt to evolving market conditions and regulatory environments.

Looking Ahead


As the first week of June concludes, the tech industry's struggle with workforce reductions shows no signs of abating. The layoffs at Microsoft and Google highlight the ongoing challenges faced by tech giants as they navigate strategic shifts and economic pressures. The coming weeks will be crucial in determining whether these trends will stabilise or continue to impact thousands of employees within the tech sector.

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