The U. S. unemployment rate is U. S. inflation in February remained near record lows despite a slight year-over-year increase to 3. 9% from 3. 6% 12 months ago, according to the U. S. Department of Labor’s Bureau of Labor Statistics.
At the same time, the BLS reported, employment in the news sector in February increased by 2,000 more people than in January, a positive increase though smaller than the 6,000 increase in workers in the sector in January compared to December.
For the U. S. economy as a whole, employment across the board, and in the news sector in particular, looks stable.
Tell that to tech workers who got pink cards in the first quarter of 2024. So far this year, 49,978 workers have been laid off and 204 tech corporations have been laid off, according to Layoffs. fyi, a site that tracks layoffs.
While being hired in the tech sector is a smart position to work in, there are still occasional bumps in the road when a company looks to cut costs, restructure, or reposition its strategic direction based on the latest economic and business conditions.
This can be especially tricky when an organization closes its doors, as happened at least twice this quarter.
This happened in February, when the CEO of app developer CodeSee announced its closure, and in early March, when Oracle co-founder Larry Ellison subsidized cancer-focused software startup Project Ronin announced its closure.
The shutdown of the Ronin mission affected even employees, according to Bloomberg, which broke the news.
For affected employees, any good news about the industry as a whole vanishes when it’s their own jobs at stake.
At computer distributor Ingram Micro, which at the end of this quarter quietly laid off an unspecified number of employees, one of the other people affected told CRN US on condition of anonymity that the recent waves of layoffs appear to be “without rhyme or reason. “as to who has been fired and who was retained.
“The message from the leaders is the same: you are the CEO of your career, don’t hesitate to move elsewhere; They don’t even make an effort to alleviate low morale or worry about dealing with the next round of layoffs in a few months or retaining quality staff,” said the former worker.
Read on to learn more companies that have announced layoffs this year.
And keep in mind that given CRN US’s B2B environment and channel, this report does not include tech layoffs at consumer education organizations.
CNN’s Kyle Alspach, Wade Millward, Mark Haranas and Gina Narcisi contributed to this report.
Orca Seguridad fires 60 people
On Jan. 3, Israeli outlet Calcalist reported that Orca Security, founded in Tel Aviv, Israel and Portland, Oregon, would lay off about 15% of the cloud security unicorn’s employees, or about 60 employees.
“Since Orca Security’s inception, a key guiding principle has been to grow responsibly and profitably,” the company said in a statement provided to CRN US.
“Given the prevailing macroeconomic conditions, we have made the difficult decision to say goodbye to some of our colleagues in the company. “
The cloud security firm plans to “announce updates on our long-term strategy in the coming weeks,” he said.
Last October, Orca Security’s most level-headed executives revealed their aspirations for the company to an IPO candidate in the coming years.
Founded in 2019, Orca recently secured a valuation of $1. 8 billion in 2021, from its $550 million Series C investment round.
Last year, the company unveiled a new distribution strategy that includes a commitment to generate 100 percent of its profits with the help of partners.
Xerox plans to cut by up to 15 percent
As part of Xerox’s “reinvention” unveiled in early January, the company plans to lay off about 15% of its staff this quarter.
Xerox had about 20,700 workers in June 2033, according to a regulatory filing filed in August, which would mean the company will lay off about 3,100 people.
Xerox specified which departments or geographies would be affected by the layoffs. However, the company said the proposed discounts would be subject to formal consultations with local works councils and workers’ representative bodies, where appropriate.
Xerox’s workforce has been shrinking, and sales of printers and copiers have also declined. At the end of 2022, the company had about 20,500 employees, a relief from about 2,800, or about 12%, from last year, according to a regulatory filing. .
Cloud Software Group lays off 12 percent
Cloud Software Group, the parent company of cloud provider Citrix, laid off about 12% of its global workforce, or about 1,000 workers, in early January as part of a corporate rationalization, and some of the laid-off workers will be hired through the group’s corporate channel components.
CSG CEO Tom Krause wrote in a LinkedIn post: “Cloud Software Group is committed to building a foundation for sustainable pricing for our consumers and partners. To those affected, thank you for your contributions during Cloud Software Group’s first year. Decisions are never taken lightly, but they are mandatory to build the most powerful foundation imaginable for the future.
In his article, Krause wrote that “for many of those roles, adding operations, security, and IT, we are working with partners who will rehire many of those Americans to continue to provide outsourced services to Cloud Software Group. “
The company expects that a portion of those laid off will be rehired as subcontractors.
This new wave of layoffs comes precisely a year after CSG reduced its workforce by 15 percent, with Citrix making plans to focus on its 1,000 most sensible consumers and move from intermediary and advertising accounts to service and solution providers.
Google lays off “hundreds”
Google demonstrated in mid-January that it was cutting “a few hundred” jobs in every department of its Google Assistant software business.
It’s part of a restructuring process the company is undertaking to bolster Google Assistant as it looks to roll out a new generation of generative AI into its portfolio.
Google announced last year that it would use its generative chatbot Google Bard AI to create a new, advanced edition of Google Assistant.
Google also signaled this week its decision to lay off many workers in its Devices and Services business unit, most commonly in its augmented reality division, but also in its Pixel, Nest and Fitbit hardware groups.
Later that month, Google announced the layoff of “a few hundred” workers in its advertising sales group.
Google CEO Sundar Pichai told workers that more layoffs are expected in 2024. “We have ambitious goals and will invest in our most sensible priorities this year,” Pichai said. “The truth is, in order to build the capacity for this investment, we have to make some tough decisions. “
Amazon to lay off 500 Twitch employees
Amazon revealed plans in mid-January to lay off 35% of Twitch, the company’s live video streaming business and one of the world’s most popular live-streaming platforms. The total cuts are just over 500 employees.
“We’ve worked hard over the last year to run our business as sustainably as possible,” Twitch CEO Dan Clancy wrote in a blog post this week.
“Unfortunately, we still have work to do to scale our business and I’m sorry to announce that we’re taking the painful step of cutting our workforce by just over 500 people on Twitch. It’s going to be a very difficult day. Our service exists to enable communities to create together, and you’ve played an important role in selling our netpaintings and furthering that mission.
Amazon’s Twitch supports 1. 8 billion hours of video content per month and is hugely popular in the gaming industry.
Veeam lays off another 300 people, plans to lease 500
Veeam Software, a developer of data coverage generation, began a series of layoffs in mid-January that affected 300 workers in sales, marketing and administration.
However, the Columbus, Ohio-based company, which has more than 5,000 employees, also revealed plans to increase its engineering payroll and progression with approximately 500 employees this year.
Matthew Bishop, Veeam’s Chief Operating Officer, said in a statement: “2023 was Veeam’s most productive year in terms of market share (now number one in the global market), expansion and profitability. Like any successful business, during annual planning, Veeam makes decisions to prioritize investment spaces that reflect the evolution of the business and the market. We don’t publicly disclose our confidential business plans, but we may announce that we’re expanding recruiting in certain spaces, moving some positions to new teams, and getting rid of other positions. Our primary goal today is to provide the most productive help imaginable to Veeam workers affected through the adjustments and help them find their next career opportunity.
Jamf lays off 6% of its workforce
Jamf, a maker of control and security equipment for Apple devices, disclosed in late January in a filing with the U. S. Securities and Exchange Commission that it was not going to be able to control and safety equipment. According to the U. S. Department of Homeland Security, a series of layoffs would affect 6% of its employees as the company sought “profitable growth. “
Minneapolis-based Jamf specified how many workers are expected to be laid off. The company recently reported its headcount at the end of 2022, when it hired 2,796 people.
However, a spokesperson said an estimate that another 170 people were laid off “is more or less correct. “
Jamf, in his SEC filing, said his reduction plan aims to “reduce operating costs, operating margins, and continue to advance the company’s continued commitment to successful growth. “
Salesforce reportedly laid off employees
By the end of January, Salesforce planned to lay off 700 employees, or about 1% of its workforce, according to multiple reports.
News of the new layoffs comes after the San Francisco-based developer of visitor appointment control equipment made the decision in early 2023 to lay off roughly 10% 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.
This decision would likely be more part of a system staffing adjustment than a strategic change. None of the outlets indicated which decomponents would cause cuts at Salesforce.
Proofpoint unveils plan to lay off 280 people
At the end of January, Proofpoint carried out a series of layoffs affecting 280 workers. The move from Sunnyvale, California, first reported through the Israel-based online newspaper Calcalist, affected about 6% of Proofpoint’s 4,500 workers worldwide.
Proofpoint showed the report in a document that said: “To position Proofpoint for continued, long-term good fortune as a world-class company operating at scale, we have made the difficult resolution to reduce our existing workforce by approximately 280 positions all over the world. . »
Proofpoint, a leading provider of data coverage and email security tools, said in a statement that the layoffs are part of a “forward-thinking corporate strategy to align our investments and hires with our strategic priorities. “
That strategy includes an effort across the personal equity firm to use a “global pool of skills” to “simplify our organization with fewer levels of management,” Proofpoint said.
“By mid-2024, we expect nearly a portion of the eliminated jobs to be transferred to our global hubs in Ireland and Argentina,” the company said in its statement on Wednesday.
“Along with continued hiring aligned with our key priorities, we expect to end 2024 with a year-long headcount. “
SAP is in favor of voluntary layoffs
SAP, founded in Walldorf, Germany, revealed plans in late January to roll out an enterprise-wide transformation program that includes a significant downsizing.
This restructuring is expected to result in a relief in the workforce of around 8,000 people, most of whom are expected to be covered by voluntary redundancy programmes and internal retraining measures.
However, expected hires to meet the company’s new desires are expected to increase headcount through the end of the year.
SAP, in a statement, wrote: “To prepare the company for highly scalable long-term earnings expansion. . . and in order for SAP’s suite of capabilities and resources to continue to meet long-term business needs, SAP plans to execute an enterprise-wide restructuring program. “In 2024. Se it expects that most of the approximately 8,000 positions involved will be filled through voluntary redundancy programmes and internal retraining measures. Thanks to reinvestments in strategic areas of expansion, SAP expects to end 2024 with a headcount similar to existing levels.
Okta Cuts Jobs
Okta, a San Francisco-based developer of identity and access control technology, told its workers in early February that it had eliminated 400 full-time jobs as part of a “restructuring plan,” representing 7% of its workforce. A year after the company announced the dismissal of three hundred workers.
Okta, in a filing with the U. S. Securities and Exchange Commission, said it was not a good idea to have a good idea of the U. S. “The company has announced to its employees a restructuring plan designed to boost its operations and reinforce the company’s commitment to successful growth. “
Okta co-founder and CEO Todd McKinnon sent an email to his team, a copy of which was also read by CRN US, which described the restructuring as a “difficult decision. “
“To grow profitably, we want to run the business more efficiently. While we have taken steps in the right direction, the truth is that prices are still too high,” McKinnon wrote in the email to employees.
“We want to be mindful of our overall spend so that we can continue to invest in the areas, products and avenues of market position with maximum opportunities,” he told staff. “To harness our enormous potential and build an iconic company, we want to think about where we position our bets. This action is a proactive measure for the company to succeed in the long run.
Zoom Says People Goodbye
In early February, Zoom Video Communications laid off about 150 employees, according to a Bloomberg report. A spokesperson for the San Jose, California-based company showed the cuts at CRN US.
“We compare our groups to make sure they are aligned with our strategy,” the spokesperson said. “As part of this effort, we are redefining roles to add features and continue to lease critical spaces for the future. “
The layoffs affect the entire company and Zoom plans to continue hiring for roles in synthetic intelligence, sales, products and operations in 2024, according to reports.
Zoom, which was a staple for millions of users around the world who operated remotely during the height of the COVID-19 pandemic, has noticed its popularity waning as many employees return to the workplace and corporations turn to hybrid models.
DocuSign plans to reduce its price by 6%
San Francisco-based DocuSign unveiled a restructuring plan in early February, the component of which includes relief of about 6 percent, with most positions affected in the company’s sales and marketing organizations.
The reduction was “designed to aid the company’s monetary and operational efficiency while proceeding to invest in similar products and projects that will provide the foundation to achieve its multi-year expansion aspirations as an independent public company,” DocuSign said in a statement. . .
Reuters reported that DocuSign had 7,336 workers as of Jan. 31, 2023.
Pure Storage lays off up to 275 employees
Pure Storage, a pioneer in flash shops in Santa Clara, California, laid off 275 employees, or about 4% of its total workforce, in early February, according to a report from Blocks And Files.
Layoffs have occurred in various areas of the company, adding knowledge protection, artificial intelligence and analytics, knowledge bases, alliances, and unstructured knowledge sets.
A spokesperson for Pure Storage said the layoffs were the result of a recently completed rebalancing initiative aimed at aligning its workers with the company’s strategic priorities and activities, Blocks And Files reported.
Cisco plans to reduce its price by up to 5%
In mid-February, Cisco Systems President and CEO Chuck Robbins told investors in the company’s financial report for the second quarter of 2024 that the company would cut jobs globally to adjust spending and investments to reflect the existing macroeconomic environment, leading to a decline in product revenue.
Cisco, in its second-quarter filings, revealed a company-wide layoff that would affect roughly 5% of its workforce, or about 4,250 employees, as it works to realign its organization to focus on “priority” areas.
The tech giant expects to recognize about $800 million in restructuring-like charges, which Cisco says are largely similar to severance and other one-time severance packages.
Most pricing is expected to occur in the fiscal third quarter and will continue through the first part of the company’s fiscal 2025 fiscal year.
Cisco announced at the end of the month that it would cut about 729 jobs in the San Francisco Bay Area through April.
CodeView Close
San Francisco-based CodeSee, which aimed to get companies to build their programs and provide a map of the app’s services, directories and records dependencies, shut down at the end of February.
CodeSee founder and CEO Shanea Leven said in a LinkedIn post in February that the company would close its doors and halt operations on Feb. 22.
At the time, Leven said he hoped to find a new home for the company’s generation and team to prevent the team from splitting up. He did not say how many other people were affected.
Leven used his message to explain why the business was closing.
“I can only apologize to everyone for this complicated turn of events. The company more than doubled the number of new product logos in 2023 and welcomed several thousand free users. However, our sales expansion was inconsistent and we needed to generate profits faster and more. consistently. Given the nature of code comprehension, this meant being able to cover more complex codebases, more IDEs, more technology stacks, and more programming languages in depth, which would have taken time we didn’t have. And AI generation has made this area even more complex, either as an assistive tool or as a source of more and more code to understand,” he wrote.
Ingram Micro layoffs, more to come
Ingram Micro is experiencing a new wave of layoffs, in addition to the layoffs of some of its middle managers, the store is silent about the extent of its staff cuts.
CRN US learned from sources at Ingram Micro that the company has suffered several rounds of layoffs, the most recent of which took place last week. It’s unclear exactly how many more people have been laid off.
However, CRN US learned through Ingram Micro and industry resources that several middle management workers were laid off in this cycle.
A recently fired former Ingram Micro employee, who requested anonymity, told CRN US via email that the recent waves of layoffs appear to be “without rhyme or reason” as to who fired and who retained.
“The message from the leaders is the same: you are the CEO of your career, don’t hesitate to move elsewhere; They don’t even make an effort to alleviate low morale or worry about dealing with the next round of layoffs in a few months or retaining quality staff,” said the former worker.
Kirk Robinson, executive vice president and president of the company’s North American operations, told employees in a Feb. 22 email to the “team” that the company had made the “difficult decision” to downsize.
CRN US obtained a copy of this email and the authenticity was proven through an Ingram Micro spokesperson.
“You may have heard that today we made the difficult decision to make a slight reduction within our organization in the U. S. We are working in the U. S. to align our resources with our existing business environment. This decision was not taken lightly and we understand that it will affect it. has in the valued members of our team.
“We are committed to supporting all affected workers through this transition and are offering comprehensive assistance, adding severance pay and relocation resources.
“Rest assured, our commitment to providing an exceptional visitor experience to our channel partners and affiliates 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 via email in the U. S. that it was not possible to do so. According to the U. S. Department of Energy, the distributor will close its complex logistics facility in O’Fallon, Missouri, at the end of June, resulting in the elimination of 60 positions.
Layoffs at IBM due to increased use of AI
According to a CNBC report, IBM is laying off workers in its communications and marketing department as the company turns to artificial intelligence to update non-customer-related features.
IBM CEO Arvind Krishna last year unveiled plans to suspend or slow hiring for about 26,000 non-customer-related administrative positions, or about 10% of the company’s overall workforce, where artificial intelligence and automation can play their part.
Krishna said up to 30% of those positions, or about 8,000 employees, could be replaced by artificial intelligence and automation in the next five years.
When asked about the layoffs, an IBM spokesperson said that in its fourth-quarter earnings report in January, IBM indicated that layoffs are possible.
“In this year’s fourth-quarter results, IBM disclosed workforce rebalancing fees that would constitute a very low single-digit percentage of IBM’s global workforce, and we expect to exit 2024 with more or less the same employment point we started with. ” IBM told CRN in a statement.