TECH - Tech Giants Including Microsoft Alphabet PayPal Slashed 34000 Positions For Generative AI Investment In 2024: Report | Benzinga
In a strategic move to invest in generative artificial intelligence (AI), major tech companies have collectively cut 34,000 jobs since the beginning of 2024.
What Happened: Companies such as Microsoft Corp (NASDAQ:MSFT), Alphabet Inc (NASDAQ:GOOGL) (NASDAQ:GOOG), PayPal Holdings Inc (NASDAQ:PYPL), and eBay Inc (NASDAQ:EBAY) have been restructuring their workforces to focus on AI, reported the Financial Times.
Analysts believe that these layoffs are part of a broader trend in the industry, where companies are reevaluating their workforce and reallocating resources to invest in new technologies. This move is also seen as a demonstration of the companies’ commitment to cost discipline.
According to Layoffs.fyi, a website that tracks job cuts in the industry, a total of 138 tech companies have laid off staff this year. This number is significantly lower than the 263,000 job cuts that occurred in 2023, following a period of over-investment during the pandemic.
"Anybody working in tech or games right now is worried about lay-offs to some degree, either for themselves or someone they know," said Autumn Mitchell, a quality assurance tester ...