Unpacking 2025: Surprising Employee Layoff Trends Across Industries

Introduction

Employee Layoff Statistics: A layoff occurs when a business terminates an employee’s position, whether temporarily or permanently, for reasons unrelated to their job performance. Organizations often implement layoffs to cut expenses, especially during times of reduced demand for their products or services, such as in a recession. Being laid off differs from being dismissed for misconduct or poor job performance.

As enterprises navigate evolving market demands, emerging technologies, and economic hurdles, layoffs have increasingly become a pressing issue impacting job security. In total, approximately 172,012 employees were laid off from 1,220 companies throughout the United States. The technology sector experienced the most significant impact, with 141,076 layoffs across 468 tech firms alone. This article, “Employee Layoffs Statistics,” will examine the latest patterns in layoffs and their evolution over time, alongside providing further insights.

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• Employee Layoffs Statistics indicated that close to 1.5 million individuals lose their jobs each month.
• In the United States, over 172,012 employees were laid off by 1,220 distinct companies.
• A total of 141,076 individuals were dismissed from 468 tech companies.
• Job reductions in the US fell by 49% in June 2023.
• More than 224,503 employees in tech firms faced mass layoffs throughout 2023.
• 21% of companies are projected to initiate layoffs.
• Employee layoff statistics revealed that around 61% of adults aged 18 to 34 expressed feelings of stress and anxiety concerning potential layoffs.
• Women have a 25% lower probability of being laid off compared to men.

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What Is Layoff?

A layoff, also referred to as downsizing, is the act of a company letting go of one or more employees, either temporarily or permanently, for business-related reasons such as workforce management or decreasing the company’s scale. Initially, the term “layoff” denoted a brief hiatus from work, but it has evolved to signify the permanent removal of a job position. If the layoff is of a temporary nature, the term “temporary” is used for clarity.

(Source: collegevidya.com)

Workers who are laid off or displaced are those who lose their jobs due to company closures, relocations, insufficient workload, or the elimination of their roles. Downsizing emerged as a prevalent practice in the 1980s and 1990s, as businesses began to trim their workforces to cut costs and enhance shareholder value. Studies in nations like the US, the UK, and Japan indicate that downsizing is frequently perceived as a strategy for struggling companies to cut expenses and improve performance.

In many instances, organizations utilize layoffs as a method to reduce costs. A study analyzing 391 downsizing announcements from S&P 100 companies during the period from 1990 to 2006 found that accompanying layoff announcements, those companies saw a rise in their stock prices, particularly if they had previously engaged in layoffs. This implies that businesses may leverage layoffs to boost stock values, which may encourage further job cuts.

General Employee Layoff Statistics

• Numerous companies have recently been compelled to conduct layoffs due to various factors, including financial difficulties or corporate restructuring:
• Employee Layoff Statistics reported that Netflix, the widely-used streaming service, has dismissed around 150 employees.
• Lido Learning, a learning technology firm in Mumbai, reportedly eliminated between 150 and 200 job positions.
• Cars24, a car-selling platform, laid off more than 600 individuals.
• In 2023, tech firms in the United States alone dismissed nearly 226,000 workers.
• Meesho, an e-commerce startup, terminated 280 positions in January 2023 within its grocery division.
• Coinbase, the leading cryptocurrency exchange, released around 20 employees.
• Carvana, an online used car retailer, dismissed nearly 2,500 workers by the end of November 2023.

(Source: statista.com)

• Robinhood, an online trading platform, terminated 7% of its workforce in June 2023.
• In the second quarter of 2023, Tesla released 229 employees from its Autopilot division.
• Twitter let go of 10 members from its talent acquisition team in February 2023.
• Shopify, an e-commerce enterprise, reduced its workforce by approximately 20% in May 2023 to save costs.
• Barstool Sports laid off 25% of its staff in August 2023.
• SWVL, a transportation company based in Dubai, intends to reduce its workforce by 32%, resulting in 400 job losses.
• Employee Layoffs Statistics indicated that Grinder Company eliminated about 46% of its personnel in 2023.
• Ford Motor is laying off approximately 580 workers, comprising salaried and contracted employees.
• Volkswagen intends to release around 4,000 employees at its facilities in Germany.
• Google reduced its workforce by 6% in January 2023.
• com, a cryptocurrency platform, dismissed 150 employees, amounting to 25% of its workforce, due to financial difficulties.
• These workforce reductions stem from various companies within numerous sectors experiencing challenging times and seeking to curtail expenses.

Biggest Tech Layoff Globally Between 2020-2024 by Company

(Reference: statista.com)

• As of January 2024, Amazon reported the highest number of layoffs in the tech sector, with over 27,000 employees dismissed across five rounds.
• Meta and Google followed, with approximately 21,000 and 12,000 layoffs, respectively.
• Layoffs began across all industries in 2020 due to the COVID-19 pandemic, and tech firms saw an even greater extent of job cuts in 2022.
• In the first quarter of 2023 alone, over 167,000 employees were laid off globally, marking a record high for a single quarter. This figure exceeded the total layoffs for the entire year of 2022.
• Various sectors, including retail, finance, and education, have been impacted by these layoffs, although retail tech startups faced the highest number of job reductions.
• By September 2023, approximately 29,000 layoffs had been recorded in the retail tech sector alone.
• Most of these layoffs occurred in the United States, home to major tech companies such as Amazon, Meta, and Google.
• Employee layoff statistics noted that tech firms began laying off employees in 2020 due to the pandemic’s effects, which led to lockdowns and restricted movement.

(Source: trueup.io)

• While some operations started resuming in 2021, factors such as the Russia-Ukraine war, a decline in production in China, and rising inflation created significant challenges for the tech industry.
• These issues, including increased material and labor costs and decreased profit margins, continue to impact tech companies today.
• In response, many tech organizations are modifying their strategies. For example, in the US, firms are prioritizing customer retention, automating software solutions, and cutting costs to navigate ongoing financial pressures.

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Mass Layoffs In Current Times

• Alphabet, the parent organization of Google, chose to terminate 12,000 employees in January 2023. This constitutes the most significant workforce reduction in the firm’s history, accounting for 6% of its total personnel.
• Ericsson, a tech enterprise based in Sweden, will release 8,500 staff globally as part of a strategy to save $860 million. This marks the largest job elimination for the firm in over five years.
• Microsoft CEO Satya Nadella indicated in a memo that the corporation will reduce 10,000 jobs by the close of March 2023 as part of its restructuring initiatives.
• Amazon CEO Andy Jassy declared on January 4, 2023, that approximately 18,000 positions would be eliminated, predominantly within corporate and technology divisions.
• Disney CEO Bob Iger announced on February 8, 2023, that the firm intends to terminate 7,000 staff members, representing around 3% of its worldwide workforce.
• Below is a table illustrating the mass layoffs in 2023:

Layoff Demographic Statistics

Job eliminations affect various age demographics and genders uniquely, and educational attainment can also influence an individual’s likelihood of being laid off. Below are some essential insights into how layoffs impact distinct groups:

(Reference: 365datascience.com)

• 61% of individuals aged 18 to 34 express concerns about layoffs and experience stress as a result.
• 41% of individuals aged 35 and above also report feeling anxious about layoffs.
• The Employee Layoffs Statistics indicated that roughly 51% of individuals in the 18 to 34 age bracket feel ill-equipped for a possible layoff.
• Only 36% of degree holders have been affected by layoffs.
• 45% of men have faced layoffs, whereas just 36% of women have reported the same.
• 12% of men have undergone layoffs more than twice, while merely 4% of women have said the same.
• The Employee Layoffs Statistics revealed that around 52% of individuals with some college experience have…
  • Individuals with educational backgrounds have been dismissed.
  • 30% of workers aged 55 and older feel ill-equipped for a layoff.
  • In total, 46% of the workforce feels unready for being let go.

  Organizations Experiencing Layoffs in 2024

  (Source: thehindu.com)

  (Source: thehindu.com)

  Statistics on Tech Layoffs by Sector

  (Source: thehindu.com)

  Sector	2022	2023	2024
  Hardware	3605	24,459	24,706
  Transportation	16,067	10,947	18,628
  Finance	12,999	16,566	10,803
  Consumer	19,856	30,303	10,092
  Retail	21,214	32,133	9040
  Food	11,488	20,822	6701
  HR	3682	5115	738
  Travel	1637	4297	3318
  Healthcare	15,058	18,470	3147
  Education	8729	5885	1960
  Media	1879	5641	1828
  Data	1329	5533	1835
  Sales	2601	9848	1495
  Security	3699	5025	866
  Marketing	3597	5335	682
  Real Estate	9932	2498	339
  Crypto	8263	5104	225

  Final Thoughts

  The statistics regarding employee layoffs for 2024 indicate that numerous organizations globally are enduring challenging periods, leading to the inevitable announcement of job eliminations and hiring freezes. Although the economy is gradually improving, a large number of enterprises continue to face difficulties.

  Consequently, layoffs are anticipated to persist at elevated levels. Jobseekers should be mindful of these obstacles and prepare for a challenging employment landscape. Nevertheless, maintaining a positive outlook for the future is critical.

  Which workers are most at risk of layoffs?

  The professional and business services sector experiences the highest number of layoffs annually, while the mining and logging sector sees the least.

  Who is usually laid off first?

  Generally, the most recent hires are the first to be dismissed. This occurs because they have not had enough time to demonstrate their worth to the organization.

  

  Joseph D’Souza

  Joseph D’Souza founded Coolest Gadgets in 2005 to share his passion for technology gadgets. Since then, it has grown into a well-known tech blog, recognized for comprehensive gadget reviews and company statistics. Joseph is dedicated to delivering clear, thoroughly researched content, making technology accessible to all. Coolest Gadgets is a respected resource for tech news, favored by both enthusiasts and novices.

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