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AI is a growing factor in these layoffs. In September, AI accounted for 5,616 job cuts, contributing to a total of 12,742 AI-related layoffs in 2024.So far, all of these AI-driven cuts have been within the tech industry.

Disrupted Hiring Plans

Hiring plans are definitely on the decline. 

US employers announced 403,891 planned hires in September 2024, a 32% drop from last year. This is notable since September typically has increased hiring to fill positions before the end of the fiscal year and the holiday season.

These trends indicate that companies are trying to boost profitability in a slowing economy by cutting costs, either through job automation or workforce reduction. 

In September, cost-cutting was cited as the reason for 15,750 layoffs, with store closures contributing to another 14,054 and market conditions accounting for 6,933 cuts.

Boosting Profit

After widespread layoffs in 2022 and early 2023, many tech companies have shifted to a more strategic, department-by-department approach to job cuts.

Major firms like Google, Amazon, and Microsoft have made significant reductions, but trying to move toward more modest trimming.

Google, for instance, started 2023 by cutting 12,000 jobs, about 6% of its workforce, and followed that with smaller cuts throughout the year.

Meta has been cutting jobs in some areas and expanding in others. According to analysts, Meta is no longer hiring VR engineers, but has ramped up hiring for AI engineers, which aligns with industry trends.

Meta CEO Mark Zuckerberg’s decision to make these cuts was “beautifully rewarded” by the market, as the company's stock price rose following the layoffs.

Zuckerberg even dubbed 2023 Meta’s "year of efficiency," signaling that this leaner approach to staffing could continue.