By early 2024, the global tech sector had cut about 32,000 jobs.

According to data from Layoffs.fyi, a website that tracks layoffs in the global tech industry, about 32,000 tech workers lost their jobs in the first months of 2024.

Snap - an American technology company, the father of the multimedia messaging app Snapchat, with more than 300 million daily active users worldwide became the latest example, announcing on February 5 that it would cut about 10% of its workforce, equivalent to 540 employees.

Earlier this month, US software company Okta also announced it would cut 7% of its staff, or about 400 people, to reduce costs. This is just one of many examples, including big tech corporations such as Amazon, Salesforce and Facebook (now Meta Platforms).

“Tech companies are still trying to recover from the pandemic-induced hiring glut this year, as both the high-interest rate environment and the tech industry downturn have lasted longer than initially expected,” Roger Lee, founder of Layoffs.fyi, wrote in an email.

According to Lee, there have been two major waves of job cuts in recent years. The first was the “Covid-19 pandemic outbreak phase” from Q1 to Q2 2020, and the second was the “interest rate hike effect” starting in Q2 2022.

While economic factors are the main reason for layoffs in the tech industry, Lee noted that many companies are citing the artificial intelligence (AI) race as the reason, as they are shifting resources to focus on AI talent.

The AI ​​industry is growing rapidly, and many tech companies are pouring money into the field. This leads to a demand for AI talent, but it also leads to layoffs in other areas of the tech industry.

Earlier this January, the tech giant Google cut hundreds of jobs, mostly from its Google Assistant and Fitbit fitness trackers, but rolled out a slew of AI products like new features in its Google Chrome browser. Following the company’s latest round of layoffs, Google CEO Sundar Pichai announced in a staff memo that more layoffs would be coming this year to “focus resources on growth in a number of areas.”

This shows that Google is making a major shift in its strategy, focusing resources on AI while cutting staff in other areas.

These changes could have a significant impact on Google employees. Many may be worried about being laid off. However, Google is also hiring for new positions in the AI ​​field. So there may be opportunities for laid-off employees to find new jobs within the company.

Around the same time as Google's layoffs, Amazon also said it was cutting several hundred jobs across its Prime Video streaming service and its film and television production and distribution arm Amazon MGM Studios. The e-commerce giant is also ramping up its investment in AI.

Meanwhile, German software company SAP, which develops and provides business management software solutions, announced that it will offer 8,000 employees the option to leave or move to another position as part of a $2.2 billion “transformation program” focused on AI to cut costs and increase profits.

But while increased investment in AI may be putting many people out of work, new roles are also being created in the field. Companies like Apple, Meta, and Nvidia are actively recruiting for AI-focused roles involving machine learning and natural language processing, with salaries well into the six figures, in an effort to attract the best talent in the field of creative AI.

It’s not all bad news about tech layoffs. In fact, the tech industry is also creating new jobs. According to a recent report, the tech industry is set to create more than 500,000 new jobs by 2023 alone.

These new jobs are often in the fields of AI, big data, and cybersecurity, so people with skills in these areas are more likely to find new jobs in the tech industry.

According to an analysis by CompTIA, which tracks job trends in the tech industry, the number of job postings “related to AI or requiring AI skills” increased by about 2,000 from December last year to 17,479 in January this year.

This shows that while the tech sector is cutting some jobs, it is also actively hiring in other areas. According to CompTIA, there were 33,727 active job postings in January, the largest monthly increase in the past 12 months.

“I feel like most of the layoffs have happened and companies will start to recover,” said Bert Bean, CEO of recruiting firm Insight Global. “But things are still very uncertain.”

Overall, the transformation of the tech industry is leading to both layoffs and new jobs. While some people may lose their jobs due to automation and the rise of AI, others will find new jobs in growing areas of the tech industry.