Tech layoffs fall in October as IT industry shows signs of stabilising

October's layoff numbers reveal a continuing decline, maintaining the trend established in previous months and marking one of the lowest points for layoffs since 2023

Following a wave of layoffs across the tech industry earlier this year, the pace of job cuts has been steadily decreasing in recent months. In September, 35 tech companies laid off approximately 3,941 employees, while October saw a further drop, with 30 companies shedding 3,080 jobs, according to data from layoffs.fyi.  

October’s numbers reveal a continuing decline, maintaining the trend established in previous months and marking one of the lowest points for layoffs since 2023.

  Four tech firms each cut more than 400 positions in October, with an additional four companies trimming around 300 jobs each. Despite these individual cases, the overall layoff figures for October were the lowest this year in both affected companies and total employees, according to a report by The Indian Express.  

 

This reduction aligns with a broader industry stabilisation following peak layoffs observed earlier in the year, particularly in January, February, and April. Tech companies across various sectors, including cryptocurrency, consumer services, finance, and healthcare, were impacted in October.

 

Key layoffs and ‘strategic restructuring’ in some firms continue

Among major players, US-based cloud storage and file hosting company Dropbox downsized by 527 employees in October, representing a 20 per cent reduction in its workforce. CEO Drew Houston described this as part of a ‘transitional period’ focused on streamlining areas deemed ‘over-invested’ and designing a leaner team structure.  

Similarly, cryptocurrency exchange Kraken reduced its staff by 15 per cent, approximately 400 jobs, as part of a corporate restructuring. Kraken also announced the appointment of a co-chief executive to support these organisational changes. 

Social media app TikTok joined other companies in downsizing, cutting hundreds of jobs from its global workforce, with most of the layoffs reportedly in Malaysia. The company attributed this shift to an increased reliance on AI for content moderation, which reduced the need for certain positions. Initial reports indicated over 700 job losses, although ByteDance, TikTok’s parent company, later clarified the figure to be around 500.

 

Challenges persist in crypto and financial sectors

Layoffs in the crypto and finance sectors reflect continued challenges amid market volatility. Digital marketplace bank Lending Club and fintech Karat Financial reportedly reduced staff in response to ongoing economic pressures. The healthcare sector also saw layoffs in healthcare staffing platforms like Nomad Health and healthcare tech company Carbon Health. 

Throughout the year, job cuts have been concentrated in traditional tech fields, such as software, hardware, and social media, with some fintech and AI roles also affected. This trend is attributed to an increasing adoption of AI and automation tools, which have streamlined operations and resulted in redundancies in certain roles.  

As of August, the tech industry had already lost over 136,000 jobs across 422 companies, with Intel, IBM, and Cisco among those implementing major layoffs alongside smaller startups.