Tech Layoffs Still in Spotlight After Apple and Take-Two Cuts. But How Does 2024 Compare to 2023?

Videogame maker Take-Two has announced plans to lay off about 5% of its workforce.

The tech sector layoffs that characterized 2023 have continued into 2024 with several big-name companies announcing cuts.

Earlier this year $Amazon.com(AMZN)$   announced that it is cutting "several hundred" roles across its Prime Video and MGM Studios organization while Twitch, the Amazon-owned live-streaming platform, said it is cutting over 500 jobs. Snapchat parent $Snap Inc(SNAP)$   also announced plans to cut about 10% of its staff as part of a restructuring.

$Apple(AAPL)$   recently said it is laying off more than 600 workers in Silicon Valley, marking the company's first significant job cuts since the COVID-19 pandemic. The layoffs, which were first reported by the San Francisco Chronicle, were revealed in a filing with the state of California.

On Tuesday videogame maker $Take-Two(TTWO)$   announced plans to lay off about 5% of its workforce, cancel some games and end projects. The move is part of Take-Two's effort to save about $165 million a year.

That followed electric-vehicle giant Tesla, which announced job cuts that would lay off more than 10% of its global workforce, according to industry publication Electrek. Tesla has not yet responded to a request for comment on this story from MarketWatch.

Tech layoffs have been a key feature of recent years, with a host of companies ranging from Big Tech to smaller firms making cuts. More than 74,000 global technology-sector employees have been laid off at 257 tech companies since the start of 2024, according to data compiled by the website Layoffs.fyi. However, this number is significantly less than at the same time last year, which saw more than 171,000 employees lose their jobs from the start of 2023.

Some 263,180 employees were laid off at 1,192 tech companies around the world in 2023, according to Layoffs.fyi's data - up from 165,269 layoffs at 1,064 tech companies in 2022.

"Take-Two's decision to trim its headcount and release pipeline makes sense given increasing competition within the video game space, with the gamer appetite for sub-AAA content having eroded significantly over the last decade or more," wrote Wedbush analyst Nick McKay, in a note released Wednesday. "Simply put, management is likely making the right decision in (presumably) doubling down on the projects with the highest return-on-investment potential."

Take-Two shares are up 0.7% in premarket trades Wednesday.

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