FT: Tech titans slash 34 000 jobs since the start of 2024 in AI pivot

Tech companies like Microsoft, eBay, and PayPal have collectively eliminated 34,000 jobs since the beginning of the year, reflecting a shift towards investing in emerging technologies such as generative artificial intelligence (AI). This restructuring, observed across 138 tech firms, marks a strategic move to streamline operations and prioritise cost discipline while redirecting resources towards innovation. Analysts suggest that while last year's layoffs stemmed from a realisation that the pandemic-induced digital surge wasn't sustained, this year's actions appear more deliberate, with companies actively hiring alongside targeted workforce reductions to align with evolving market demands. Notably, companies like Meta and SAP are focusing on AI investments while undertaking workforce transformations, indicating a shift towards re-skilling rather than a net job loss, amid broader industry realignments.

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By Camilla Hodgson

Microsoft, eBay and PayPal have each cut thousands of jobs since the start of the year

Tech companies have axed 34,000 jobs this year as they rejig their workforces to invest in new areas such as generative artificial intelligence to power their next phase of growth.

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