With most tech companies considering layoffs necessary to realign their organisational structure and priorities in preparation for future advancements, more than 100 000 employees in the sector have been culled since the beginning of the year, says research group Stocklytics.com.

“The recent layoffs accentuate the clear shift towards artificial intelligence (AI) and machine learning (ML) for these tech firms while also exposing the frantic workforce expansion that occurred during the pandemic – which most companies now deem was unnecessary,” says Edith Reads, financial analyst at Stocklytics.com.

“Despite a boom in profits and sales this year, layoffs persist among tech companies,” Reads adds. “These reductions span small and large tech firms suggesting a collective effort to reduce costs and enhance productivity.

“For instance, since the beginning of the year, Elon Musk’s Tesla has laid off roughly 10% of its workforce – around 14 500 employees,” she says. “Moreover, towards the end of January, SAP – a leading German multinational software company – shed over 8 000 employees, about 7% of its workforce.”