The year 2024 has begun with a series of job cuts in the tech industry, reminiscent of the trends seen in 2023. Companies like Duolingo, Twitch, Amazon, Google, and Discord have all announced layoffs in the early weeks of the year. However, experts suggest that these layoffs do not necessarily indicate a repeat of the brutal job market seen in recent years.

Compared to the mass layoffs of late 2022 and 2023, the current job cuts are relatively smaller in scale. The tech job market is not necessarily on a downward spiral, but rather these layoffs reflect shifting priorities within these companies.

Rachel Sederberg, a senior economist at labor analytics firm Lightcast, notes that the tech sector as a whole appears healthy, with consumer habits stabilizing after the rapid changes caused by the Covid-19 pandemic. Some of the recent job cuts are targeted at specific departments and products, aligning with companies’ strategic decisions.

Daniel Keum, an associate professor of management at Columbia Business School, explains that the ongoing shifts are a result of companies seeking to utilize automation and generative AI, rebalancing their workforce and priorities. Generative AI-related job postings increased significantly in the past year, even amid job losses in the tech industry.

Despite these layoffs, the overall job market remains steady. The US unemployment rate was 3.7 percent in December, and the tech job unemployment rate stands at a lower 2.3 percent, according to CompTIA. While big tech firms have undergone significant downsizing, tech workers may find opportunities in other sectors or opt to start their own ventures, highlighting resilience within the industry.