Following a wave of layoffs in the technology industry earlier this year, the number of job cutbacks has slowly decreased in recent months. According to layoffs.fyi, 35 tech companies cut off around 3,941 employees in September, with an additional 3,080 jobs lost in October.

The data for October show a continued reduction, keeping the pattern from prior months and marking one of the lowest points for layoffs since 2023.

In October, four technology corporations each shed more than 400 jobs, while another four companies cut roughly 300 workers. Despite these specific examples, the overall layoff figures for October were the lowest this year in terms of affected enterprises and total employees, according to a report.

This decline is consistent with a larger industry stability following peak layoffs earlier in the year, particularly in January, February, and April. In October, technology businesses from a variety of industries were disrupted, including cryptocurrencies, consumer services, finance, and healthcare.

Key layoffs and'strategic reorganization' in some organizations continue

Among significant companies, Dropbox, a US-based cloud storage and file hosting provider, reduced its employment by 527 employees in October, a 20% reduction. CEO Drew Houston said it as part of a 'transitional period' aimed at cutting sectors deemed 'over-invested' and creating a smaller team structure.

Similarly, bitcoin exchange Kraken downsized its workforce by 15%, or around 400 jobs, as part of a business restructuring. Kraken has also announced the appointment of a co-chief executive to support these organizational reforms.

TikTok, a social media app, has joined other corporations in downsizing, laying off hundreds of employees worldwide, the most of whom are apparently in Malaysia. The business ascribed this move to an increased reliance on AI for content monitoring, which decreased the need for specific personnel. Initial estimates suggested over 700 job losses, however ByteDance, TikTok's parent firm, eventually revised the figure to be about 500.

Challenges remain in the crypto and financial sectors

Layoffs in the cryptocurrency and financial sectors reflect the ongoing challenges of market volatility. Lending Club, a digital marketplace bank, and Karat Financial, a fintech firm, are said to have slashed staff due to continued economic constraints.Layoffs occurred in the healthcare sector as well, including at healthcare staffing platforms Nomad Health and healthcare technology business Carbon Health.

Throughout the year, employment layoffs have primarily impacted traditional IT industries such as software, hardware, and social media, with certain finance and AI roles also affected. This trend is due to the growing use of AI and automation systems, which have expedited operations while creating redundancies in certain roles.

As of August, the tech industry has lost approximately 136,000 jobs across 422 organizations, with substantial layoffs implemented by Intel, IBM, and Cisco, as well as smaller startups.