As June begins, the wave of layoffs in the tech industry shows no signs of stopping. Despite the massive layoffs in 2023, job cuts continue to pile up this year, with the second quarter seeing the biggest job cuts – 21,473 in April and 9,742 in May. However, the trend seems to be worsening again, with more than 1,400 jobs lost in the first week of June alone. Major companies like Microsoft and Google have started the month with a fresh round of layoffs, citing ongoing restructuring and strategic changes in the tech sector.

On Monday this week, Microsoft announced a new round of layoffs, affecting about 1,000 employees. These cuts primarily affect departments working on HoloLens 2 and the ambitious Azure Moonshots project. The areas affected include the Mixed Reality wing, which has been integral to the development of HoloLens 2, and the Azure for Operator and Mission Engineering departments.

According to the company, the latest job cuts are part of a broader restructuring initiative within Microsoft’s Mixed Reality division. This follows a significant layoff a year ago when the company cut more than 10,000 jobs. At the time, CEO Satya Nadella highlighted changes to the company’s hardware portfolio, which now looks to extend to their advanced technology and cloud services divisions. Both the operator and mission engineering departments, established in 2021, are now bearing the brunt of these changes.

Following Microsoft’s lead, Google has also begun layoffs, targeting several teams within its fast-growing cloud unit. The latest cuts affect hundreds of employees across various departments, including sales, consulting, ‘go-to-market’ strategy, operations and engineering. The layoffs come as Google places a greater emphasis on artificial intelligence, marking a strategic turn toward this emerging field.

Despite the cloud unit being one of Google’s fastest-growing areas, the company has found it necessary to cut its workforce, indicating a possible reallocation of resources toward more AI-focused projects. According to a CNBC report, employees were informed of the impending layoffs last week, which have now become effective.

Notably, the layoffs at Microsoft and Google are part of a broader trend affecting the tech industry. In the first six days of June alone, seven tech companies have announced job cuts, collectively affecting 1,410 employees. As the month progresses, it remains to be seen whether this trend of layoffs will continue or companies will stabilize their workforce.

To recall, the tech industry saw a significant reduction in layoffs in May 2024 compared to previous months, with 39 companies cutting a total of 9,742 jobs, down from 21,473 layoffs across 50 companies in April. Layoffs occurred across the industry, including Google eliminating nearly 200 engineering positions in Sunnyvale, California, part of a broader downsizing effort that began last year. Other major cuts came from Indeed, which laid off 1,000 employees, roughly 8 percent of its workforce, primarily affecting research and development units in the US. Additionally, Toshiba announced 4,000 job cuts as part of its restructuring efforts, TikTok laid off 1,000 employees globally from its operations and marketing teams, and Walmart initiated job cuts and employee relocations that impacted its corporate workforce.

Additionally, Microsoft’s gaming division saw a large number of layoffs, which led to the closure of several developers such as Arkane Austin, Tango Gameworks, and Alpha Dog Studios. Tesla laid off more than 6,700 employees across various departments, including software, service, and engineering, with layoffs occurring in multiple locations such as Texas and California. These cuts reflect ongoing restructuring and cost-cutting measures across the tech industry as companies adapt to changing market conditions and regulatory environments.