Over 27,000 tech jobs slashed in August
The technology sector has witnessed a significant reduction in workforce with over 27,000 job cuts announced in August 2024. Major firms including Intel, IBM, and Cisco are among those that have initiated these layoffs. This trend continues the rapid pace of job cuts seen throughout the year. So far in 2024, more than 132,000 tech workers have been laid off by over 422 companies.
Intel announces 15,000 job cuts amid financial challenges
Intel is facing one of its most challenging periods, announcing a reduction of over 15% of its workforce. This equates to approximately 15,000 job cuts. The layoffs are part of a $10 billion spending reduction plan for 2025, spurred by a disappointing second-quarter earnings report and outlook. Despite increasing its workforce by 10% between 2020 and 2023, annual revenues for the company fell by $24 billion during this period.
Cisco Systems to lay off 6,000 employees
Cisco Systems has also announced significant layoffs, with plans to cut around 6,000 jobs or about 7% of its global workforce. This move is part of the company's shift toward high-growth areas such as AI and cybersecurity. The company is reorganizing to capitalize on these technologies and has committed $1 billion to investing in AI start-ups. Additionally, Cisco recently acquired cybersecurity firm Splunk for $28 billion.
IBM discontinues R&D in China, leading to layoffs
IBM has ended its research and development operations in China, leading to over 1,000 layoffs. This decision stems from a decline in demand for IT hardware and difficulties expanding within the Chinese market. Despite these changes, IBM has assured that customer support in China will remain unaffected. "IBM will now prioritize serving private enterprises and select multinationals within the Chinese market," the company stated.
Infineon and GoPro announce significant job cuts
Infineon, a German chipmaker, is also making significant cuts with plans to reduce 1,400 jobs and relocate another 1,400 to countries with lower labor costs. GoPro, the action camera manufacturer, will cut about 15% of its staff or around 140 employees as part of a restructuring plan. These layoffs aim to reduce operating expenses by $50 million from projected fiscal 2024 expenses.
Apple and Dell Technologies also reduce workforce
Apple has laid off around 100 employees primarily from its services group. This is not Apple's first round of layoffs this year. Previously, it cut 600 employees from its Special Projects Group and shuttered a 121-person AI team in San Diego in January. Dell Technologies is reportedly restructuring its sales teams, including establishing a new AI-focused group. Rumors suggest that the company may have laid off about 12,500 workers but this has not been officially confirmed.
Indian firms have also laid off thousands of employees
Earlier this week, Reliance and Google-backed Dunzo laid off 75% of its workforce. Once valued at $775 million, the Bengaluru-based online delivery start-up has been struggling to raise money. Between June and August this year, Paytm, Unacademy, and Ola Electric have collectively slashed several hundreds of tech roles.
