Key Points:
- Over 27,000 tech jobs lost in August 2024 across 40+ companies, pushing total layoffs to over 136,000 for the year.
- Intel announces largest cuts, reducing its workforce by 15,000 employees as part of a $10 billion cost-saving strategy.
- Cisco to lay off 6,000 workers while shifting focus to AI and cybersecurity.
- IBM shutters research facilities in China, leading to 1,000 layoffs.
- Other notable companies impacted include Apple, Dell, GoPro, and ShareChat.
Tech Industry Faces Another Round of Major Layoffs in August 2024
The tech industry took another hit in August 2024, with over 27,000 jobs being slashed as companies continue to grapple with financial challenges and strategic shifts. The year’s total job losses in tech now exceed 136,000 across more than 420 companies, reflecting ongoing uncertainty in the sector.
Intel Leads Layoffs with 15,000 Job Cuts
On Thursday, Intel announced a sweeping reduction of 15,000 employees, over 15% of its global workforce. The company’s restructuring is part of a larger effort to cut $10 billion in costs by 2025 after disappointing Q2 earnings. CEO Pat Gelsinger pointed to high operational costs and shrinking profit margins as key contributors to Intel’s difficulties, despite its longstanding dominance in the CPU chip market.
Cisco Trims 6,000 Jobs Amid Focus on Emerging Technologies
Cisco Systems revealed plans to lay off 7% of its workforce, impacting around 6,000 employees globally. This marks the second major layoff for Cisco this year as the company pivots towards AI and cybersecurity. Despite the cuts, CEO Chuck Robbins remains optimistic about future demand for Cisco’s networking products, underscored by the company’s $1 billion investment in AI startups and its $28 billion acquisition of cybersecurity giant Splunk.
IBM Shuts China R&D Operations, Lays Off 1,000 Employees
IBM’s decision to close its research and development centers in China resulted in over 1,000 job losses, as reported by Chinese media outlet Yicai. This move comes in response to declining demand for IT hardware and the company’s struggles with its business expansion in China, a key market that has seen diminishing returns for the tech giant.
GoPro, Apple, and Dell Join the Wave of Layoffs
- GoPro: The company is indeed cutting about 15% of its workforce, which translates to approximately 140 jobs. This move is part of a broader restructuring strategy aimed at improving profitability and streamlining operations.
- Apple: Recently, Apple laid off 100 employees from its digital services division, with the most significant impact felt by the Apple Books team. These layoffs align with a shift in strategy, where Apple is deprioritizing certain apps and services.
- Dell: Dell has undergone multiple rounds of layoffs, including a significant cut of 12,500 jobs, which accounts for about 10% of its workforce. These layoffs are part of a restructuring effort, especially to centralize its sales teams and focus more on AI-driven business growth.
Source: HR Grapevine & NewsBytes
ShareChat Reduces Workforce by 5%
India-based social media company ShareChat has laid off 30 to 40 employees, representing about 5% of its workforce. The reduction followed a bi-annual performance review in August.
Tech Layoff Trends Continue from 2023
The tech industry has been facing consistent challenges since 2023, when layoffs surged by 15% compared to the previous year. Over 1,150 tech companies laid off 260,000 employees in 2023, with Amazon, Microsoft, Meta, and SAP among the hardest hit. The trend has continued into 2024, with over 136,000 jobs already lost this year, marking an era of transformation and turbulence in the sector.
