The tech industry faced a turbulent August 2024, with more than 27,000 jobs slashed by major companies, including Intel, Cisco, IBM, and Apple. Smaller firms like Infineon, GoPro, and ShareChat were also affected, adding to the growing list of layoffs. The widespread job cuts reflect significant challenges within the sector as businesses shift focus to emerging technologies and navigate economic uncertainties.
Intel's Struggles and Workforce Reductions
Intel, one of the most affected companies, announced plans to reduce its workforce by 15%, resulting in the elimination of 15,000 jobs. This decision is part of a broader $10 billion cost-cutting strategy aimed at addressing financial setbacks, including a $24 billion revenue drop from 2020 to 2023. Despite once being a leader in the CPU chip market, Intel is now grappling with high operational costs and declining margins.
Cisco Systems: Restructuring for the Future
Cisco Systems is also implementing layoffs, cutting around 6,000 jobs, or 7% of its global workforce. The company is focusing on high-growth sectors like artificial intelligence (AI) and cybersecurity. This marks the second significant round of layoffs for Cisco this year, as it consolidates its operations. With $1 billion dedicated to investing in AI startups, Cisco remains optimistic about future growth and has recently acquired a major cybersecurity firm to strengthen its portfolio.
IBM Exits China’s Research and Development Space
IBM is cutting over 1,000 jobs as it discontinues research and development operations in China. This move is driven by declining demand for IT hardware and difficulties in expanding in the Chinese market. Although the layoffs will affect IBM’s presence in China, the company has assured that customer support in the region will continue.
Infineon’s Strategic Job Cuts
German chipmaker Infineon announced 1,400 job cuts, with plans to relocate another 1,400 positions to regions with lower labor costs. The company cited weak economic momentum and inventory issues for its disappointing third-quarter revenue, leading to these cost-saving measures.
Other Companies Impacted by Layoffs
Several other tech companies have been hit hard, resulting in substantial job losses:
GoPro plans to reduce its staff by 15%, cutting approximately 140 jobs as part of efforts to reduce operating expenses. Apple laid off around 100 employees, primarily from its services group, as it redirects resources toward AI programs. Dell Technologies is reportedly reorganizing its sales teams, potentially impacting thousands of employees, although the exact number of layoffs remains unconfirmed. ReshaMandi, a fabric startup, has laid off its entire workforce due to financial struggles, and the company’s future remains uncertain. Brave, a web browser startup, reduced its workforce by 14%, eliminating 27 positions as part of cost-cutting efforts. ShareChat cut 30-40 jobs, about 5% of its workforce, following a performance review.A Year of Challenges for the Tech Sector
In total, more than 136,000 tech employees have lost their jobs across 422 companies in 2024. This wave of layoffs underscores the challenges facing the tech industry as businesses adapt to changing market dynamics, prioritize AI and cybersecurity, and seek cost-effective solutions in a competitive landscape.
More To Read:
Indian Railways Announces 2024 NTPC Recruitment: Over 11,000 Vacancies
Cabinet Approves 12 New Industrial Smart Cities with Rs 28,602 Cr Investment