Tech layoffs 2024: Tech companies lay off over 27,000 employees in August

Tech layoffs: Major IT firms such as Intel, IBM, and Cisco have laid off over 27,000 employees across the globe in August 2024

The tech sector witnessed a significant increase in job losses in August, with over 27,000 employees affected. Major tech firms, including Intel, IBM, and Cisco, along with more than 40 smaller startups, announced substantial layoffs. So far this year, the industry has seen over 136,000 tech professionals laid off across 422 companies.

Tech layoff: Intel cuts 15,000 jobs

On Thursday, Intel announced in a memo to its employees that it will be cutting 15,000 jobs, representing more than 15 per cent of its total workforce. This decision is part of a broader strategy to reduce spending by $10 billion by 2025, following a poor earnings report and outlook for the second quarter. Chief Executive Officer (CEO) Pat Gelsinger attributed the company’s revenue growth issues to high expenses and narrow profit margins, despite Intel’s historical dominance in the CPU chip market over the past 25 years.

 

August 2024 tech layoff: Cisco to lay off around 6,000 employees

Cisco Systems is cutting its global workforce by approximately 7 per cent, affecting around 6,000 employees, as it shifts focus towards high-growth areas like artificial intelligence (AI) and cybersecurity. This marks Cisco's second major round of layoffs this year.

CEO Chuck Robbins remains positive about a potential rebound in demand for Cisco’s networking solutions. The company is redirecting its efforts towards emerging technologies, having pledged $1 billion for investments in AI startups and recently acquiring the cybersecurity firm Splunk for $28 billion.

IBM lays off 1,000 employees

IBM is closing its research and development facilities in China, leading to the layoff of more than 1,000 staff, according to Yicai, a Chinese media source. The decision comes as IBM faces a drop in IT hardware demand and struggles with its expansion efforts in China, a market that once offered considerable promise and a strong business foundation outside the US.

Tech layoff 2024: GoPro lays off 140 employees

GoPro, a leading producer of action cameras, has announced a restructuring strategy that will cut its workforce by roughly 15 per cent, equating to around 140 jobs. This downsizing is expected to be completed by the end of 2024.

Apple lays off 100 employees

Apple has recently laid off around 100 employees from its services division, affecting teams related to the Apple Books app and Apple Bookstore. The reductions also included engineering positions. This move is part of Apple's strategic shift towards prioritising AI initiatives, leading to a de-emphasis on Apple Books.

Earlier this year, Apple cut around 600 jobs in its Special Projects Group due to the discontinuation of certain projects. Additionally, in January, the company disbanded a 121-member AI team in San Diego.

Dell cuts jobs in sales teams

Dell Technologies is restructuring its sales teams and introducing a new group dedicated to AI. According to a memo from sales leaders Bill Scannell and John Byrne, Dell is enhancing efficiency by simplifying its management structure and reallocating its investments. The company has laid off 12,500 employees, or 10 per cent of its global workforce.

ShareChat cuts 5% of jobs

ShareChat, a social media firm based in Bengaluru, reduced its workforce by around 5 per cent, which equates to around 30-40 employees, following a bi-annual performance evaluation conducted in August 2024.

Tech layoffs 2023

Lay offs in major IT companies rose by 15 per cent in 2023 over the previous year. More than 1,150 tech companies fired over 260,000 people in 2023, according to data from Layoffs.fyi.

Amazon laid off around 16,000 employees, while Microsoft laid off about 10,000 employees. Meta (Facebook's parent company) had cut the jobs of over 10,000 employees, and SAP had laid off 8,000 employees.

In July 2024, the tech sector experienced continued layoff trends, resulting in over 8,000 job losses across 34 tech companies. This rose the total number of layoffs for the year to 124,517 across 384 companies worldwide.
 

(With agency inputs)