More than 27,000 job cuts were announced in August from the tech sector. Industry giants like Intel, IBM, and Cisco have started pink-slipping employees. This follows a year of accelerating layoffs. To date in 2024, over 422 companies have let go of more than 132K tech workers.
Intel Layoffs
Intel to declare 15,000 job cuts due to Financial challenges
One of the most difficult periods had to pass Intel. It will cut more than 15 % of its workforce. Which adds up to about 15,000 jobs. A second-quarter earnings report and outlook have prompted a $10 billion cost-cut plan for over five years, and layoffs are part of the equation. Over that period, however, company annual revenues dropped by $24bn from 2020 to 23 though it is adding a (mere).
Cisco Layoffs
6,000 employees set to go at Cisco Systems
Cisco Systems Inc. made its mark in this contraction as well, announcing plans to reduce expenses through 6,000 job cuts (or about 7% of jobs worldwide). The company is making this move so that it can focus more on high-growth areas such as AI and cybersecurity. The company is restructuring around these technologies and has pledged $1 billion for AI start-up investments. On top of that, Cisco acquired cybersecurity company Splunk for $28 billion.
IBM Layoffs
IBM Completely Shut Down Research and Development in China. 1000 People Lost Job The decision is a result of falling demand for IT hardware and challenges expanding in China. However, IBM is claiming this will not be impacting Chinese customer support. The company added: “Good Cloud has moved the IBM manufacturing business model to a brand-new scalable system, and from now on IBM China will focus only on private enterprises service with capability for selective MNCs in the Chinese market.
Shell Layoffs: Cost Cutting Impacts 1800 Employees
Apple and Dell Layoffs
Apple has just laid off about 100 people, most from its services group. The cuts follow the same pattern as previous layoffs earlier this year at Apple. It had cut 600 staff as part of a restructuring at its Special Projects Group and closed down a San Diego-based AI team that employed 121 people in January. Dell Technologies is making sweeping changes to its sales team, including the creation of a dedicated AI unit according to reports. About 12,500 workers were reportedly laid off, according to rumors but these have not yet been confirmed by the company.
Collegedunia Layoffs: Education Portal Lays Off Around 100 Employees
Other layoffs
Infineon, GoPro: Massive layoffs
German chipmaker Infineon is also cutting jobs with a move to cut 1,400 positions and shift another 1,400 to areas where labor costs are lower. Action camera manufacturer GoPro to cut 15% of staff (140 employees) as part of a restructuring program. The layoffs are projected to trim $50 million from estimated fiscal 2024 operating expenses.
Dunzo Layoffs: Cost Cutting Impacts 150 Employees
The 2024 'tech' layoffs have begun. I expect there to be a *lot* of them as we slowly shift into the new economic reality. Note that 'hundreds of employee'-sized layoffs are very small to both Google and Amazon, but you can take this as a directional indicator (companies almost…
— Jonathan Blow (@Jonathan_Blow) January 11, 2024
Also Read: Positive and Negative Impacts of Technology
