Tech Layoffs Cross 27,000 In August

In August 2024, the tech industry saw a sharp rise in job cuts, with more than 27,000 employees impacted. Major companies like Intel, IBM, and Cisco, alongside over 40 smaller startups, announced significant layoffs. This brings the total number of tech professionals laid off this year to over 1,36,000 across 422 companies.

Intel Slashes 15,000 Jobs

Intel revealed in a memo to employees that it will be cutting 15,000 jobs, accounting for over 15 per cent of its workforce. This move is part of a broader effort to reduce costs by $10 billion by 2025, following a disappointing second-quarter earnings report. CEO Pat Gelsinger pointed to high expenses and narrow profit margins as key factors affecting the company’s revenue, despite Intel’s longstanding dominance in the CPU chip market.

Cisco to Cut 6,000 Jobs

Cisco Systems plans to reduce its global workforce by 7 per cent, affecting around 6,000 employees, as it shifts focus toward growth areas such as artificial intelligence (AI) and cybersecurity. This marks the company’s second major round of layoffs this year. Despite the layoffs, CEO Chuck Robbins remains optimistic about future demand for Cisco’s networking solutions. The company is also investing heavily in AI, with $1 billion allocated for AI startup investments and the recent $28 billion acquisition of cybersecurity firm Splunk.

IBM Lays Off 1,000 Employees

IBM is closing its research and development facilities in China, leading to the layoff of over 1,000 employees. This decision follows a decline in IT hardware demand and challenges in expanding within the Chinese market, once a promising area for the company outside of the U.S.

GoPro Restructures, Lays Off 140 Employees

GoPro, a leader in action camera production, has announced a restructuring plan that will see its workforce reduced by around 15 per cent, with approximately 140 jobs cut. The restructuring is expected to be completed by the end of 2024.

Apple Lays Off 100 Employees

Apple recently laid off around 100 employees from its services division, particularly teams related to the Apple Books app and bookstore, as well as engineering positions. This follows Apple's strategic shift toward prioritizing AI initiatives. Earlier in the year, Apple also cut 600 jobs from its Special Projects Group and disbanded a 121-member AI team in San Diego.

Dell Lays Off 12,500 Employees

Dell Technologies is restructuring its sales teams and forming a new group focused on AI, resulting in 12,500 job cuts, or 10 per cent of its global workforce. The company aims to improve efficiency by streamlining its management structure and reallocating investments.

ShareChat Reduces Workforce by 5%

Bengaluru-based social media company ShareChat reduced its workforce by 5 per cent, affecting 30-40 employees, following a performance evaluation in August 2024.

In 2023, layoffs in major IT companies surged by 15 per cent compared to the previous year, with over 260,000 employees let go across 1,150 companies. Amazon, Microsoft, Meta, and SAP were among the companies executing significant cuts. By July 2024, layoffs in the tech sector had continued, with over 8,000 job losses in 34 companies, bringing the year's total to 124,517 across 384 companies worldwide.