Tech Industry Hit by Mass Layoffs: Over 27,000 Jobs Cut in August 2024

Mass layoffs hit tech industry: Over 27,000 jobs cut as Intel, Cisco, IBM, and Apple slash workforce

Tech companies cut over 27,000 jobs in August 2024, with major firms like Intel, IBM, and Cisco among those announcing layoffs. Intel plans to reduce its workforce by 15%, while Cisco is shifting focus to AI and cybersecurity. IBM is discontinuing R&D in China. Other companies like Infineon, GoPro, Apple, Dell Technologies, ReshaMandi, Brave, and ShareChat also announced significant job cuts.Tech companies continued to cut jobs at a rapid pace in August 2024. More than 27,000 workers in the industry lost their jobs as over 40 companies, including big names like Intel, IBM, and Cisco, as well as numerous smaller startups, announced layoffs. To date, more than 136,000 tech workers have been laid off by 422 companies in 2024, indicating significant upheaval in the sector. Intel is undergoing one of the most challenging periods in its history, announcing 15,000 job cuts, which represents over 15% of its workforce. These layoffs are part of a $10 billion spending reduction plan for 2025, spurred by a disappointing second-quarter earnings report and outlook. Annual revenues for the company fell by $24 billion between 2020 and 2023, despite a 10% increase in its workforce during the same time frame. CEO Pat Gelsinger stated, "Intel's revenue growth shortfall is attributed to high costs and low margins, despite our leadership in the CPU chip revolution 25 years ago." Cisco Systems has also announced it is laying off around 6,000 employees, or about 7% of its global workforce, as it shifts its focus to high-growth areas such as AI and cybersecurity. This is the company's second major round of job cuts this year. CEO Chuck Robbins remains hopeful about the future, noting efforts to pivot toward emerging technologies. "Cisco is optimistic about rebounding demand for our networking equipment," he said. The company is restructuring to capitalize on these technologies and has committed $1 billion to investing in AI startups. Additionally, Cisco recently acquired cybersecurity firm Splunk for $28 billion. As part of the restructuring, Cisco plans to consolidate its networking, security, and collaboration departments into a single organization. IBM has decided to discontinue its research and development operations in China, leading to over 1,000 layoffs. Chinese media outlet Yicai reported on the situation, which stems from a decline in demand for IT hardware and difficulties in expanding within the Chinese market. IBM pledged that despite these changes, customer support in China will remain unaffected. "IBM will now prioritize serving private enterprises and select multinationals within the Chinese market," the company affirmed. Infineon, a German chipmaker, is also making significant cuts, with plans to reduce 1,400 jobs and relocate another 1,400 to countries with lower labor costs. CEO Jochen Hanebeck explained these measures were necessary due to third-quarter revenue falling short of expectations. "The slow recovery in target markets is due to prolonged weak economic momentum and excess inventory levels," he said, leading to a downgraded forecast for the third time in recent months. GoPro, the action camera manufacturer, will cut about 15% of its staff, totaling around 140 employees, as part of a restructuring plan. These layoffs aim to reduce operating expenses by $50 million from projected fiscal 2024 expenses. Apple has laid off around 100 employees primarily from its services group, which includes the Apple Books app and Apple Bookstore teams, with some engineering roles also affected. The company is redirecting resources toward AI programs, seeing Apple Books as a lower priority now. However, Apple News remains a focal point. This is not Apple's first round of layoffs this year; previously, it cut 600 employees from its Special Projects Group and shuttered a 121-person AI team in San Diego in January. As of the last report, Apple had 161,000 full-time equivalent employees. Apple declined to comment on the latest layoffs. Dell Technologies is reportedly reorganizing its sales teams, including establishing a new AI-focused group. Sales executives Bill Scannell and John Byrne mentioned in a memo that Dell aims to become leaner by streamlining management and reprioritizing investments. Rumors suggest that the company may have laid off about 12,500 employees, or 10% of its global workforce, but this has not been officially confirmed. ReshaMandi, a fabric startup based in Bengaluru, has laid off its entire workforce, according to sources cited by Entrackr. The company's website has been inactive for a week, coinciding with the resignation of its auditor. "It's all over for ReshaMandi," a source said. "The company is struggling to pay liabilities and bear operational costs, including salaries, for the past several months." Brave, a web browser and search startup, has laid off 27 employees across various departments, as confirmed by TechCrunch. This represents a 14% reduction from its estimated 191 employees. Brave previously cut 9% of its workforce in October 2023 due to cost management challenges in a difficult economic environment. ShareChat, a social media company also based in Bengaluru, has cut around 30-40 jobs, or roughly 5% of its workforce, following a bi-annual performance review in August 2024.

Over 27,000 tech employees loses job in August 2024: Intel, Cisco, IBM, Apple and others cuts thousands of jobs - Times of India

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