Massive Tech Layoffs in August 2024: Over 27,000 Jobs Cut by Intel, Cisco, IBM, and More

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August 2024 marked another wave of mass tech layoffs, with over 27,000 employees losing their jobs across more than 40 companies. Intel, Cisco, and IBM have led these cuts, focusing on restructuring and cost reduction to adapt to a challenging economic environment.
Massive Tech Layoffs in August 2024

The tech industry is facing a turbulent year, with August 2024 witnessing a new wave of layoffs that saw over 27,000 jobs eliminated across more than 40 companies. Companies leading this trend are Apple, Cisco, IBM, Intel, and others; they have announced large layoffs in response to changing market conditions, technological advancements, and economic difficulties.

Intel: A Major Player in Layoffs

Intel, a leading semiconductor manufacturer, has announced one of the largest layoffs in its history, planning to reduce its workforce by 15%, equivalent to about 15,000 employees. This decision is part of a bigger billion-dollar cost-cutting strategy for 2025. The choice was made in the wake of a dismal financial report for the second quarter that revealed a large gap in revenue growth.

From 2020 to 2023, Intel’s annual revenues dropped by billion, despite the company increasing its workforce by 10% during the same period. In response to the company’s challenges, CEO Pat Gelsinger said, “Despite our leadership in the CPU chip revolution 25 years ago, Intel’s revenue growth gap is attributed to high costs and low margins.” As it navigates a challenging financial landscape, Intel is likely to benefit from the layoffs by streamlining operations and concentrating on its core competencies in semiconductors.

Cisco Systems: Shifting Focus to AI and Cybersecurity

Cisco Systems, another major tech player, has also announced plans to lay off approximately 6,000 employees, which is about 7% of its global workforce. This marks the company’s second big round of job layoffs in 2024. Cisco is experiencing a strategic realignment, with a greater emphasis on high-growth domains like cybersecurity and artificial intelligence (AI).

CEO Chuck Robbins remains optimistic, stating, “Cisco is optimistic about rebounding demand for our networking equipment.” The company has committed billions to invest in AI startups and recently acquired the cybersecurity firm Splunk for billions. Cisco is restructuring in order to establish a more streamlined and effective business model. This includes combining its networking, security, and collaboration departments into one entity.

IBM: Exiting the Chinese Market for R&D

IBM has made the decision to discontinue research and development in China, which will result in more than 1,000 job cuts. This choice was made in the midst of dwindling IT hardware demand and difficulties growing its brand in China. IBM made a strategic change in order to focus on serving individual businesses and a few multinational organizations in China, according to the Chinese media portal Yicai.

IBM has stated that its R&D operations will not be harmed and that customer service in China will continue as usual. The layoffs are part of IBM’s larger initiatives to save expenses and reallocate personnel to areas and markets with higher growth prospects.

Apple: Reallocating Resources Towards AI

Apple, one of the most well-known brands in technology, has also contributed to the wave of layoffs. The company recently fired off approximately 100 people from its services division, which included the teams behind the Apple Books app and Apple Bookstore. Apple is refocusing on AI programs, which will also impact some engineering positions. This follows an earlier round of layoffs in January 2024 when Apple cut 600 employees from its Special Projects Group and disbanded a 121-person AI team in San Diego.

While Apple News remains a priority, other services, such as Apple Books, are being deprioritized. As the company continues to innovate in AI, it appears to be reallocating resources to align with its long-term strategic goals.

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Other Companies Hit by Layoffs

The list of companies announcing layoffs in August 2024 extends beyond the tech giants:

  • Infineon: The German chipmaker plans to cut 1,400 jobs and relocate another 1,400 positions to countries with lower labor costs. This restructuring follows a period of weak economic momentum and excess inventory levels, which have led to downgraded revenue forecasts.

  • GoPro: The action camera manufacturer is reducing its workforce by 15%, cutting around 140 employees as part of a restructuring effort aimed at lowering operating expenses by $50 million in the 2024 fiscal year.

  • Dell Technologies: Dell is reportedly reorganizing its sales teams and may have laid off about 12,500 employees, or 10% of its global workforce, though this has not been officially confirmed. The company aims to become leaner and more focused on AI-driven growth opportunities.

  • ReshaMandi: The Bengaluru-based fabric startup has laid off its entire workforce, according to sources. The company has been struggling with operational costs, including salaries, and has faced liquidity issues.

  • Brave: The privacy-focused web browser and search startup Brave has cut 27 employees, representing a 14% reduction in its workforce. This follows an earlier reduction of 9% in October 2023, reflecting ongoing financial pressures.

  • ShareChat: Another Bengaluru-based company, ShareChat, has laid off 30-40 employees, or about 5% of its workforce, following a bi-annual performance review.

A Broader Industry Trend

The layoffs in August 2024 are part of a broader trend affecting the tech industry over the past two years. In 2023, over 1,150 tech companies fired more than 260,000 employees, according to data from Layoffs.fyi. Major companies like Amazon, Microsoft, Meta, and SAP have all announced significant job cuts as they navigate economic uncertainty and market volatility.

As of the end of July 2024, over 136,000 tech workers had been laid off by 422 companies. This trend continued into August, with more than 27,000 additional jobs cut. The reasons for these layoffs vary, from disappointing earnings and economic challenges to strategic shifts in focus areas like AI and cybersecurity.

What’s Next for the Tech Industry?

While many employees are concerned about the layoffs, the tech industry is going through a major transformation at this point. Businesses are reorganizing to become more streamlined and targeted to better position themselves for expansion into high-potential industries like cloud computing, artificial intelligence, and cybersecurity.

These modifications also highlight the tech industry’s turbulence and the difficulties businesses have in a quickly changing business environment. As we move forward, it remains to be seen how these strategies will play out and whether they can help businesses in restoring stability and achieving sustainable development.

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