Tech layoffs: Over 27,000 jobs lost in August 2024; Intel, Cisco and IBM lead the wave

Tech layoffs 2024: August 2024 marked another wave of tech layoffs, with over 27,000 workers losing their jobs. Major players like Intel, Cisco, and IBM made significant cuts. More than 40 companies, including industry giants and startups alike, announced layoffs, per The Economic Times's report.

This brings the total number of tech job losses in 2024 to over 136,000 across 422 companies, as per the ET report, underscoring the industry's ongoing volatility.

Intel, the semiconductor leader, unveiled one of the most substantial cuts, planning to eliminate 15,000 jobs as part of a broader cost-reduction strategy. CEO Pat Gelsinger explained, “Intel's revenue growth shortfall is attributed to high costs and low margins, despite our leadership in the CPU chip revolution 25 years ago.”

Networking giant Cisco Systems announced plans to reduce its workforce by approximately 6,000, about 7 per cent of its global staff. The company aims to refocus on growth areas like artificial intelligence and cybersecurity. CEO Chuck Robbins expressed optimism, stating, “Cisco is optimistic about rebounding demand for our networking equipment.”

IBM is withdrawing its research and development operations from China, resulting in over 1,000 job losses. The company affirmed, "IBM will now prioritize serving private enterprises and select multinationals within the Chinese market,” as ET quoted.

German chipmaker Infineon plans to cut 1,400 jobs and relocate another 1,400 to lower-cost countries. CEO Jochen Hanebeck cited market challenges, saying, "The slow recovery in target markets is due to prolonged weak economic momentum and excess inventory levels,” as quoted by ET.

Other tech companies making notable cuts include:

GoPro: Reducing staff by 15 per cent (about 140 employees).

Apple: Laying off around 100 employees, primarily from its services group.

Dell Technologies is reportedly reorganizing sales teams, with unconfirmed rumours of substantial layoffs.

ReshaMandi: A Bengaluru-based fabric startup is allegedly laying off its entire workforce.

Brave: The web browser company is cutting 27 jobs (14 per cent of its workforce).

ShareChat: A social media firm in Bengaluru reducing staff by 5 per cent (30-40 jobs).