Nearly 1.5 lakh employees in tech lost jobs in 2024; Intel, Tesla, Microsoft among hardest hit
By Shweta Kumari | First Published Dec 2, 2024, 2:10 PM ISTIn 2024, nearly 150,000 tech employees lost their jobs as major companies across the industry faced significant restructuring.
In 2024, nearly 150,000 tech employees lost their jobs as major companies across the industry faced significant restructuring. From renowned giants like Tesla and Intel to Microsoft, Cisco, and even Byju’s, businesses are slashing their workforces at an alarming rate to reduce costs, adapt to shifting market conditions, and streamline operations.
Intel job cuts
Intel announced it will cut a staggering 15,000 jobs — over 15% of its workforce — to meet its $10 billion cost reduction target by 2025. As part of its strategic overhaul, the tech titan is drastically scaling back R&D and marketing expenditures, cutting capital investments by more than 20%, and eliminating non-essential work. The company is also reviewing ongoing projects and equipment to ensure maximum efficiency. Intel’s struggle to regain stability mirrors a broader trend across the tech sector.
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Tesla
Tesla’s CEO, Elon Musk, has taken an aggressive stance toward cost-cutting, laying off more than 20,000 employees in multiple rounds. The first round saw at least 14,000 employees let go, followed by a second wave that included senior executives and most of Tesla’s Supercharging team. Musk's email to executives underlined the company's relentless focus on maintaining only the “excellent, necessary, and trustworthy” staff. Industry reports suggest that Tesla's total headcount could be reduced by up to 20%, a move aimed at streamlining operations and securing Tesla's position in a competitive market.
Cisco and SAP
Cisco Systems and SAP are also undergoing major transformations, shedding thousands of positions. Cisco, a networking giant, eliminated 10,000 jobs in two rounds, reducing its workforce by nearly 12%. CEO Chuck Robbins highlighted that the company is responding to a "more normalized demand environment," as it shifts its focus to high-growth sectors such as AI and cybersecurity. Meanwhile, SAP announced the elimination of 8,000 roles as part of a restructuring plan aimed at maintaining organizational stability.
Uber and Dell: Navigating Challenging Market Conditions
Uber, the rideshare giant, has been forced to cut over 6,500 jobs, closing offices and scaling back its once-promising self-driving units in the face of declining demand. Dell, too, faced difficulties in 2024, cutting 6,000 employees in response to sluggish PC demand and market uncertainties. Dell has indicated that further reductions may occur as it navigates a slow rebound in the PC sector.
Bell and Xerox
Bell, the Canadian telecommunications company, conducted layoffs in an unconventional manner—via 10-minute video calls. Approximately 4,800 employees lost their jobs, representing 9% of its workforce, as the company aims to simplify its operations. Similarly, Xerox announced a sweeping restructuring plan, cutting 15% of its workforce, or over 3,000 employees, to align with its new focus on digital services and IT solutions.
Microsoft
Microsoft, in a bid to streamline its gaming division, cut over 2,500 jobs, including 1,900 roles from Activision Blizzard, Xbox, and ZeniMax. This reduction, part of a broader effort to improve cost structures and efficiency, was accompanied by high-profile leadership departures. Microsoft’s shift reflects the broader challenges faced by the gaming industry in an increasingly competitive landscape.
PayPal and Byju’s
PayPal, grappling with rising competition and profit pressures, reduced its workforce by 9%, laying off around 2,500 employees. The company emphasized that these layoffs were necessary to “right-size” its operations, ensuring profitability while still investing in growth areas. Similarly, Byju’s, the Indian ed-tech giant, laid off 2,500 employees in a bid to recover from mounting debts, continuing its restructuring efforts amid financial challenges.
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