Apple, Intel, Cisco, IBM and others cut jobs: Over 27,000 tech employees loses employment in August 2024
August 2024 saw a wave of tech layoffs, with over 40 companies, including giants like Intel, Cisco, and IBM, letting go of over 27,000 employees. The cuts come as companies grapple with declining sales, economic uncertainty, and a shift towards AI and cybersecurity.
FollowTech companies continued to cut jobs at a rapid pace in August 2024. Large computer corporations including Intel, IBM, Cisco, and even smaller startups—a total of over 40 organisations—announced layoffs, resulting in the loss of over 27,000 jobs in the industry. 422 corporations have fired off almost 136,000 IT professionals so far in 2024.
Intel announces 15,000 job cuts
Intel announced it would lay off 15,000 employees, representing over 15% of its workforce, in a memo to employees on Thursday. The goal to reduce expenditure by $10 billion by 2025 includes the layoffs in response to a disappointing earnings report and prognosis for the second quarter. CEO Pat Gelsinger attributed expensive expenses and slim profit margins for Intel's lacklustre sales growth, even though the company led the CPU chip revolution 25 years ago. Between 2020 and 2023, the company's yearly sales decreased by $24 billion, while its staff expanded by 10% in that time.
Cisco to layoff around 6,000 employees
Approximately 6,000 workers would be affected by Cisco Systems' 7% worldwide staff reduction as it refocuses on high-growth industries like cybersecurity and artificial intelligence. This is the second significant round of layoffs at Cisco this year.
Chuck Robbins, CEO of Cisco, is still upbeat about the company's networking equipment demand. Cisco is making a 180-degree turn to capitalise on cutting-edge technology. It just paid $28 billion to purchase cybersecurity company Splunk and promised $1 billion to invest in AI companies. Cisco intends to create a single entity out of its networking, security, and collaboration divisions as part of the reorganisation.
IBM shuts down R&D operations in China
IBM is discontinuing its research and development operations in China, resulting in the displacement of over 1,000 employees as reported by Chinese media outlet Yicai. IBM has been struggling to increase its footprint in China, a market that formerly held great promise and offered a strong corporate base outside of the United States, as well as the fall in demand for IT gear. IBM has stated that, in spite of these difficulties, these modifications won't affect its capacity to serve clients in China. The company's current focus will be on catering to individual businesses and a few international corporations operating in the Chinese market.
Infineon to layoff 1400 employees
According to its CEO, Jochen Hanebeck, Infineon, a German semiconductor manufacturer, would lay off 1,400 employees and transfer another 1,400 to nations with cheaper labour costs. The company's full-year prediction was downgraded for the third time in as many months due to its third-quarter sales falling short of forecasts. Hanebeck blamed high levels of excess inventories and persistently poor economic momentum for the target markets' sluggish recovery.
GoPro to layoff too
Well-known action camera maker GoPro has disclosed a reorganisation plan that calls for laying off 14,000 people, or 15% of the company's present workforce. By the end of 2024, the layoffs are anticipated to have been completed, saving $50 million in operating expenditures compared to the budgeted amount for the next fiscal year.
Apple cuts 100 jobs in its services group
About 100 workers in Apple's services division were let go, mostly affecting the teams behind the Apple Books app and Apple Bookshop. Moreover, engineering positions were abolished. Apple is making these layoffs in order to focus more of its resources on AI initiatives and lessen its emphasis for Apple Books. Apple News is still a major priority in spite of the changes.
Apple seldom has layoffs, but this is not the first time they have happened. Due to project cutbacks, Apple fired around 600 workers in its Special Projects Group earlier this year. Apple closed its 121-person AI unit in San Diego in January. Apple claimed 161,000 full-time equivalent employees as per its most recent filing. Apple remained silent over the layoffs.
ShareChat, a Bengaluru-based social media company, laid off about 5% of its workforce, about 30-40 employees, after a bi-annual performance review in the month of August 2024.
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