In August 2024, tech companies continued downsizing, with over 27,000 workers losing their jobs. More than 40 companies, including major players like Intel, IBM, and Cisco, as well as smaller startups, announced layoffs.
So far in 2024, 422 companies have laid off more than 136,000 workers, reflecting significant disruption in the tech industry.
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Intel
Intel is facing a challenging period, announcing the layoff of 15,000 employees, over 15% of its workforce, as part of a $10 billion cost-cutting plan for 2025. This move follows a disappointing Q2 earnings report and outlook. Intel’s annual revenue dropped by $24 billion between 2020 and 2023, despite a 10% workforce increase. CEO Pat Gelsinger cited high costs and low margins as contributing factors, despite the company’s legacy as a CPU chip pioneer.
Cisco Systems
Cisco Systems is laying off around 6,000 employees, about 7% of its workforce, as it focuses on growth areas like AI and cybersecurity. This is Cisco’s second major layoff in 2024. CEO Chuck Robbins expressed optimism about rebounding demand and highlighted a $1 billion investment in AI startups. Cisco recently acquired cybersecurity firm Splunk for $28 billion and plans to merge its networking, security, and collaboration divisions into one entity.
IBM
IBM is laying off over 1,000 employees as it ends its R&D operations in China, citing declining IT hardware demand and challenges in expanding within the Chinese market. IBM assured that customer support in China will remain intact, with the company now focusing on private enterprises and multinational clients.
Infineon
German chipmaker Infineon is cutting 1,400 jobs and relocating another 1,400 positions to lower-cost countries. CEO Jochen Hanebeck attributed these changes to disappointing Q3 revenue due to weak economic recovery and excess inventory, leading the company to downgrade its forecast for the third time this year.
GoPro
GoPro is laying off 15% of its workforce, or about 140 employees, as part of a restructuring aimed at cutting $50 million in operating expenses for fiscal 2024.
Apple
Apple has laid off around 100 employees, mostly from its services group, including teams working on the Apple Books app. The company is reallocating resources toward AI programs, though Apple News remains a priority. This follows earlier layoffs this year, including 600 employees from the Special Projects Group and a 121-person AI team.
Dell Technologies
Dell Technologies is reorganizing its sales teams, forming a new AI-focused group. Although rumors suggest about 12,500 employees, or 10% of Dell’s global workforce, have been laid off, the company has not confirmed these figures.
