Tech industry faces massive layoffs, Over 27,000 jobs cut across major companies
This decision is part of a plan to save $10 billion by 2025 after a drop in sales.
The tech industry is currently experiencing massive layoffs, with over 27,000 workers being let go in August 2024. Well-known companies such as Intel, Cisco, and IBM, along with smaller startups, are feeling the impact of this trend. So far this year, there have been job cuts across 422 companies, highlighting the ongoing instability in the sector.
Intel is cutting its workforce by 15,000 positions which amounts to 15% of its employees. This decision is part of a plan to save $10 billion by 2025 after a drop in sales. CEO Pat Gelsinger attributed the decline to increased costs and narrow profit margins.
In a similar vein Cisco Systems plans to reduce its workforce by about 6,000 people which represents 7% of its global team. The company is redirecting its efforts towards fields like AI and cybersecurity setting aside $1 billion for AI startups and purchasing the cybersecurity company Splunk for $28 billion.
Moreover IBM is letting go of than 1,000 employees as it stops its research and development activities in China due to hardware demand and difficulties in accessing markets. Infineon, the German chip maker is not cutting 1,400 jobs but also moving a similar number to countries due to disappointing revenue and a slow rebound in its markets. GoPro, the action camera producer is downsizing its staff by around 140 people to achieve savings of $50 million in operating costs.
In a shift, towards progress Apple has let go of approximately 100 employees in its services division. Similarly Dell Technologies has downsized its workforce by about 12,500 people as part of a reorganization effort in its sales teams to focus more on intelligence. Startups are also facing cuts.
For instance ReshaMandi a Bengaluru based company has paused its operations due to difficulties in fulfilling its commitments. Similarly Brave a player in the industry has downsized its workforce, by 14%. Additionally ShareChat another firm in Bengaluru has cut its staff, by 5% after a review process. These job cuts underscore how the industry is reacting to challenges with companies modifying their strategies and personnel to cope with evolving market conditions.
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