Mass layoffs hit tech industry: Over 27,000 jobs cut as Intel, Cisco, IBM, and Apple slash workforce
Tech companies continued to cut jobs at a rapid pace in August 2024. More than 27,000 workers in the industry lost their jobs as over 40 companies, including big names like Intel, IBM, and Cisco, as well as numerous smaller startups, announced layoffs. To date, more than 136,000 tech workers have been laid off by 422 companies in 2024, indicating significant upheaval in the sector.
Intel is undergoing one of the most challenging periods in its history, announcing 15,000 job cuts, which represents over 15% of its workforce. These layoffs are part of a $10 billion spending reduction plan for 2025, spurred by a disappointing second-quarter earnings report and outlook. Annual revenues for the company fell by $24 billion between 2020 and 2023, despite a 10% increase in its workforce during the same time frame. CEO Pat Gelsinger stated, "Intel’s revenue growth shortfall is attributed to high costs and low margins, despite our leadership in the CPU chip revolution 25 years ago."
Cisco Systems
Cisco Systems has also announced it is laying off around 6,000 employees, or about 7% of its global workforce, as it shifts its focus to high-growth areas such as AI and cybersecurity. This is the company's second major round of job cuts this year. CEO Chuck Robbins remains hopeful about the future, noting efforts to pivot toward emerging technologies. "Cisco is optimistic about rebounding demand for our networking equipment," he said. The company is restructuring to capitalize on these technologies and has committed $1 billion to investing in AI startups. Additionally, Cisco recently acquired cybersecurity firm Splunk for $28 billion. As part of the restructuring, Cisco plans to consolidate its networking, security, and collaboration departments into a single
IBM
IBM has decided to discontinue its research and development operations in China, leading to over 1,000 layoffs. Chinese media outlet Yicai reported on the situation, which stems from a decline in demand for IT hardware and difficulties in expanding within the Chinese market. IBM pledged that despite these changes, customer support in China will remain unaffected. "IBM will now prioritize serving private enterprises and select multinationals within the Chinese market," the company affirmed.
Infineon
Infineon, a German chipmaker, is also making significant cuts, with plans to reduce 1,400 jobs and relocate another 1,400 to countries with lower labor costs. CEO Jochen Hanebeck explained these measures were necessary due to third-quarter revenue falling short of expectations. "The slow recovery in target markets is due to prolonged weak economic momentum and excess inventory levels," he said, leading to a downgraded forecast for the third time in recent months.
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