Global Tech Layoffs Continue: Over 27,000 Jobs Cut In August As Intel, Cisco, IBM Lead The Way

At least 27,000 people lost their jobs in the month of August and major companies like Intel, Cisco, and IBM were among those making substantial cuts, The Economic Times reported.

This recent round of layoffs brings the total number of tech job losses in 2024 to over 136,000 across 422 companies. This highlights the ongoing instability within the tech sector. Intel led with one of the largest cuts, planning to reduce its workforce by 15,000 positions as part of a broader cost-reduction strategy.

Intel's Major Workforce Reduction

Intel's CEO Pat Gelsinger attributed the job cuts to high costs and low margins despite their historical leadership in CPU chip innovation. "Intel's revenue growth shortfall is attributed to high costs and low margins, despite our leadership in the CPU chip revolution 25 years ago," he stated.

Cisco Systems also announced plans to reduce its workforce by approximately 6,000 employees, which is about 7 per cent of its global staff. The company aims to focus on growth areas such as artificial intelligence and cybersecurity. CEO Chuck Robbins expressed optimism about future demand for their networking equipment.

Cisco's Strategic Shift

"Cisco is optimistic about rebounding demand for our networking equipment," said Chuck Robbins. Meanwhile, IBM is firing 1000 jobs as it withdraws its research and development operations from China. The company plans to prioritize serving private enterprises and select multinationals within the Chinese market.

In German chipmaker Infineon, the company plans to cut 1,400 jobs and relocate another 1,400 positions to lower-cost countries. CEO Jochen Hanebeck cited market challenges for these decisions. "The slow recovery in target markets is due to prolonged weak economic momentum and excess inventory levels," he explained.

Other Notable Layoffs

Other tech companies also made notable cuts: GoPro reduced its staff by 15 per cent (about 140 employees), while Apple laid off around 100 employees primarily from its services group. Dell Technologies is reportedly reorganizing sales teams amid unconfirmed rumours of substantial layoffs.

Bengaluru-based fabric startup ReshaMandi allegedly laid off its entire workforce. Brave, a web browser company, cut 27 jobs (14 per cent of its workforce). ShareChat, another social media firm based in Bengaluru, reduced its staff by 5 per cent (30-40 jobs).