In August 2024, the technology industry experienced a significant increase in Layoffswhich is the largest number of job cuts since January. A total of 27,065 employees were laid off at 44 companies, a marked increase compared to July, when 39 companies laid off 9,051 workers. The rise in layoffs is largely attributed to major staff reductions at industry giants such as Intel and Cisco.
Intel led the wave with the announcement of 15,000 job cuts — roughly 15% of its workforce — as part of a broader cost-savings initiative. In a note to employees, Intel CEO Pat Gelsinger explained that the company aims to achieve $10 billion in cost savings by 2025. The decision comes in response to declining profits and a challenging financial outlook for the second half of the year. Gelsinger highlighted the need for Intel to become a “leaner, simpler, and more agile” company, emphasizing the importance of reducing operating costs, simplifying its portfolio, and removing complexity.
Cisco also made significant layoffs, eliminating 5,900 jobs, representing about 7% of its workforce. This marks the company’s second round of layoffs in 2024, following the termination of 4,000 employees earlier in the year. Cisco’s layoffs are part of a strategic shift toward high-growth areas in technology, particularly AI and Cybersecurity.
Other companies contributing to the August layoffs include German chipmaker Infineon, which announced 1,400 job cuts globally, along with plans to relocate another 1,400 positions to countries with lower labor costs. Infineon’s decision is part of its ongoing Step Up cost-saving program. Meanwhile, IBM revealed the closure of its R&D operation in China, which will likely affect more than 1,000 jobs, as the company battles declining demand and challenges in the Chinese market.
Canadian food delivery service SkipTheDishes also announced layoffs, eliminating 800 jobs as part of a restructuring effort aimed at ensuring long-term sustainability. The decision was driven by the need to reduce operating costs and streamline the company’s workforce.
While the layoffs are painful, they highlight the industry’s ongoing evolution as companies reposition themselves for future growth in areas such as artificial intelligence, cybersecurity and other emerging technologies. For affected workers, these changes may present opportunities to upgrade their skills and realign them with the industry’s future needs.
Disclaimer
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.