Tech Industry Sees Layoffs Surge To 27,000 In August, Highest Since January; Here Are The Details

The surge in layoffs is primarily attributed to substantial reductions at prominent industry leaders like Intel and Cisco, which contributed significantly to the overall increase in job losses

The tech industry experienced a major increase in layoffs in August 2024, reaching its highest level of job cuts since January of this year. During this period, a whopping 27,065 employees were fired from 44 different companies. This represents a notable rise compared to July, when 39 companies collectively laid off 9,051 workers, according to the layoff tracking website layoffs,fyi.

The surge in layoffs is primarily attributed to substantial reductions at prominent industry leaders like Intel and Cisco, which contributed significantly to the overall increase in job losses.

Intel Layoffs

Intel spearheaded the wave of layoffs with an announcement of 15,000 job cuts, equating to roughly 15 per cent of its workforce, as part of a broader cost-saving strategy. In a communication to employees, Intel CEO Pat Gelsinger outlined the company’s goal to save $10 billion in cost savings by 2025. This decision is driven by a decline in profits and a challenging financial forecast for the latter half of the year. Gelsinger stressed the need for Intel to become a "leaner, simpler, and more agile" organisation, focusing on reducing operational costs, streamlining its portfolio, and cutting down on complexity.

Cisco Layoffs

Cisco also announced significant layoffs in August, reducing its workforce by 5,900, representing about 7 per cent of its total staff. This move marks Cisco's second round of layoffs in 2024, following an earlier reduction of 4,000 positions earlier in the year. The layoffs are part of Cisco's strategic shift towards investing in high-growth areas within technology, particularly artificial intelligence and cybersecurity.

Infineon Layoffs

German semiconductor manufacturer Infineon also announced plans to eliminate 1,400 jobs globally and relocate an additional 1,400 positions to countries with lower labour costs. The company indicated that several hundred of these job cuts would affect its plant in Germany. 

IBM Layoffs

This month, IBM announced the closure of its research and development operations in China, a move expected to impact over 1,000 jobs. The US-based tech giant has been grappling with decreased demand for its hardware and difficulties in expanding within the Chinese market.