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The tech industry continues to grapple with a wave of layoffs, with August 2024 seeing over 27,000 employees from more than 40 companies losing their jobs. This follows a trend of widespread job cuts throughout the year, bringing the total number of tech workers laid off to over 136,000 across 422 companies. Major tech giants like Intel, IBM, and Cisco have all been forced to make significant cuts, highlighting the challenges facing the industry.
Intel, the leading chip manufacturer, announced plans to lay off 15,000 employees, representing over 15% of its workforce. This drastic measure is part of a $10 billion cost-cutting plan for 2025, aimed at addressing the company's disappointing financial performance. Intel's annual revenue has declined by $24 billion since 2020, prompting CEO Pat Gelsinger to attribute the shortfall to high costs and low margins, despite the company's historical dominance in the CPU chip market.
Cisco Systems, a major player in networking equipment, has also announced its second round of layoffs this year, cutting around 6,000 jobs, or 7% of its global workforce. This move reflects the company's strategic shift towards artificial intelligence (AI) and cybersecurity, areas deemed crucial for future growth. CEO Chuck Robbins expressed optimism about rebounding demand for Cisco's networking equipment, suggesting that the layoffs are part of a necessary restructuring to adapt to evolving industry trends.
IBM, a technology giant with a long history in research and development, has made the difficult decision to close its R&D operations in China. This move resulted in the loss of over 1,000 jobs as the company refocuses its efforts on serving private enterprises and select multinational clients within the Chinese market. This decision highlights the complexities of operating in a dynamic and competitive global market.
Beyond the major players, smaller tech companies are also facing the impact of the economic downturn. German chipmaker Infineon announced the layoff of 1,400 employees and plans to relocate another 1,400 jobs to countries with lower labor costs. CEO Jochen Hanebeck cited the slow recovery in target markets, attributing it to prolonged weak economic momentum and excess inventory levels.
Action camera manufacturer GoPro is shedding approximately 140 employees, representing 15% of its workforce. This layoff is part of a cost-cutting initiative aimed at reducing operating expenses by $50 million. The company is seeking to streamline operations and improve profitability in a competitive market.
Even tech giants like Apple have not been immune to the layoff trend. The company laid off around 100 employees from its services group, which includes teams responsible for the Apple Books app and Apple Bookstore. Earlier this year, Apple cut 600 jobs from its Special Projects Group and closed a 121-person AI team in San Diego, demonstrating the company's willingness to make difficult decisions to optimize its resources.
Dell Technologies has been reported to have laid off around 12,500 employees, representing 10% of its global workforce. However, the company has not yet confirmed these layoffs. This highlights the uncertainty surrounding the future of the tech industry, with companies constantly adapting to changing economic conditions and market dynamics.
Source: Tech Industry Hit By Mass Layoffs: Intel, Cisco, IBM, And Apple Cut Over 27,000 Jobs