Over 27,000 tech employees loses job in August 2024: Intel, Cisco, IBM, Apple and others cuts thousands of jobs – Times of India

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 big tech companies like Intel, IBM, Cisco, and even smaller startups, comprising a total of over 40 companies announced layoffs. So far in 2024, over 136,000 tech workers have been laid off by 422 companies.

Intel announces 15,000 job cuts as chipmaker goes through toughest time in its history

Intel announced it would lay off 15,000 employees, representing over 15% of its workforce, in a memo to employees on Thursday.The layoffs are part of a $10 billion spending reduction plan for 2025, following a dismal second-quarter earnings report and outlook.
CEO Pat Gelsinger blamed Intel’s revenue growth shortfall on high costs and low margins, despite its leadership in the CPU chip revolution 25 years ago. Annual revenues fell $24 billion between 2020 and 2023, while its workforce grew 10% during the same period.

Cisco to layoff around 6,000 employees in its second round of job cuts

Cisco Systems is laying off about 7% of its global workforce, affecting around 6,000 employees, as it shifts focus to high-growth areas like AI and cybersecurity. This marks Cisco’s second major round of job cuts this year.
CEO Chuck Robbins remains optimistic about rebounding demand for Cisco’s networking equipment. Cisco is pivoting to capitalise on emerging technologies, having committed $1 billion to invest in AI startups and recently acquired cybersecurity firm Splunk for $28 billion.
As part of the restructuring, Cisco plans to combine its networking, security, and collaboration departments into a single organisation.

IBM shuts down R&D operations in China, over 1,000 employees laid off

IBM is discontinuing its research and development operations in China, resulting in the displacement of over 1,000 employees as reported by Chinese media outlet Yicai.
IBM has been grappling with a decline in demand for IT hardware and difficulties in expanding its presence in China, a market that once held significant potential and provided a robust business base beyond the United States. Despite these challenges, IBM has affirmed that these changes will not compromise its ability to support customers in China. The company will now prioritise serving private enterprises and select multinationals within the Chinese market.

German chipmaker Infineon to cut 1,400 jobs, another 1,400 employees to be relocated

Infineon, a German chipmaker, will cut 1,400 jobs and relocate another 1,400 to countries with lower labour costs, its CEO Jochen Hanebeck said. The company’s third-quarter revenue fell short of expectations, prompting a downgrade of its full-year forecast for the third time in months. Hanebeck attributed the slow recovery in target markets to prolonged weak economic momentum and excess inventory levels.

Action camera manufacturer GoPro lays off 15% of its staff, 140 employees to loose their jobs

Popular action camera manufacturer GoPro has announced a restructuring plan that involves reducing its workforce and eliminating approximately 15% of its current headcount, about 14o employees. The layoffs are expected to be completed by the end of 2024, reducing operating expenses by $50 million from projected fiscal 2024 expenses.

Apple cuts 100 jobs in its services group

Apple has laid off about 100 employees in its services group, primarily impacting the Apple Books app and Apple Bookstore teams. Engineering roles were also eliminated. The layoffs come as Apple shifts resources towards AI programs, viewing Apple Books as less of a priority. Despite the cuts, Apple News remains a key focus.
Layoffs are uncommon at Apple, but this is not the first round. Earlier this year, Apple laid off about 600 employees in its Special Projects Group due to project closures. In January, Apple shuttered a 121-person AI team in San Diego. As of its latest filing, Apple reported 161,000 full-time equivalent employees. Apple declined to comment on the layoffs.

Dell cuts unspecified jobs in sales teams

Dell Technologies is reorganising its sales teams, including a new AI-focused group. Sales executives Bill Scannell and John Byrne wrote in a memo that Dell is becoming leaner by streamlining management and reprioritizing investments. Rumours are that the company laid off about 12,500 employees, or 10% of its worldwide workforce, but the same could not be confirmed.

Bengaluru-based fabric startup, Reshmandi laid off its entire staff

ReshaMandi has reportedly terminated its entire workforce, as reported by sources to Entrackr. The firm’s website has been inaccessible for a week, coinciding with the resignation of its auditor. “It’s all over for ReshaMandi,” a source told the outlet. “The company is struggling to pay liabilities and bear operational costs including salaries for the past several months.”

Web browser startup Brave cuts 27 jobs

Brave, a web browser and search startup, has laid off 27 employees across departments, as confirmed by TechCrunch. PitchBook estimates Brave has around 191 employees, representing a 14% reduction. These layoffs follow a similar move in October 2023, when Brave cut 9% of its workforce due to cost management in a challenging economic environment.

ShareChat cuts 5% jobs

ShareChat, a Bengaluru-based social media company, laid off about 5% of its workforce, about 30-40 employees, after a bi-annual performance review in the month of August 2024.