The technology sector is experiencing a significant surge in layoffs, with 44 companies announcing a total of 27,065 job cuts in August 2024. This increase in layoffs is a continuation of the upward trend observed in July, where 39 firms announced 9,051 job cuts. Major players in the market, including Intel and Cisco, have been hit hard by the current economic volatility and market uncertainties.
Intel, one of the leading technology companies, has announced its plan to lay off 15,000 staff, which accounts for 15% of its workforce. This move is part of Intel’s strategy to cut $10 billion by 2025. Intel CEO Pat Gelsinger emphasized the need for the company to become “leaner, simpler, and more agile” in light of shrinking profits and a challenging financial outlook. The company aims to achieve $10 billion in cost savings by 2025.
Cisco, another prominent player in the technology sector, has also been affected by the economic turbulence. The company recently fired 5,900 employees, equivalent to approximately 7% of its workforce. This marks the second round of layoffs for Cisco in 2024, following the earlier announcement of 4,000 job cuts in the first quarter. Cisco’s decision to reduce its workforce is part of a strategic positioning effort in high-growth areas such as artificial intelligence and cybersecurity.
Infineon, a German chipmaker, has joined the wave of layoffs by announcing the elimination of 1,400 jobs as part of its cost-saving plan. Additionally, the company plans to relocate 1,400 job positions to low-wage countries. This move aligns with Infineon’s ongoing Step-Up cost-saving program.
IBM, a renowned technology company, will be shutting down its research and development site in China, resulting in the layoff of over 1,000 employees. The decision is driven by falling demand and market challenges faced by the company.
Even Canadian online food delivery service SkipTheDishes has not been immune to the layoffs. In a restructuring effort aimed at improving long-term viability, the company has let go of 800 jobs. These operational cuts are crucial for managing manpower efficiently and reducing operating costs.