Massive layoffs hit the tech industry: Intel, Cisco, IBM and Apple cut more than 27,000 jobs

Tech companies continued to cut jobs at a rapid pace in August 2024. More than 27,000 workers in the sector lost their jobs as more than 40 companies, including big names like Intel, IBM, and Cisco, as well as numerous smaller startups, announced layoffs. To date, more than 136,000 tech workers have been laid off by 422 companies in 2024, indicating significant upheaval in the sector.

Intel

Intel is going through one of the toughest periods in its history, having announced 15,000 job cuts, representing more than 15% of its workforce. The layoffs are part of a $10 billion cost-cutting plan by 2025, driven by a disappointing second-quarter earnings report and guidance. The company’s annual revenue fell $24 billion between 2020 and 2023, despite a 10% increase in its workforce over the same period. CEO Pat Gelsinger said: “Intel’s revenue growth shortfall is attributable to high costs and low margins, despite our leadership in the CPU chip revolution 25 years ago.”

Cisco Systems

Cisco Systems has also announced that it is laying off about 6,000 employees, or roughly 7% of its global workforce, as it shifts its focus to high-growth areas like AI and cybersecurity. This is the company’s second major round of job cuts this year. CEO Chuck Robbins remains hopeful about the future, highlighting efforts to pivot toward emerging technologies. “Cisco is optimistic about the recovery in demand for our networking team,” he said. The company is restructuring to capitalize on these technologies and has committed $1 billion to invest in AI startups. Additionally, Cisco recently acquired cybersecurity company Splunk for $28 billion. As part of the restructuring, Cisco plans to consolidate its networking, security and collaboration departments into a single organization.

IBM

IBM has decided to stop its research and development operations in China, resulting in more than 1,000 layoffs. Chinese media outlet Yicai reported on the situation, which is due to a decline in demand for computer hardware and difficulties in expanding in the Chinese market. IBM promised that despite these changes, customer support in China will not be affected. “IBM will now prioritize serving private companies and select multinationals within the Chinese market,” the company said.

Infineon

Infineon, a German chipmaker, is also making significant cuts, with plans to reduce 1,400 jobs and relocate another 1,400 to countries with lower labor costs. Chief Executive Jochen Hanebeck said the moves were necessary because third-quarter revenue fell short of expectations. “The slow recovery in target markets is due to prolonged weak economic momentum and excessive inventory levels,” he said, leading to a downward revision of forecasts for the third time in recent months.

GoPro

Action camera maker GoPro will cut approximately 15% of its workforce, totaling 140 employees, as part of a restructuring plan. The layoffs are intended to reduce operating expenses by $50 million from projected expenses for fiscal year 2024.

Apple

Apple has laid off about 100 employees, primarily from its services group, which includes the Apple Books app and Apple Bookstore teams, with some engineering positions affected as well. The company is redirecting resources toward AI programs, as it sees Apple Books as a lower priority. Apple News remains a focal point, however. This isn’t Apple’s first round of layoffs this year; it previously cut 600 employees from its Special Projects Group and closed a 121-person AI team in San Diego in January. At last report, Apple had 161,000 full-time equivalent employees. Apple declined to comment on the latest layoffs.

Dell Technologies

Dell Technologies is reportedly reorganizing its sales teams, including establishing a new group focused on artificial intelligence. Sales executives Bill Scannell and John Byrne mentioned in a memo that Dell aims to cut costs by streamlining management and reorganizing investments. Rumors suggest the company may have laid off around 12,500 employees, or 10% of its global workforce, but this has not been officially confirmed.

Resha Mandhi

Bengaluru-based textile startup ReshaMandi has laid off its entire workforce, according to sources cited by Entrackr. The company’s website has been down for a week, coinciding with the resignation of its auditor. “It’s all over for ReshaMandi,” said a source. “The company has been struggling to pay its liabilities and bear operational costs, including salaries, for the past few months.”

Brave

Brave, a search and web browser startup, has laid off 27 employees across multiple departments, TechCrunch has confirmed. This represents a 14% reduction from the 191 employees it had planned. Brave had previously cut 9% of its workforce by October 2023 due to cost management issues in a challenging economic environment.

ShareChat

ShareChat, a social media company also based in Bengaluru, has cut 30-40 jobs, or about 5% of its workforce, following a half-yearly performance review in August 2024.