In August 2024, the tech industry faced a wave of job cuts, with over 27,000 positions eliminated across more than 40 companies. Major players like Intel, IBM, and Cisco, alongside numerous startups, were among those reducing their workforce. This year has seen over 136,000 tech jobs lost from 422 companies, reflecting a period of significant disruption in the sector.
Intel, grappling with one of its toughest challenges yet, announced it will cut 15,000 jobs, which is more than 15% of its workforce. This move is part of a $10 billion cost-cutting plan for 2025, driven by disappointing earnings and a significant drop in annual revenue over the past few years. Despite a 10% increase in staff during this period, revenue fell by $24 billion from 2020 to 2023.
Cisco Systems revealed plans to lay off about 6,000 employees, or roughly 7% of its global workforce, as it pivots towards growth areas like AI and cybersecurity. This marks Cisco’s second major round of layoffs this year. CEO Chuck Robbins expressed optimism about the future, emphasizing the company’s shift towards emerging technologies.
IBM is discontinuing its R&D operations in China, leading to over 1,000 job cuts. This decision is due to reduced demand for IT hardware and challenges in the Chinese market. Despite these layoffs, IBM has assured that customer support in China will continue, focusing on private enterprises and select multinational clients.
