- August 2024 saw over 27,000 tech job losses from major firms like Intel, Cisco, and IBM.
- Intel announced 15,000 job cuts, Cisco reduced its workforce by 6,000, and IBM cut over 1,000 jobs while shifting operations from China.
- The total tech job losses in 2024 now exceed 136,000, reflecting continued sector instability.
August 2024 brought another wave of layoffs in the tech industry, with major companies like Intel, Cisco, and IBM announcing significant job cuts.
Intel is reducing its workforce by 15,000 as part of a broader strategy to address revenue and cost issues. Cisco is trimming its staff by 6,000 to better focus on growth areas such as AI and cybersecurity.
Tech Industry Turmoil: Major Layoffs Hit Intel, Cisco, and IBM in August 2024
IBM’s decision to withdraw its research and development operations from China resulted in over 1,000 job losses. Additionally, Infineon plans to cut 1,400 jobs and relocate another 1,400 positions to more cost-effective locations. These moves reflect the ongoing volatility and challenges faced by the tech sector in 2024.
Cisco Systems, known for its networking equipment, is reducing its workforce by about 6,000 employees, approximately 7% of its global staff. The company is pivoting towards growth areas like artificial intelligence and cybersecurity, indicating a strategic shift in response to evolving market demands. Cisco’s CEO remains hopeful about future demand for their products.
IBM has also made significant cuts, with over 1,000 jobs lost as the company pulls out of its research and development operations in China. The company’s new focus will be on serving private enterprises and select multinational corporations within the Chinese market, reflecting a strategic shift in its global operations.
Infineon, a German chipmaker, is cutting 1,400 jobs and relocating another 1,400 positions to lower-cost countries. The company cites slow market recovery and excess inventory levels as reasons for the layoffs, highlighting the broader challenges faced by the tech industry.
The recent wave of layoffs in the tech sector underscores the industry’s ongoing instability and the challenges companies face in adapting to market demands and cost pressures.
“Intel’s revenue growth shortfall is attributed to high costs and low margins, despite our leadership in the CPU chip revolution 25 years ago.” – Pat Gelsinger, CEO of Intel
