The tech industry is experiencing significant turmoil in 2024, with layoffs reaching a staggering 132,000 just eight months into the year.
Major companies like Cisco, Intel, Microsoft, and Apple are among those making substantial job cuts, reflecting broader challenges in the sector.
Key Takeaways
- Total Layoffs: Over 132,000 jobs cut in the tech sector in 2024.
- Major Companies Affected: Cisco, Intel, Microsoft, Apple, Meta, PayPal, Snap, and eBay.
- Primary Reasons: Restructuring plans, cost alignment, and underperformance in revenue growth.
Cisco and Intel Lead the Layoffs
Cisco and Intel have been at the forefront of the recent wave of layoffs. Cisco announced a restructuring plan that involves cutting 7% of its global staff, marking its second round of mass layoffs this year. In February, the company had already slashed 4,000 jobs.
Intel, on the other hand, revealed plans to cut around 15,000 employees, which constitutes 15% of its global workforce. Intel's CEO, Pat Gelsinger, cited the need to align the company's cost structure with its new operating model and address financial challenges as the primary reasons for the layoffs.
Impact on Hardware Companies
The layoffs have hit hardware companies particularly hard. In 2022, there were only 3,605 layoffs in hardware companies, but this number surged to 24,459 in 2023. Less than eight months into 2024, hardware companies have already made 24,706 layoffs, indicating a troubling trend.
Other Major Companies Affected
Several other major tech companies have also announced layoffs this year:
- Microsoft: Planned to cut up to 1,500 workers from its Azure cloud operations.
- Apple: Laid off 614 employees following the closure of its connected car and smartwatch projects.
- Meta: Cut 50 vice president positions, following a broader wave of layoffs in the previous years.
- PayPal, Snap, and eBay: Also among the companies making significant job cuts.
Future Outlook
According to Layoffs.fyi, a tracker monitoring job cuts in the tech sector, the industry is on track to exceed the 165,269 job cuts seen in 2022, although it may fall short of the 264,220 layoffs recorded last year. The financial outlook for the second half of 2024 remains challenging, and companies are taking bold actions to address these difficulties.
The tech industry is undergoing a period of significant restructuring and cost-cutting, with major players making tough decisions to navigate the current economic landscape. As the year progresses, it remains to be seen how these changes will impact the sector's long-term growth and innovation.
Sources
- Tech Layoffs Reach 132,000 8 Months Into 2024, PYMNTS.com.
