.png){kind=logo}
The technology sector, in August 2024, has been facing an increased surge in layoffs. About 44 companies announced 27,065 job cuts.
The increase in layoffs, as noted, is upward trending compared to July which saw the announcement of 9,051 job cuts by 39 firms. Key drivers in the increase of job cuts in the technological sector are major players in the market such as Intel and Cisco as reported by Times Now News.
Intel announced it will be laying off 15,000 staff, that is 15% of its workforce, as a part of a plan to cut $10 billion by 2025. Intel CEO Pat Gelsinger said that the company should be “leaner, simpler, and more agile” now that the profits have shrunk and the financial outlook is bad. Furthermore, the CEO noted that the company wants to reach $10 billion in cost savings by 2025.
Cisco also was hit badly by the current economic volatility and market uncertainties, as it fired 5,900 employees, or about 7% of its workforce. This is the second time in 2024 that Cisco has laid off workers, the first time was 4,000 layoffs in the first quarter of 2024. Cisco's layoff announcements are part of strategic positioning in high-growth areas, including artificial intelligence and cybersecurity.
Infineon, a German chipmaker announced that it would let go of 1,400 jobs as part of its saving plan. Also, it announced its relocation plan for 1,400 job positions to low-wage countries. According to the company, this is part of the ongoing Step-Up cost-saving program.
Similarly, IBM will shut down its research and development site in China and lay off more than 1,000 people because of the falling demand and market challenges according to a report from the Economic Times.
SkipTheDishes, a Canadian online food delivery service, too has joined the bandwagon of major layoffs. 800 jobs were lost in a restructuring effort meant to position the firm for better long-term viability. These operational cuts were vital to help manage the firm's manpower better and reduce its operating cost burden.
The acceleration of layoffs foregrounds the massive continuous change in the technology industry, with companies positioning themselves for future growth in areas such as AI, cybersecurity, and other developing technologies. For laid-off workers, this time of change may be an opportunity to pick up new skills and adjust to evolving industry demands.
