In 2024, there are no indications that the tech industry’s layoff wave will decrease. In 2022 and 2023, IT companies made large personnel cutbacks; this year, the industry is still experiencing both important and minor job losses. 422 IT organizations had let go of 136,782 people as of August 30, 2024, according to independent layoff tracker Layoffs.fyi.
Not only have large major companies like Apple, Microsoft, and Google continued to cut staff this year, despite declaring a massive layoff last year, but small businesses have also been affected. Significant labor cutbacks are being implemented by these organizations, which is in line with industry trends driven by cost-cutting initiatives, reorganization plans, and deliberate moves towards cutting-edge technology like artificial intelligence (AI).
Let’s examine in-depth the businesses that declared employee layoffs this month as August 2024 draws to a close:
The most recent major tech company to disclose job losses is Apple, which is said to be letting go of about 100 workers in its digital services division. It is anticipated that the layoffs will affect employees in the company’s News and Books departments, indicating possible changes to Apple’s approach to digital media. Following the end of a long electric vehicle (EV) project, Apple laid off 614 workers in California earlier in May.
GoPro
The action camera company GoPro, which has announced goals to cut staff overall by about 15% by the end of 2024, is well-known for its products. According to reports, the company is restructuring in an attempt to reduce expenses and concentrate on its core business against difficult market conditions, affecting approximately 139 people.
Sonos
Sonos, an audio technology business, announced another wave of layoffs that will eliminate 100 positions, or around 6% of its workforce. Prior to this, Sonos cut 7% of its workforce in 2023 as part of continuous efforts to adjust to shifting market circumstances and maximize operational effectiveness.
Cisco
Another well-known company, networking behemoth Cisco, is allegedly preparing to fire thousands of employees in another round of layoffs this year. As part of a larger, changing effort to reshape its business to better match present market conditions and future growth potential, the corporation already let go of over 4,000 employees in February 2024.
Dell
As part of its intention to become “leaner” and establish a new sales unit centered on AI goods and services, Dell is also among the IT businesses making cuts this month. Although the precise number of workers affected by the layoffs has not been made public, an internal memo indicates a major reorganization as the business changes course to take advantage of the expanding market for AI solutions.
Intel
This month, chipmaker Intel made one of the biggest layoff announcements of the year, laying off 15,000 workers, or 15% of its entire staff. According to CEO Pat Gelsinger, the company needed to better prepare itself for upcoming technology developments like artificial intelligence (AI) and slower-than-anticipated sales growth, which is why layoffs were necessary.
Microsoft
In the meantime, Microsoft has carried out its 2024 layoff trend, hitting several divisions with several waves of employment reductions. The corporation let go of 2,000 workers from its gaming division in January after acquiring Activision Blizzard. Later layoffs in June and July were directed at product and program management positions, Microsoft’s HoloLens mixed reality division, and its cloud business Azure. Microsoft has not made public the precise number of positions lost in recent rounds, but the impact has been felt worldwide, suggesting a major reorganization of the company.
Goggle
Another significant participant in the layoff trend this year has been Google parent company Alphabet, which has let go of 630 employees from a variety of departments, including voice assistants, hardware teams (Pixel, Nest, and Fitbit), advertising sales, and augmented reality. These layoffs are a part of attempts to “simplify operations and drive velocity,” according to CEO Sundar Pichai. Approximately 200 workers from Alphabet’s key teams were let go in April, including a number of senior executives.
Why are there layoffs happening?
The ongoing wave of layoffs at these large tech businesses is reflective of a larger trend in the sector, which is being fueled by a mix of cost-cutting initiatives, strategic moves toward artificial intelligence, and the need to adapt to after the pandemic economic conditions. Many businesses that overhired during the epidemic are now forced to cut employees in an effort to strike a balance between expenses and potential future growth. In order to effectively compete in this emerging industry, many businesses have also been forced to reallocate resources and restructure their operations due to the rapid rise of AI as a revolutionary technology.
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