Tech Layoffs Surge in August: 27,000 Jobs Cut as Companies Shift Focus to AI and Cost-Saving Measures

Layoffs in the tech industry reached 27,065 in August 2024 across 44 firms; this figure was the highest in a month since January. This increase is attributable to massive termination by Intel and Cisco systems among other companies. Tackling financial issues, Intel announced the elimination of 15,000 workers or 15 % of the company’s employees. This is a part of a more extensive cost-saving initiative that is aimed at achieving $10 billion in cuts before 2025 in response to a grim second half of 2024 financial situation for the company.

Cisco Systems also played in a role in increasing the number of layoffs since laying off approximately 5,900 employees this year, the second time the company has done so. This move helps the company to streamline its efforts in constantly developing markets, such as artificial intelligence and cybersecurity. This is after another round in February 2024 when the company let go of 4,000 employees through layoffs.

Another few companies that discharged their employees in August are Infineon Technologies, IBM and SkipTheDishes. Thus, the German chipmaker Infineon revealed plans on layoffs as many as 1,400 employees worldwide and the transfer of an additional 1,400 occupations to the low-cost nations. This is under the Step Up cost reduction strategy at Infineon to counter slow demand and other difficulties in operation.

IBM shut down its China R&D centre, thus impacting more than a thousand employees. This is due to continued weakness in IBM’s hardware business and problems in growth markets such as China. However, IBM was keen to point out that this change would not compromise the company’s services to clients across the Greater China region.

In the same country, the organisation of online food delivery SkipTheDishes and its mother company discharged approximately 800 workers due to the reorganisation process for further economical stability.

The frequency of layoffs witnessed in tech companies is applicable to market turmoil, slow demand, and the need to concentrate on growth verticals such as Artificial Intelligence and cybersecurity. However, it is crucial to note that these layoffs afford the chance to retrain and update oneself and career goals in relation to the changing trends, as more firms turn toward new technologies and systems.