The IT tech industry is grappling with significant workforce reductions in 2024, with over 130,000 IT employees losing their jobs so far this year. This trend continues from the massive layoffs that began in early 2023, as the sector undergoes ongoing restructuring and downsizing. According to Layoffs.fyi, a staggering 130,482 employees across 397 companies have faced layoffs this year, highlighting the pervasive nature of the current job cuts.
In recent developments, Cisco is bracing for another substantial round of job cuts. Reuters reports that the company is considering layoffs that may surpass the 4,000 positions it eliminated earlier this year. This strategy is part of Cisco’s broader shift towards high-growth areas like cybersecurity and artificial intelligence (AI). Despite this pivot, the company is grappling with slow demand and ongoing supply chain issues in its traditional networking equipment sector.
Similarly, Intel disclosed plans in July to significantly reduce its workforce, aiming to lay off over 15,000 employees—more than 15 percent of its total workforce. This move is part of a $10 billion cost-reduction initiative designed to ensure financial stability by 2025. Intel CEO Pat Gelsinger attributed these layoffs to disappointing revenue growth and challenges in capitalizing on emerging AI trends.
Microsoft has also quietly reduced its workforce by approximately 1,000 employees in the past two months.
The Tech Layoffs primarily affected its mixed reality and Azure ‘moonshots’ divisions. While Microsoft has not officially confirmed these cuts, affected employees have reported them on social media, indicating a focus on product and product management roles.
Software company UKG is also reducing its workforce, announcing that it will lay off 2,200 employees, which represents 14 percent of its total staff. This decision aligns with UKG’s strategy to concentrate on key growth areas to support its long-term strategic objectives.
In addition, Dyson, the appliance maker, has revealed plans to cut 1,000 positions, impacting over 25 percent of its UK-based employees. This decision is driven by intense competition and rapid technological advancements affecting the company’s operations.
Russian cybersecurity firm Kaspersky has concluded its US operations, leading to layoffs of fewer than 50 employees.
The impact of these layoffs extends beyond the tech industry. Indian companies are also feeling the strain, with Unacademy reducing its workforce by 250 employees and WayCool laying off 200. The trend of workforce reductions extends beyond the tech sector; Reliance Industries in India has announced 42,000 job cuts as part of a cost-efficiency drive, which has decreased its total workforce from 389,000 in FY 2022-23 to 347,000 in FY 2023-24.
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