The tech industry’s struggles are not limited to 2024. 2023 also saw massive layoffs, with 1,186 tech companies shedding approximately 262,682 jobs, a significant increase compared to the 164,969 layoffs in 2022. This year, the trend continues, with several major tech companies announcing substantial job cuts.
Intel, one of the most significant contributors to this staggering number, plans to lay off over 15,000 employees, representing more than 15% of its workforce. CEO Pat Gelsinger cited disappointing revenue growth and difficulties in leveraging AI trends as the primary reasons behind this decision. The company aims to implement a $10 billion cost-reduction strategy by 2025.
Dyson, the UK-based appliance maker, has also joined the ranks of companies implementing layoffs. They plan to reduce their workforce by approximately 1,000 positions in the UK, affecting over 25% of their domestic staff. CEO Hanno Kirner attributed this decision to intense competition and rapid technological advancements.
Microsoft has also been affected by the ongoing trend, with over 1,000 employees losing their jobs in the mixed reality and Azure divisions over the past two months. Although the company has not officially acknowledged these layoffs, affected employees have reported that the cuts primarily targeted product and product management roles.
UKG, a software firm headquartered in Massachusetts, announced a 14% reduction in its workforce, equivalent to approximately 2,200 employees out of a total of 15,882. The company stated that the layoffs are focused on concentrating on key growth areas to strengthen its long-term strategic goals.
Intuit Inc, a financial management software company based in California, has revealed plans to cut 1,800 positions, representing roughly 10% of its workforce. This layoff represents the second-largest reduction in the tech industry for July.
Other notable layoffs include Kaspersky’s decision to terminate all employees in the US due to a government ban on its software, Koo’s shutdown following failed acquisition negotiations, and significant job cuts at Unacademy, WayCool, PocketFM, Bungie, and Humble Games.
As the year progresses, it remains to be seen whether the tech industry will be able to rebound from these challenging times. However, the sheer scale of the layoffs in 2024 suggests that the sector is facing significant headwinds that will require strategic planning and adaptation to overcome.
