July 2024 has been a challenging month for the tech industry, witnessing substantial layoffs across 34 companies, impacting over 8,000 professionals. This brings the total number of tech layoffs in 2024 to 124,517 employees from 384 companies globally. The extensive job cuts highlight the ongoing restructuring and financial pressures faced by many tech firms.
Intel’s Massive Workforce Reduction
Intel led the layoffs with a staggering 15,000 job cuts, representing more than 15% of its workforce. This move is part of a $10 billion cost-saving initiative aimed at 2025. CEO Pat Gelsinger attributed the layoffs to lower-than-expected revenue growth and challenges in capitalizing on AI trends. Intel plans to complete most layoffs by the end of 2024, offering voluntary retirement and departure options to eligible employees.
UKG’s Significant Downsizing
Massachusetts-based software company UKG initiated the largest layoffs of the month, cutting 2,200 jobs, approximately 14% of its workforce. The company cited the need to focus on critical growth areas to support its long-term strategy as the reason for these cuts.
Other Major Layoffs
- Microsoft laid off over 1,000 employees across its Mixed Reality and Azure ‘moonshots’ departments in June and July, affecting roles related to product and product management.
- Intuit announced the elimination of 1,800 jobs, representing about 10% of its staff, marking the second-largest layoff event in July.
- Dyson cut approximately 1,000 jobs in the UK, affecting more than a quarter of its local workforce, due to fierce competition and rapid innovation in the market.
Impact on Startups and Smaller Firms
Several startups and smaller firms also faced severe cuts and closures:
- ReshaMandi, a Bengaluru-based startup, laid off 80% of its workforce after failing to secure Series B funding.
- Koo, the Indian microblogging platform, shut down operations, laying off all employees after acquisition talks with Dailyhunt fell through.
- WayCool, a Chennai-based agritech firm, laid off over 200 employees in its third round of job cuts within a year due to funding struggles.
Additional Layoff Announcements
- PocketFM laid off approximately 200 writers for its internet FM show.
- Sony-owned Bungie cut 220 jobs due to rising development costs and economic pressures, alongside reassigning 155 employees within Sony Interactive Entertainment.
- Humble Games, an indie publisher, laid off its entire staff of 36 employees after failing to find a buyer.
Conclusion
The tech industry’s landscape is rapidly changing, with companies of all sizes facing financial challenges and restructuring. The significant layoffs in July 2024 underscore the sector’s volatility and the ongoing need for companies to adapt to market conditions. As firms navigate these turbulent times, employees and stakeholders alike brace for the impact of these sweeping changes.
