The wave of layoffs continues to surge, with August witnessing the highest number of job cuts since January 2024. A total of 27,065 employees were laid off across 44 companies, reflecting a sharp increase compared to July, when 39 companies laid off 9,051 staff, according to data from layoffs.fyi. The surge is primarily driven by significant job cuts from tech giants like Intel and Cisco.
Intel Slashes 15,000 Jobs in Cost-Cutting Move
Intel, one of the largest semiconductor companies, made headlines on August 1 when CEO Pat Gelsinger announced plans to cut around 15,000 jobs, representing 15% of its workforce. This decision comes as part of Intel’s strategy to deliver $10 billion in cost savings by 2025. Gelsinger acknowledged the painful nature of these layoffs but emphasized the necessity of bold actions to address high costs and low margins, especially given the tougher-than-expected financial outlook for the second half of 2024.
Cisco’s Second Round of Layoffs Targets 7% of Workforce
On August 14, Cisco Systems announced its second round of layoffs for the year, affecting around 5,900 employees, or 7% of its workforce. The cuts are part of Cisco’s ongoing strategic shift toward rapidly growing areas in technology, such as AI and cybersecurity. This follows an earlier round of layoffs in February, where the company slashed 4,000 jobs.
Infineon, IBM, and SkipTheDishes Join the Layoff Trend
German chipmaker Infineon announced on August 5 that it would cut 1,400 jobs globally, with an additional 1,400 positions being relocated to countries with lower labor costs. The company’s decision is part of its “Step Up” cost-saving program, aimed at addressing the challenges of declining revenue and rising operational costs.
IBM also joined the list, with plans to close its China R&D operations, likely affecting over 1,000 jobs. The move comes in response to declining demand for IBM’s hardware and challenges in growth markets like China. Despite the cuts, IBM assured that its ability to support clients in the Greater China region would not be impacted.
Canadian online food delivery service SkipTheDishes and its parent company Just Eat Takeaway.com also announced layoffs, cutting around 800 jobs, including 100 Canadian market employees and 700 operations employees. CEO Paul Burns stated that the restructuring was necessary for the company’s sustainability in a challenging market.
What’s Driving the Rise in Layoffs?
The significant rise in layoffs can be attributed to the aggressive cost-cutting strategies being adopted by companies to navigate the challenging financial environment. Intel’s massive job cuts underscore the urgency of these measures, driven by declining profits and a bleak financial outlook for the latter half of 2024. Similarly, Cisco’s layoffs reflect a strategic realignment toward high-growth areas like AI and cybersecurity, necessitating a shift in resources.
Conclusion
August’s surge in layoffs highlights the broader economic challenges and strategic shifts facing companies in various industries. As firms like Intel, Cisco, Infineon, IBM, and SkipTheDishes continue to realign their operations, the trend of job cuts may persist as businesses adapt to evolving market conditions.
