Tech companies are laying off people left, right, and center for various reasons, AI being one of them.
Let’s look at five of the top companies that fired their employees in March 2024.
Ericsson:
Around 1,200 employees of Ericsson were laid off in Sweden as a result of the slowdown in demand for 5G network equipment. The layoffs are a part of a larger 2024 cost-cutting strategy that also calls for cutting facilities, simplifying procedures, and lowering consultant costs.
Ericsson stated that they anticipated a difficult mobile networks market with additional volume declines as consumers continue to be frugal with their spending. In an effort to save expenses, Ericsson fired 8,500 employees worldwide last year, bringing its staff down by 8%.
By the end of 2023, the corporation employed close to 100,000 people worldwide.
Dell Technologies
As part of more extensive cost-cutting initiatives, which also included restricting external hiring and rearranging staff, Dell Technologies decreased its personnel. As of February 2, Dell employed approximately 120,000 people, compared to over 126,000 a year earlier.
An 11% decline in Q4 revenue was attributed to sluggish demand for Dell’s computers. Although Dell is cautious about short-term issues and growing input costs, the company expects its client solutions unit, which houses PCs, to generate sales this year.
The layoffs occur while Dell Technologies is going through a phase of reorganization and restructuring.
Apple:
Layoffs resulted from Apple ceasing internal efforts to create microLED displays for a potential future Apple Watch model. Although the microLED displays were too complicated and costly to explore further, they offered brighter and more colorful images.
Apple reconfigured its teams responsible for developing displays and let go of a number of dozen workers in Asia and the US. While some impacted employees might be given internal promotions, others might be let go and receive severance pay.
With the shutdown of the Apple Car business, this action signals the conclusion of yet another expensive R&D project.
IBM:
In a quick meeting, IBM’s chief communications officer notified marketing and communications division staff members of upcoming layoffs. The layoffs are part of IBM’s most recent “workforce rebalancing” initiatives, which come after the company revealed intentions in August of last year to replace some 8,000 jobs with AI tech.
IBM projects its global headcount to be around the same as it was at the start of 2024. The corporation wants to stay competitive by optimizing operations through AI-driven efficiencies. The layoffs are a result of IBM’s continuous attempts to restructure in response to shifting market conditions and advances in technology.
