The wave of layoffs continues to grow, with August seeing the highest number of layoffs since January 2024. According to data from Layoffs.fyi, a total of 27,065 employees were laid off across 44 companies, a significant jump from July, when 39 companies laid off 9,051 employees. This surge is primarily due to large layoffs by tech giants such as Intel and Cisco.
Intel cuts 15,000 jobs to cut costs
Intel, one of the largest semiconductor companies, made headlines on August 1 when CEO Pat Gelsinger announced plans to cut about 15,000 jobs, which is 15% of its workforce. The decision comes as part of Intel's strategy to save $10 billion in costs by 2025. Gelsinger accepted He expressed concern over the painful nature of these layoffs, but stressed the need for bold action 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 about 5,900 employees, or 7% of its workforce. The cuts are part of Cisco's ongoing strategic shift toward fast-growing areas of technology such as AI and cybersecurity. This follows the first round of layoffs in February, when the company cut 4,000 jobs.
Infineon, IBM and Skipdiches also join the layoff trend
German chipmaker Infineon announced on August 5 that it will cut 1,400 jobs globally, with an additional 1,400 positions being moved to countries with lower labor costs. The company's decision is part of its “Step Up” cost-saving program, which aims to address the challenges of declining revenues and rising operating costs.
IBM has also joined the list, planning to shut down its R&D operations in China, which is likely to affect more than 1,000 jobs. The move comes in response to declining demand for IBM's hardware and challenges in growth markets such as China. Despite the cuts, IBM assured that its ability to support customers in the Greater China region will not be affected.
Canadian online food delivery service SkipTheDishes and its parent company Just Eat Takeaway.com also announced layoffs, including 100 Canadian market employees and 700 operational staff. CEO Paul Burns said the restructuring was necessary for the company's stability in a challenging market.
What is causing the increase in layoffs?
The significant rise in layoffs can be attributed to the aggressive cost-cutting strategies being adopted by companies to cope with the challenging financial environment. Intel's massive job cuts underscore the urgency of these measures, driven by declining profits and a gloomy financial outlook for the second half of 2024. Similarly, Cisco's layoffs reflect a strategic realignment toward high-growth areas such as AI and cybersecurity, which require a shift in resources.
conclusion
The surge in layoffs in August highlights the macroeconomic challenges and strategic shifts facing companies across various industries. As firms such as Intel, Cisco, Infineon, IBM and SkipDish continue to restructure their operations, the trend of job cuts may continue as businesses adapt to changing market conditions.
