In 2024, the technology sector has faced significant upheaval, with over 124,000 employees laid off across various companies. This wave of layoffs has affected firms from startups to established giants, illustrating the challenges the industry is grappling with. Notable companies involved in these job cuts include Intel, Microsoft, Dyson, and Intuit, among others. The layoffs reflect a broader trend of restructuring and cost-cutting measures as firms adapt to changing market conditions and technological advancements.
In July alone, more than 8,000 positions were eliminated across 34 technology companies. This figure has contributed heavily to the year's cumulative layoff statistics, which have reached a staggering total of 124,517. According to layoffs.fyi, a tracking website, the layoffs span across 384 different firms globally, highlighting the widespread impact of this crisis.
Intel, one of the largest semiconductor manufacturers, announced plans to cut over 15,000 jobs, representing more than 15% of its global workforce. This decision is part of a $10 billion cost-reduction strategy aimed at achieving significant savings by 2025. CEO Pat Gelsinger attributed these layoffs to disappointing revenue growth and difficulties in capitalizing on artificial intelligence trends. The majority of these cuts are expected to occur by the end of 2024, with affected employees being offered options for voluntary retirement.
Similarly, UKG revealed plans to reduce its workforce by approximately 2,200 employees, which constitutes around 14% of its total staff. The company stated that this reduction is necessary to refocus its efforts on key growth areas and long-term strategic objectives. Microsoft also joined the ranks of companies making cuts, laying off over 1,000 employees, primarily in its mixed reality and Azure divisions, although the company has not officially confirmed the specifics of these layoffs.
In the edtech sector, Unacademy announced layoffs affecting about 250 employees as part of a restructuring effort. This move follows a series of job cuts that have become common in the industry, as companies strive to navigate financial pressures and shifting market demands. Meanwhile, Chennai-based agritech firm WayCool laid off more than 200 employees, marking its third round of layoffs this year, which it attributed to financial losses and ongoing funding challenges.
The gaming industry has not been spared either, with Bungie, the studio behind popular titles, announcing a reduction of 220 positions, accounting for 17% of its workforce. This decision was driven by rising development costs and economic challenges. Additionally, Kaspersky, a Russian cybersecurity firm, announced it would cease operations in the U.S. due to a government ban on its software, leading to layoffs of its U.S. employees.
As these layoffs continue to unfold, they reflect a significant shift in the tech industry, where companies are forced to reassess their workforce and operational strategies. The current landscape poses challenges not only for the companies involved but also for the employees affected, as they navigate the uncertain job market in search of new opportunities.
