27,000 techies laid off across the globe in August, highest since January 2024

Hyderabad: The layoffs in tech companies has witnessed a surge in August, since January 2024.

According to reports, a total of 27,065 employees have been laid off across 44 companies, indicating a sharp rise compared to July, when 30 companies removed 9,051 staff.

There have been significant job cuts from tech giants like Intel and Cisco.

On August 1, Intel CEO Pat Gelsinger announced plans to cut around 15,000 jobs, representing 15% of its workforce. The decision to layoff workforce was taken as part of Intel's strategy to deliver $10 billion in cost savings by 2025.

Later in the month, on August 14, Cisco Systems announced its second round of layoffs for the year. Over 5,900 employees or 7% of its workforce was affected due to the drive. 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.

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.

The significant rise in layoffs can be attributed to the aggressive cost-cutting measures adopted by companies to traverse through the challenging financial environment.

The layoffs by various tech companies highlights the broader economic challenges and strategic shifts they are facing across the world.