The wave of layoffs in the tech industry shows no signs of slowing down in 2024. After significant reductions in the number of employees by tech companies in 2022 and 2023, the sector continues to see job cuts, both large and small, this year. According to independent layoff tracker Layoffs.fyi, as of August 30, 2024, 422 tech companies have laid off 136,782 employees.

It is not just small firms, but also big tech giants like Apple, Microsoft and Google, which have continued to reduce their workforce this year after announcing massive layoffs last year. These companies are reducing their workforce on a large scale, reflecting broader industry trends driven by cost-cutting measures, restructuring efforts and strategic shifts towards emerging technologies like artificial intelligence (AI).

As we approach the end of August 2024, let’s take a detailed look at the companies that have announced headcount reductions this month.

Apple

Apple is the latest big tech company to announce job cuts, reportedly laying off about 100 employees in its digital services group. The layoffs are expected to impact employees working in the company’s book and news teams, signaling potential changes to Apple’s digital content strategy. Earlier in May, Apple laid off 614 employees in California after a long-running electric vehicle (EV) project was shut down.

go pro

GoPro, known for its action cameras and related technologies, has also announced plans to cut its total workforce by about 15 percent before the end of 2024. This restructuring effort will reportedly affect around 139 employees, as the company looks to cut costs and refocus on its core business amid challenging market conditions.

Sonos

Audio technology company Sonos has confirmed another round of layoffs, cutting 100 employees or about 6 percent of its workforce. Sonos had previously cut 7 percent of its workforce in 2023, part of ongoing efforts to adapt to changing market dynamics and optimize operational efficiency.

Cisco

Networking giant Cisco is another big name that plans to eliminate thousands of jobs in another round of layoffs this year. The company has already laid off more than 4,000 employees by February 2024, part of a broader restructuring initiative aimed at reshaping its business to better align with current market conditions and future growth opportunities.

Ditch

Dell is also among the list of tech companies making cuts this month, as it plans to become “leaner” and create a new sales unit focused on AI products and services. While the exact number of employees affected by the layoffs has not been disclosed, an internal memo suggests a significant restructuring as the company shifts its strategy to capitalise on the growing demand for AI solutions.

Intel

Chipmaker Intel started this month with its biggest layoff announcement of the year, laying off 15,000 workers – equivalent to 15 percent of its total workforce. CEO Pat Gelsinger said the layoffs were due to slower-than-expected revenue growth and the need to better position the company for future technological trends, such as AI.

Microsoft

Meanwhile, Microsoft has continued its trend of layoffs in 2024, with multiple rounds of job cuts affecting various divisions. In January, the company laid off 2,000 employees from its gaming unit following its acquisition of Activision Blizzard. The layoffs in June and July included Microsoft’s cloud business Azure, the Hololens mixed reality segment, and product and program management roles. Although Microsoft has not revealed the exact number of jobs lost in these rounds, the impact has been felt globally, indicating a significant organizational restructuring.

Google

Google’s parent company Alphabet has been another major player in the layoff trend this year, laying off 630 employees from various units including its voice assistant, hardware teams (Pixel, Nest and Fitbit), ad sales and AR teams. CEO Sundar Pichai described these layoffs as part of efforts to “simplify execution and increase speed.” In April, Alphabet also laid off about 200 employees from its core teams, including several senior-level executives.

What is the reason for the layoff?

The continued wave of layoffs at these major tech companies reflects a broader trend in the industry, driven by a combination of cost-cutting measures, strategic shifts toward AI, and the need to adjust to post-pandemic market realities. Many companies that hired more employees during the pandemic are now facing the need to reduce their workforce as they attempt to balance costs with future growth opportunities. Additionally, the rapid rise of AI as a transformational technology has led many companies to reallocate resources and restructure their operations to better compete in this emerging field.