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The tech sector has been hit hard by a wave of layoffs in 2024, with over 124,000 employees losing their jobs across 384 companies worldwide. July alone saw more than 8,000 professionals from 34 tech firms laid off, signaling a continued trend of workforce reductions.
Intel, the semiconductor giant, announced plans to cut over 15,000 jobs, representing more than 15% of its workforce. CEO Pat Gelsinger cited lower-than-expected revenue growth and challenges in capitalizing on AI trends as key factors. "Our Q2 financial performance was disappointing, even as we hit key product and process technology milestones," Gelsinger admitted in a press release.
Other major players weren't spared. Microsoft trimmed roles across various departments, including Mixed Reality and Azure, though exact numbers weren't disclosed. UKG, a Massachusetts-based software company, initiated the month's largest layoffs, cutting 2,200 jobs or 14% of its workforce. Intuit Inc. followed suit, announcing plans to eliminate 1,800 positions, roughly 10% of its staff.
British appliance manufacturer Dyson revealed plans to cut approximately 1,000 jobs in the UK. CEO Hanno Kirner pointed to "fierce competition and rapid innovation" as reasons for the restructuring. Russian cybersecurity firm Kaspersky announced its exit from the U.S. market following a government ban, affecting dozens of employees.
The startup ecosystem felt the pinch as well. Bengaluru-based ReshaMandi laid off 80% of its workforce after failing to secure Series B funding. Indian microblogging platform Koo shut down operations entirely, while edtech giant Unacademy cut 250 jobs in a restructuring move.
Game development studio Bungie, owned by Sony, slashed 220 jobs (17% of its workforce) due to rising development costs and economic pressures. CEO Pete Parsons cited "overly ambitious growth and financial strain" as reasons for the cuts.
These layoffs reflect broader economic challenges facing the tech industry. Companies are grappling with slowing growth, increased competition, and the need to adapt to emerging technologies like AI. The situation underscores the volatile nature of the sector and the importance of sustainable business models.
