Over 27,000 jobs cut in tech: Apple, Cisco, IBM, among 40 companies to lay off employees in August

August saw one of the biggest workforce reductions in the technology industry, impacting over 27,000 employees collectively. Major companies like Apple , IBM, Cisco, and Intel announced job cuts across verticals in response to the ongoing economic downturn. The total number of tech workers impacted by layoffs by 422 companies now stands at 136,000 this year. While as many as 40 tech companies handed over pink slips to their employees in August, the biggest job cuts came from the leading companies. Here is a look at the major companies that reduced jobs in August:

Apple

One of the biggest tech companies, Apple let go of 100 employees from its services department, including teams at Apple Books and Apple Bookstore. The latest layoff adds to the previous cut of 600 employees, which impacted the Special Projects Group, and 121 employees that came after the company shut down its AI team in San Diego in January.

Cisco Systems

The enterprise-facing company, which primarily deals in AI and cybersecurity solutions, reduced the workforce by 7 per cent, representing a job cut of around 6,000 employees globally. The August layoff was the company’s second biggest move at marginalising costs after the one earlier this year. According to Cisco Systems CEO Chuck Robbins, the company “is optimistic about rebounding demand for our network equipment.”

Intel

One of the world’s biggest chipmakers, Intel cut more than 15,000 jobs in August, representing a reduction of 15 per cent of its workforce globally. The latest job cuts are a part of the company’s exercise to reduce spending by $10 billion as it navigates the slump in demand for chips and stiff competition from the likes of AMD and Qualcomm. Intel’s annual revenue dipped by $24 billion between 2020 and 2023, which CEO Pat Gelsinger cited for the workforce reduction. “Intel’s revenue growth shortfall is attributed to high costs and low margins, despite our leadership in the CPU chip revolution 25 years ago,” he said.

IBM

Another major tech company, IBM reduced jobs as a result of the closure of its research and development department in China. It cut over 1,000 jobs as the company said it “will prioritise serving private enterprises and select multinationals within the Chinese market.”

GoPro

The leading action camera company, GoPro cut 140 jobs across verticals in a bid to reduce operations cost by $50 million. This represents a reduction of 15 per cent workforce.

Infineon

Germany-based chipmaker Infineon announced 1,400 job cuts in August, citing slump in revenue. “The slow recovery in target markets is due to prolonged weak economic momentum and excess inventory levels,” said CEO Jochen Haneback. The company also said it would relocate 1,400 employees to locations with lower labour costs.