[News] Nearly 150,000 Jobs Cut in Tech: Layoffs from Intel, Tesla, Microsoft, and More

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According to a report by The Times of India, the tech industry has faced substantial layoffs in 2024, with approximately 150,000 jobs eliminated across major companies. Tech companies like Tesla, Intel, Cisco, and Microsoft are among those reducing their workforces.

The report highlights that these job cuts are primarily driven by cost-cutting initiatives, organizational restructuring, and the need to adapt to changing market dynamics. Once renowned for its rapid growth, the tech sector is now grappling with a challenging economic climate, compelling companies to make difficult staffing decisions.

Intel Cuts 15,000 Jobs, Facing Its Toughest Year Yet

Intel is facing considerable financial losses in 2024. According to the report, the company has announced plans to reduce USD10 billion in costs by 2025, including laying off 15,000 employees—over 15% of its current staff of more than 125,000.

As part of these measures, Intel will reduce its annual spending on research, development, and marketing by several billion dollars through 2026. In 2024 alone, the company plans to cut over 20% of its capital expenditure, as the report notes.

Tesla Cuts Over 20,000 Jobs Across Teams

The report points out that Tesla executed two rounds of layoffs this year, first reportedly cutting at least 14,000 employees, followed by hundreds more, including senior executives and much of its Supercharging team.

According to the report, in an email to executives, CEO Elon Musk urged a “hardcore” approach to the cuts, stating that employees working under leaders who fail the “excellent, necessary, and trustworthy” standard would also be let go. Citing Bloomberg, the report notes that Tesla’s total workforce reduction could reach 20%, exceeding 20,000 employees.

Cisco Cuts Around 10,000 Jobs in Two Rounds

Cisco Systems, the networking giant, conducted two rounds of layoffs this year, as the report indicates. In February, the company reduced its global workforce by 5%, laying off approximately 4,000 employees. Later, it announced another 7% cut, cutting around 6,000 more jobs.

SAP Announces Restructuring Affecting 8,000 Employees

SAP has unveiled a restructuring plan impacting 8,000 employees, accounting for over 7% of its 108,000 full-time workforce. Despite the changes, the company stated that its overall headcount will remain unchanged by the end of the year, as noted by the report.

Uber Cuts a Significant Portion of Its Workforce

According to layoffs.fyi, Uber laid off 6,700 employees this year. The company has closed offices and re-evaluated its self-driving units, driven by a decline in its ridesharing business during the pandemic.

Dell Lays Off 6,000 Employees and Plans Further Cuts

Dell carried out its second major workforce reduction in two years, laying off 6,000 employees amid challenging market conditions. The report highlights that company’s personal computer division has faced weak demand, with an 11% revenue decline in 2023.

Dell has indicated that workforce reductions will continue in 2024, citing cost concerns and a slow recovery in PC demand, as highlighted by the report.

Bell Cuts 5,000 Jobs via 10-Minute Video Calls

Canadian telecommunications company Bell laid off approximately 4,800 employees—9% of its workforce—through 10-minute virtual video call terminations. The report notes that the company justified the restructuring as a strategic move to simplify its organization and adjust its business model, despite the significant impact on employees.

Xerox Lays Off Over 3,000 Employees

Xerox announced plans to reduce its workforce by 15% as part of a shift to a new organizational structure, as the report notes. With approximately 20,500 employees as of December 31, 2022, this move impacted over 3,000 positions.

The restructuring aims to streamline Xerox’s core print business, enhance efficiency in global services, and prioritize IT and digital services. The report also mentions that the company revamped its executive team to align with the new model.

Microsoft Cuts Over 2,500 Jobs in Gaming Division Restructuring

Microsoft laid off 1,900 employees across Activision Blizzard, Xbox, and ZeniMax—about 8% of its Gaming division—to create a more sustainable cost structure. According to the report, the layoffs coincided with significant leadership changes, including the departures of Blizzard President Mike Ybarra and Chief Design Officer Allen Adham.

The report also points out that in September, the company announced an additional 650 job cuts, primarily affecting corporate and support roles, to streamline its team structure following acquisitions.

PayPal Lays Off 2,500 Employees, Reducing Workforce by 9%

PayPal announced a 9% workforce reduction, laying off 2,500 employees in response to rising competition. The report, citing CEO Alex Chriss, states that the goal is to “right-size” the company by implementing direct cuts and eliminating open positions.

With a workforce of approximately 29,900 in 2022, PayPal initiated the layoffs in January, as the report notes. Chriss emphasized in a letter that the job cuts aim to ensure profitable growth, while the company will continue investing in key growth areas, as highlighted by the report.

Byju’s Cuts 2,500 Jobs Amid Debt Struggles

According to the report, Byju’s reduced its workforce by 5% this year, laying off approximately 2,500 employees, along with a few hundred additional roles, as the company works to address its debt challenges.

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(Photo credit: Intel)