The tech sector continued to lay off workers throughout the second half of 2024, with some well-known corporations laying off almost 100,000 workers as part of their reorganization plans. For example, as part of its ongoing “workforce rebalancing” policy, IBM started a second round of layoffs, focusing mostly on senior programmers, salespeople, and support staff. Although the corporation hopes to cut a tiny portion of its global workforce, it expects to complete the year with about the same number of employees as it began.
About 40 workers were let go by healthtech firm Dozee, which operates throughout India, in order to reduce losses, while WeTransfer, which was recently purchased by Bending Spoons, reduced 75% of its workforce as part of an effort to increase profitability.
Cisco reports further layoffs
In August, Cisco announced a 7% staff decrease, impacting around 5,600 people, continuing its 2024 layoff pattern. This came after 4,000 jobs were lost in a previous round of layoffs in February. On September 16, workers were notified of the layoffs, including those from Cisco’s Talos Security subsidiary, which focuses on security research and threat intelligence.
Cisco claimed that the layoffs were required to maintain its competitiveness in the rapidly evolving tech sector.
Microsoft’s Xbox business has laid off employees
Additionally, Microsoft announced layoffs, firing 650 workers from its Xbox game division. In an attempt to restructure the team structure after Activision Blizzard was acquired, these layoffs mostly affected corporate and support functions. This followed a previous round of layoffs that impacted 1,900 workers earlier in the year.
Qualcomm, Dell, others continue job cuts
After laying off more than 1,250 people less than a year earlier, Qualcomm announced plans to lay off 226 staff in San Diego later in 2024. Qualcomm is implementing these layoffs as part of its plan to deal with its continuous financial difficulties.
In a similar vein, Dell Technologies said it would keep cutting employees until 2024, focusing on cost control in the face of a sluggish rebound in PC demand.
Layoffs announced by Udemy
Udemy is set to reduce its workforce by 50 per cent as part of a broader restructuring initiative. The company plans to rehire employees in regions with lower operational costs as part of this strategy.
In the IT services industry, fresher hires are anticipated to increase
While layoffs have dominated the headlines in 2024, the IT services sector anticipates a significant increase in fresher hiring for FY25. Projections suggest that entry-level positions could nearly double, reaching over 150,000 new roles compared to the previous financial year. This follows a period of low hiring in FY24, which recorded the lowest intake since 2000, with about 60,000 net hires.
Global economic difficulties cause a large number of layoffs
Layoffs are not just a problem in the tech sector. To deal with economic issues, a number of multinational firms have reduced their workforces significantly. According to reports, Samsung is thinking of laying off up to 30% of its employees in several departments, which might affect positions in administration, marketing, and sales. In a similar vein, PwC’s US branch reduced its employment by roughly 1,800 workers, its first significant layoff since 2009.
