Layoff Wave Hits Big Tech: 150,000 Jobs Cut as Companies Trim Costs!

Nearly 150,000 employees of large corporations, including Tesla, Intel, Microsoft, and Cisco, are facing layoffs as part of a massive wave of layoffs in the IT sector in 2024. Fears of a recession, rising prices, and the growing impact of artificial intelligence (AI) on the labor market are some of the leading causes of this trend. Businesses are taking preemptive steps to cut expenses as economic uncertainty looms, frequently leading to employment reductions. Enterprises focus on efficiency and streamlining operations due to their struggling revenues and profitability.

Employees are worried about their job security due to the increasing layoffs, which point to a possible catastrophe in the computer industry. As businesses prioritize AI-related skills and automate tasks that computers can complete, it makes sense that many employees are concerned about their jobs. This change puts current jobs at risk and points to a more significant shift in the workforce. Companies' ability to invest in expansion is further limited by the Federal Reserve's interest rate hikes, which make borrowing more costly. This results in cautious hiring practices and layoffs.

Tesla's two-pronged attack: 20,000 job losses

Under the direction of CEO Elon Musk, Tesla has been implementing dramatic layoffs, cutting over 20,000 workers from various divisions. Both junior and senior executive levels saw layoffs due to Musk's order to "be tough core" about employment cuts; the Supercharging team was particularly badly hit. According to Bloomberg, Tesla may lay off up to 20% of its staff.

Artificial intelligence's (AI) long-term effects on job security in the technology industry are complex, offering workers benefits and concerns. Routine chores are anticipated to be automated by AI technologies as they develop and become more integrated into different businesses, perhaps resulting in a significant loss of jobs. According to estimates, millions of jobs could be lost due to AI, especially in industries like manufacturing and data entry that rely significantly on repetitive work. This displacement is a manageable loss, too, as new positions requiring strong AI and technology management skills are being created in line with it.

SAP reorganizes, impacting 8,000 workers

The enterprise software giant SAP is going through a significant reorganization that will impact 8,000 workers or about 7% of its workforce. The company has implemented buyouts or job adjustments as part of a continuous effort to streamline operations and prepare itself for future growth.

Byju's reduces 2,500 positions due to financial difficulties.

As part of continuous restructuring efforts, the Indian ed-tech behemoth Byju's lay off 2,500 workers, or around 5% of its staff. Byju's is attempting to simplify its business practices and adapt to a shifting market in light of its growing debt.

In the most challenging year in history, Intel cuts 15,000 jobs.

Intel announced a significant layoff of 15,000 employees, or more than 15% of its staff, to save $10 billion by 2025. The massive chipmaker is cutting R&D, marketing, and capital spending to strengthen its financial position in the face of challenging market conditions after suffering large losses. Efficiency, cutting out unnecessary procedures, and spending optimization are the main goals of the reorganization.

Cisco has cut 10,000 positions as demand changes.

In two rounds of layoffs this year, networking behemoth Cisco let go of almost 10,000 workers. In February, the company reduced its personnel by 5%; in the second half of the year, it reduced its workforce by 7%. As CEO Chuck Robbins stated, Cisco is adjusting to a "more normalized demand environment" and shifting its attention to high-growth industries like cybersecurity and artificial intelligence.

As these patterns develop, there is increasing conjecture that a recession may be imminent. According to economic indicators, businesses appear to be preparing for more difficult times, which might worsen job losses in various industries. The repercussions of these layoffs are not limited to the United States; nations such as India are also affected. Over 8,000 people have already been laid off by Indian digital businesses like Paytm and Unacademy, according to reports of significant employment losses. Given the ongoing economic challenges, this position begs whether workers in the tech sector should be afraid for their jobs in the future.