Over 75,000 job cuts were recorded in August, a 193% increase from July. This surge is the highest single-month layoffs since March 2024 and aside from 2020, it’s the most job cut total in an August since 2009, when 76,456 jobs were slashed.
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536,421 layoffs have been announced so far in 2024, which is a 3.7% decrease compared to the same period in 2023. The overall number of job cuts remains lower than last year.
The technology sector led the August layoffs with 39,563 jobs cut. This industry has led in layoffs throughout 2024. Major firms like Cisco, Intel, Scale AI and Infineon were among those announcing layoffs in August.
The education sector has also been hit hard with 25,396 layoffs announced so far in 2024, a 222% increase compared to August of last year.
The entertainment sector saw 21,686 layoffs, while industrial manufacturing experienced 17,828 job cuts by the end of August.
Companies have announced plans to hire nearly 80,000 workers so far in 2024, which is a 41% decrease compared to the 135,980 hiring plans recorded by this time in 2023. This is the lowest year-to-date total for planned hiring since Challenger began tracking the data in 2005.
According to the Job Openings and Labor Turnover Survey (JOLTS), job openings fell to their lowest level in over three years in July 2024.
The ratio of job openings to available workers dropped below 1.1, a shrinking labor market and more difficulties for job seekers.
Top Layoff Announcements
Intel announced one of the largest layoffs in August, cutting 15,000 jobs. This is more than 15% of the company’s total workforce. The decision comes as part of Intel’s strategy to reduce spending by $10 billion by 2025. The move follows a disappointing second-quarter earnings report with CEO Pat Gelsinger attributing the layoffs to high operational expenses and narrow profit margins. The company is struggling with shrinking revenues. Between 2020 and 2023, Intel’s annual revenues dropped by $24 billion.
Cisco Systems announced its second major round of layoffs in 2024. The company cut 6,000 jobs or 7% of its total workforce. CEO Chuck Robbins remains optimistic about a rebound in demand for networking solutions but acknowledges the need for the company to stay agile. Cisco pledged $1 billion towards AI startup investments and acquired Splunk, a cybersecurity firm for $28 billion.
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IBM also made headlines in August for closing its research and development facilities in China leading to the layoff of over 1,000 employees. The company is struggling to maintain a foothold in the Chinese market due to decreasing demand for IT hardware. IBM will now prioritize serving private enterprises and select multinational corporations within China.
GoPro announced a 15% reduction in its workforce, cutting around 140 jobs. This downsizing is part of a restructuring plan to reduce operational expenses by $50 million by the end of 2024.
Apple laid off an additional 100 employees in August. The layoffs primarily impacted the company’s services division including teams working on the Apple Books app and the Apple Bookstore. Previously, Apple laid off 600 employees from its Special Projects Group in January 2024 and disbanded a 121-member AI team based in San Diego.
Dell Technologies also made changes to its workforce, although the exact number of layoffs has not been confirmed. Reports suggest that Dell may have laid off approximately 12,500 employees, which equates to about 10% of its global workforce.
Infineon announced plans to cut 1,400 jobs while relocating another 1,400 positions to countries with lower labor costs. CEO Jochen Hanebeck cited weak economic momentum and excess inventory levels as reasons for the slow recovery in the company’s target markets.
ShareChat, a social media company based in Bengaluru reduced its workforce by 5% equating to around 30 to 40 employees. This move followed a bi-annual performance evaluation conducted in August. Brave cut 27 jobs or approximately 14% of its workforce.
Over 1,150 tech companies fired more than 260,000 employees in 2023, a 15% rise in layoffs compared to 2022. Major players like Amazon, Microsoft, Meta and SAP were among the hardest hit with Amazon alone laying off 16,000 employees.
Microsoft and Meta followed closely behind, cutting around 10,000 jobs each. SAP laid off approximately 8,000 employees as part of its restructuring efforts.
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