The tech sector in 2024 is going through a rough patch, marked by a relentless wave of layoffs that has not spared any corner of the industry. So far, the toll has been heavy: over 130,000 tech workers from 457 different companies have lost their jobs.
The impact of these layoffs cuts across the spectrum, from Silicon Valley’s biggest names like Tesla, Amazon, Google, TikTok, Snap, and Microsoft, all of which have scaled back their teams significantly, to the smaller, vulnerable startups. For these smaller players, the economic strain is often so severe that they’re not just reducing their headcount—they’re closing their doors permanently.
As we take a closer look at the top 5 biggest tech company layoffs of 2024, it becomes clear that no company, regardless of its size or industry reputation, is safe from the current economic headwinds blowing through the tech world.
Major Layoffs at Intel and SAP
Intel, a giant in the technology sector, recently had to make some difficult decisions. In early August, the company made a dramatic move by announcing a significant reduction in its workforce, cutting around 15,000 jobs, which represents over 15% of its employees.
This severe step is part of a broader initiative to cut costs by more than $10 billion by the fiscal year 2025. The emotional weight of these decisions was clearly expressed in a poignant open letter from Intel’s CEO, Pat Gelsinger. He said, “This is painful news for me to share. I know it will be even more difficult for you to read. This is an incredibly hard day for Intel as we are making some of the most consequential changes in our company’s history.”
SAP recently had to adjust its strategy and deepen its layoffs, revising the initial estimate from 8,000 up to between 9,000 and 10,000 job cuts. This significant increase was announced during their July earnings call for fiscal year 2024.
In the midst of discussing these challenging decisions, SAP CEO Christian Klein noted the resilience of the company amidst industry ups and downs, saying, “Despite the volatile environment in the software industry, our growth momentum remained strong in Q2.” These cuts are integral to SAP’s ‘Ambition 2025’ restructuring effort, which aims to streamline their operations and focus sharply on strategic growth areas like business AI, in an effort to enhance efficiency and operational synergy across the company.
Cisco and Microsoft Also Make Deep Cuts
Cisco Systems is another major entity that has not been spared from the layoffs crisis, with the company confirming over 9,000 job cuts so far this year. During Cisco’s fiscal Q2 2024 earnings call, Chuck Robbins, the Chair and CEO of Cisco, explained the reasoning behind the layoffs and the expected financial implications, saying that about $800 million in charges associated with the restructuring are expected. These include severance and other one-time termination benefits.
Microsoft has also been trimming its workforce, particularly within its Azure and mixed reality divisions, with a total of 1,500 layoffs reported. A Microsoft spokesperson outlined the necessity of these adjustments, stating, “Organizational and workforce adjustments are a necessary and regular part of managing our business. We will continue to prioritize and invest in strategic growth areas for our future and in support of our customers and partners.”
Meta Implements Broad Layoffs
Rounding out the list is Meta, which has seen significant workforce reductions across several departments. According to an emailed statement to TechCrunch, the company explained that these layoffs were part of a strategic alignment to ensure resources are consistent with its long-term goals.
Although Meta has not disclosed the full extent or the specific teams that have been most affected, it is known that the Threads, recruiting, and legal departments have seen changes. This move highlights the tough decisions even social media giants are having to make in an increasingly unpredictable tech landscape.
