Companies like Tesla, Intel, Cisco, and Microsoft are among those that have or are reducing their workforces.
According to the report these job cuts are primarily being driven by cost-cutting initiatives, organisational restructuring, and the need to adapt to changing market dynamics. Rapid growth has given way to a tech sector that is now grappling with a challenging economic climate, compelling companies to make difficult staffing decisions.
Among those making significant cuts is Intel, which has seen considerable financial losses in 2024. According to the report, the company has announced plans to reduce costs by $10 billion 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.
Tesla has 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, 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.
Dell carried out its second major workforce reduction in two years, laying off 6,000 employees amid challenging market conditions. The company’s personal computer division has faced weak demand, according to the report, with an 11% revenue decline in 2023.
Dell has indicated that workforce reductions will continue, citing cost concerns and a slow recovery in PC demand.
Other ‘big names’ shedding staff include Bell, Cisco, SAP, Uber and Xerox.
Microsoft laid off 1,900 employees across Activision Blizzard, Xbox, and ZeniMax - about 8% of its Gaming division - to create what it said would be 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.
