This wave of layoffs reflects broader trends, with large corporations and startups alike struggling to maintain profitability. Healthtech startup Dozee laid off 40 employees in an effort to cut losses, while WeTransfer, following its acquisition by Bending Spoons, slashed 75% of its workforce. These cuts highlight the growing financial pressures tech companies face.
Cisco, a major player in the tech industry, announced a 7% workforce reduction in August, affecting approximately 5,600 employees, including members of its Talos Security division. This followed an earlier round of cuts in February, which saw 4,000 employees let go. The company defended the layoffs as necessary to invest in growth and maintain competitiveness.
Microsoft also joined the list of tech giants laying off employees, cutting 650 jobs in its Xbox division. Despite these cuts, the company reassured that no game cancellations or studio closures were tied to the layoffs, focusing on restructuring following its acquisition of Activision Blizzard. Qualcomm and Dell are also scaling back their workforce, with Qualcomm planning to lay off 226 employees later this year and Dell continuing cuts into 2024 due to financial challenges and a slowdown in PC demand.
Outside of the tech sector, companies like Akzo Nobel, Paramount Global, and Disney have also implemented significant job cuts. Akzo Nobel, known for its Dulux paint brand, will cut 2,000 jobs globally, focusing on head office roles to improve efficiency. Paramount Global’s second round of layoffs hit divisions like CBS, Comedy Central, and MTV, while Disney has continued its corporate restructuring with layoffs aimed at streamlining operations.
Despite these layoffs, experts predict a strong rebound in fresher hiring in the IT services sector in FY25, with projections suggesting a near doubling of entry-level hires compared to FY24. This optimistic outlook is driven by increasing demand in sectors like banking and financial services, as well as major deal wins by Indian IT firms.
While the tech industry faces challenges, the sector’s ability to adapt and restructure offers hope for recovery in the near future. However, for now, companies are bracing for more job cuts as economic pressures continue.
