In the ever-volatile tech industry, layoffs continue to sweep through major corporations, with companies like IBM, Qualcomm, and Intel bracing for large-scale workforce reductions. These actions come as the companies seek to streamline operations, cut costs, and recalibrate business strategies to remain competitive in an evolving market. While Intel has already announced plans to cut 15,000 jobs by the end of October, IBM and Qualcomm are quietly following suit, each with their own sizable layoffs.

IBM quietly lays off thousands of long-serving employees

Despite IBM CEO Arvind Krishna previously indicating that thousands of jobs would be lost at the tech giant over the next few years, this latest round of layoffs has caught many employees off guard. While there was no formal announcement, reports from online forums like TheLayoff.com suggest that significant layoffs are occurring. According to anonymous sources, thousands of jobs—primarily held by experienced programmers, sales staff, and support employees—are being eliminated across IBM.

IBM, which employs approximately 288,000 people, is facing scrutiny for the way it is handling these job cuts. Many employees were reportedly asked to sign non-disclosure agreements (NDAs), preventing them from discussing the circumstances surrounding their layoffs. Although the exact number of affected employees remains unclear, it's estimated that the layoffs could impact close to 8,000 workers, echoing Krishna's earlier comments that advancements in AI would result in significant job losses at IBM.

The dynamics of IBM’s workforce shift are also raising questions. While the company is cutting jobs in the U.S., it continues to hire in India, suggesting a strategy of replacing older, more experienced employees in North America with younger talent in Asia. This practice has led to several age discrimination lawsuits against IBM, though the company has won most of these cases.

Qualcomm prepares for November layoffs amidst business diversification

Qualcomm, the chip giant known for its significant role in the mobile and telecommunications industries, is also preparing for a new round of layoffs, expected to take place in mid-November. According to a California Worker Adjustment and Retraining Notification (WARN) notice, Qualcomm plans to lay off at least 226 employees across 16 facilities in San Diego, where the company is headquartered.

These layoffs are part of Qualcomm's broader efforts to diversify its business and streamline operations. In a statement, a Qualcomm spokesperson highlighted the company’s focus on aligning its investments and talent with its business strategy. Qualcomm’s diversification strategy is aimed at positioning the company for new opportunities in emerging markets, but this has come at a cost to its workforce. Just last year, Qualcomm laid off over 1,200 employees as part of cost-cutting measures. In 2023 alone, Qualcomm posted $35.8 billion in annual revenue, underscoring the financial challenges it faces despite its size.

Intel plans to lay off 15,000 employees by October

Perhaps the most significant layoff announcement comes from Intel, which plans to cut approximately 15,000 jobs by the end of October. This is part of a larger $10 billion cost-cutting initiative announced in August, which includes both workforce reductions and other targeted measures such as cancelling leasing programs and reducing employee benefits. The layoffs will affect roughly 15% of Intel's global workforce.

Intel’s CEO, Pat Gelsinger, informed employees that the company is more than halfway to its workforce reduction target through voluntary early retirements and separation programs. However, many employees are still anxiously awaiting final notices, which are expected to be delivered in mid-October.

In addition to workforce cuts, Intel is implementing several other cost-saving measures. The company is reducing its real estate footprint, planning to downsize or exit two-thirds of its global properties by the end of the year. Furthermore, Intel’s foundry division—which manufactures chips for other companies—will become an independent subsidiary within the company, with its own board of directors and greater financial autonomy.

Despite these challenges, Gelsinger offered some positive news, announcing a new partnership with Amazon’s AWS cloud division to develop chips for its artificial intelligence (AI) business. Additionally, Intel secured a $3 billion contract with the U.S. government under the CHIPS Act, a move that could bolster the company’s standing in the industry.

Tech layoffs surge in 2024

These layoffs at IBM, Qualcomm, and Intel are not isolated incidents. 2024 has seen a significant surge in layoffs across the tech industry, with over 60,000 job cuts reported across 254 companies, according to Layoffs.fyi. Major companies such as Amazon, Google, Microsoft, and Tesla have all conducted layoffs in recent months as they face similar pressures to optimize resources and cut costs.

For example, Cisco, another tech giant, has also been engaged in two rounds of layoffs this year, letting go of about 4,000 employees in February and another 5,600 in August. In total, the tech industry shed 262,735 jobs globally in 2023, a 59% increase compared to 2022.

The future of tech employment: Uncertainty and adaptation

As the tech industry continues to evolve, these layoffs represent more than just cost-cutting measures—they signal a shift in the way tech companies are approaching their business models. For companies like IBM, Qualcomm, and Intel, navigating the balance between innovation and maintaining a lean workforce will be critical in the coming years.

IBM's use of AI to replace human jobs, Qualcomm’s shift towards diversification, and Intel’s restructuring of its foundry division are all examples of how these companies are adapting to a rapidly changing market. However, for the employees facing layoffs, these changes come at a personal and professional cost.

As the year progresses, it remains to be seen whether other tech giants will follow suit and implement similar workforce reductions. What is clear, however, is that the industry as a whole is undergoing a transformation—one that will have lasting impacts on both employees and the companies they work for.