The Information and Communication Technology (ICT) sector continues to experience a rise in layoffs, with numerous tech companies leading the trend over the past two years. Among the companies that have implemented significant staff reductions are several high-profile tech giants.
Microsoft has been at the forefront of these layoffs, cutting jobs at its African Development Centres in Lagos and Kenya. In January 2024, the company announced a reduction of 10,000 jobs, part of a broader strategy to scale down its workforce globally.
Despite healthy revenues, major companies like Apple, Cisco, and Microsoft have joined in slashing jobs, sparking discussions on the triggers behind this growing layoff culture. The wave of layoffs across the tech sector began in November 2022 and has persisted into the latter half of 2024.
Several large companies have continued their workforce reductions as part of restructuring efforts. IBM, for instance, initiated a second round of layoffs in 2024, targeting senior programmers, sales, and support staff. This “workforce rebalancing” strategy aims to cut a small percentage of its global workforce, but the company expects to finish the year with a similar number of employees as it had at the start. These cuts reflect a broader trend of downsizing in the tech industry.
WeTransfer, which was recently acquired by Bending Spoons, also faced significant layoffs, cutting 75% of its workforce as part of a profitability strategy. This highlights the challenges tech companies face in maintaining profitability amidst a tough economic climate.
Cisco has been on a layoff streak, with a significant 7% workforce reduction in August 2024, affecting around 5,600 employees. This followed an earlier layoff in February, when 4,000 employees were let go. The August layoffs impacted employees from Cisco’s Talos Security division, which specializes in threat intelligence and security research. Cisco defended the move, stating that it was necessary to “facilitate investments in growth opportunities and efficiency.” The company emphasized that these workforce reductions were crucial to staying competitive in the fast-evolving tech industry.
Dell Technologies also announced plans to continue its workforce reduction into 2024, focusing on cost management amidst a slow recovery in PC demand. Despite the layoffs, Dell aims to expand its AI server business to meet the growing demand in the artificial intelligence sector, though profitability remains a challenge due to the high costs of computer chips.
Udemy, an online learning platform, also made headlines as it prepared to cut 50% of its workforce. The company plans to rehire in lower-cost regions as part of its restructuring efforts.
The second half of 2024 has seen ongoing layoffs across the tech sector, with major players like IBM, Cisco, and Microsoft significantly reducing their workforces. These restructuring and cost-cutting measures, driven by economic challenges, are impacting both large corporations and smaller startups alike. Despite this, there is a promising outlook for fresher recruitment in the IT services sector for FY25, signaling potential recovery in the industry.
