AI is one of the many reasons why IT companies are firing employees left and right.
Let’s examine five of the largest corporations that let go of staff members in March 2024.
Dell layoffs
Dell Technologies reduced its workforce as part of broader cost-cutting measures that also included limiting external hiring and reorganizing employees. About 120,000 workers were employed by Dell as of February 2, down from almost 126,000 a year earlier.
Dell reported an 11% fall in Q4 revenue, which was attributable to weak computer demand. Dell expects sales from its PC-housing client solutions sector this year, despite being worried about short-term difficulties and rising input prices.
While Dell Technologies is going through a phase of restructuring and reorganization, there are layoffs.
Apple layoffs
Apple stopped internal development of microLED displays for a possible future Apple Watch model, which led to layoffs. The microLED displays provided brighter and more vivid visuals, but they were too expensive and hard to investigate further.
Apple reorganized the teams in charge of creating screens and let go of several dozen employees in the US and Asia. Some affected workers may earn internal promotions, while others may be laid off and compensated for their separation.
This step marks the end of yet another costly R&D initiative, with the closure of the Apple Car business.
IBM layoffs
Staff workers in the marketing and communications division were informed of impending layoffs by IBM’s chief communications officer during a brief meeting. The business announced plans in August of last year to replace some 8,000 jobs with AI technology. The layoffs are a part of IBM’s most recent “workforce rebalancing” measures.
IBM anticipates having roughly the same number of employees worldwide as it did at the beginning of 2024. The company seeks to maintain its competitiveness by using AI-driven efficiency to optimize operations. IBM’s ongoing efforts to reorganize in response to changing market conditions and technological advancements are what led to the layoffs.
Ericsson layoffs
In Sweden, Ericsson lay off about 1,200 workers as a result of the decline in demand for 5G network equipment. The layoffs are a part of a bigger cost-cutting plan that includes reducing consultant expenses, streamlining processes, and closing premises by 2024.
Ericsson said that while customers continue to be conservative with their spending, they expected a challenging mobile networks market with further volume declines. In an attempt to reduce costs, Ericsson let go of 8,500 workers globally in the previous year, resulting in an 8% reduction in headcount.
The company employed around 100,000 workers globally by the end of 2023.
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