Global tech sector hit by wave of job cuts as economic pressures mount

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20th April 2024 – (Shanghai) The global technology sector is bracing itself for a fresh round of job cuts as major players struggle to navigate the treacherous waters of economic uncertainty. In a series of announcements that underscore the industry’s growing pains, Ericsson, Tesla, Amazon, and Intel have all confirmed significant reductions in their workforce, with China emerging as a key battleground.

Swedish telecommunications giant Ericsson has axed around 240 roles at its core network R&D facility in mainland China, hot on the heels of its decision to cut 1,200 jobs in Sweden. While the company has reaffirmed its commitment to the Chinese market, the move is seen as a strategic realignment of its R&D activities to mirror geographical sales trends.

Tesla, meanwhile, has implemented a round of job cuts primarily targeting its sales workforce in China. Although production at its Shanghai Gigafactory remains unaffected, the electric vehicle maker is reportedly considering the closure of several showrooms across the country, hinting at a shift in its operational focus. Intel, too, is said to be preparing for another round of layoffs, with its sales and marketing divisions likely to bear the brunt of the cuts.

Amazon Web Services (AWS) has also joined the ranks of tech companies shedding jobs, although the exact number of affected employees remains under wraps. While reports of generous severance packages have been disputed by AWS representatives, the company has pledged to support those affected in their transition to new roles.