In New York: Some technology companies are seeing an acceleration in layoffs that began in 2022.
Jobs are being cut in the tech industry at a rate that is approaching the early stages of the COVID-19 pandemic. According to consulting firm Challenger, Gray & Christmas Inc., the sector announced 52,771 layoffs in November, the most recent month for which data are available, for a total of 80,978 this year. This was the industry's highest monthly total since Challenger, Gray & Christmas Inc. began keeping data in 2000.
Tech companies benefited from an increase in spending on e-commerce and remote work following a rocky start to the pandemic in 2020, resulting in a hiring frenzy. Things appear different now. Alphabet Inc., Meta Platforms Inc., Microsoft Corp., and others missed estimates in recent earnings reports, sending shares plunging. The prospects for Salesforce Inc. and Amazon.com Inc. appear to be getting worse as they begin 2023 with more layoffs. Other businesses are anticipating either a sudden decrease in demand or volatile cryptocurrency markets.
The following is a current list of employers who are cutting back on hiring:
On January 4, Chief Executive Officer Andy Jassy of Amazon announced that 18,000 employees would be laid off. It was initially planned that approximately 10,000 jobs would be affected by the cuts, which began last year.
Jassy stated, "Amazon has endured uncertain and challenging economies in the past, and we will continue to do so." With a stronger cost structure, these changes will enable us to pursue our long-term opportunities.
Amazon stopped "new incremental" hiring across its corporate workforce in November.
People who are familiar with the situation claim that Apple's decision to halt hiring for many positions outside of research and development is an expansion of its strategy to cut costs heading into the coming year. The break usually doesn't apply to teams working on long-term projects and future devices, but it does affect some corporate functions and traditional roles in hardware and software engineering.
About 100 jobs at Adobe have been eliminated, most of them in sales. Some employees were promoted within the company to new positions.
Chime Financial Inc., a digital banking startup, is cutting 160 employees, or 12 percent. The move will position the business for "sustained success," according to a spokesperson.
About 5% of Cisco Systems' employees will be affected by a plan to restructure. According to the company, severance, termination, and other costs will result in approximately $600 million in pretax expenses. In an interview, Chief Financial Officer Scott Herren stated that employees will have the opportunity to move on to other positions within the company.
Herren stated, "This is not about reducing our workforce; in fact, at the end of this fiscal year, we will have roughly the same number of employees as when we started." As of July 30, Cisco had more than 83,000 employees.
As the cryptocurrency market plummets, Coinbase Global Inc. is cutting 60 jobs. In June, the crypto exchange announced that it would lay off approximately 1,200 workers, or 18% of its workforce.
Roham Gharegozlou, the founder and CEO of Dapper Labs Inc., informed employees in a letter that the company had laid off 22% of its workforce. He cited macroeconomic conditions and operational difficulties brought on by the business's rapid expansion. The NBA Top Shot marketplace for nonfungible tokens, a digital asset class whose demand has significantly decreased since the crypto market downturn, was developed by Dapper Labs.
Digital Currency Group A restructuring that saw approximately ten employees leave the cryptocurrency conglomerate Digital Currency Group begin last month Mark Murphy was elevated from chief operating officer to president as part of the shakeup.
DoorDash acknowledges that its rapid expansion during the pandemic has resulted in mounting losses and is eliminating approximately 1,250 jobs. Bloomberg reported that the reductions will have an impact on approximately 6% of the company's workforce, which will include employees based in the United States and other countries.
In a letter to employees, Chief Executive Officer Tony Xu wrote, "While our business continues to grow quickly, given how quickly we hired, our operating expenses — if left unabated — would continue to outgrow our revenue."
The crypto financial services company Galaxy Digital Galaxy Digital Holdings Ltd., which was founded by billionaire Michael Novogratz, is considering cutting as many as 20% of its workforce. According to those who are familiar with the situation, the final figure could be anywhere from 15% to 20% of the original plan. As part of a decline in cryptocurrencies, Galaxy's shares have dropped by more than eighty percent this year.
Due to a decrease in demand for personal computers, HP HP Inc.'s profits will decrease over the next three years by as much as 6,000 jobs. The company will reduce its real estate footprint as well as reduce its workforce by approximately 10%.
According to the chipmaker, Intel Intel Corp. is cutting jobs and slowing spending on new plants in an effort to save $3 billion next year. Investors liked the plan, which saw the shares rise by more than 10% on Oct. 28. The goal is to save as much as $10 billion by 2025. The headcount reduction could number in the thousands, Bloomberg News stated earlier.
Kraken In response to the worsening effects of this year's digit-asset market meltdown, the cryptocurrency exchange Kraken is cutting 30 percent of its workforce. The reductions affect approximately 1,100 people.
Lyft Lyft Inc. is cutting costs by selling off its auto service business. About 683 people, or 13% of the staff, will be let go. The business had previously stated that it would stop hiring in the United States until at least next year. It now has headwinds that are even stronger.
John Zimmer and Logan Green, who were also co-founders of the company, wrote in a memo, "We are not immune to the realities of inflation and a slowing economy." We need 2023 to be a time when we can better execute without having to change our plans in response to events outside of our control, and the hard truth is that our actions today set us up for that.
Meta This is the first significant round of layoffs in the social media company's history, with the parent company of Facebook cutting 11,000 jobs. After several quarters of declining revenue and earnings, Meta's stock has plummeted this year, and the company is working to cut costs. Meta will extend its hiring freeze through the first quarter, and the reductions amount to approximately 13% of the workforce.
Mark Zuckerberg, CEO, stated in the statement, "I want to take responsibility for these decisions and for how we got here." I am particularly sorry for those impacted, as I am aware that this is difficult for everyone.
Opendoor Technologies Inc. announced that it will lay off approximately 550 employees, or 18% of its workforce. The company, known as iBuying, employs a data-driven take on home flipping and is coping with decreased demand for housing as a result of higher mortgage rates.
Peloton In October, Peloton Interactive Inc. laid off 500 workers worldwide, or about 12% of the workforce. The company had to lay off employees for the fourth time this year. Peloton said that the move will help it reach the break-even point on cash flow by the end of fiscal 2023, along with other measures to cut costs.
In an October memo, CEO Barry McCarthy stated, "I know many of you will feel angry, frustrated, and emotionally drained by today's news, but please know this is a necessary step if we are going to save Peloton, and we are." Our objective is to control our own destiny and ensure the business's future viability.
In order to cut costs, Plaid Plaid Inc laid off 260 employees. In a memo to employees, CEO Zach Perret announced that the fintech company would offer some employees severance pay of 16 weeks and accelerate equity grants.
As a result of a faster-than-anticipated decline in demand for smartphones that make use of Qualcomm's chips, Qualcomm Inc. announced that it has halted hiring. In contrast to its earlier prediction, it now anticipates a decline in smartphone shipments of double digit percent this year.
According to a regulatory filing on January 4, Salesforce Salesforce Inc. will reduce its real estate holdings and lay off approximately 10% of its workforce. During the pandemic, CEO Marc Benioff wrote to employees, "We hired too many people." About 80,000 people worked for the software company.
The largest manufacturer of computer hard drives, Seagate, announced that it would cut about 3,000 jobs. A decrease in spending on hardware has had a significant impact on computer suppliers like Seagate and Intel. According to Seagate CEO Dave Mosley, customers are sitting on a pile of extra inventory, which hurts orders and affects the company's financial performance. That required reductions. He stated, "We have taken swift and decisive actions to respond to the conditions of the current market and enhance long-term profitability."
One of the most valuable startups in the world, Stripe Inc., a payment processing company, is cutting over 1,000 jobs. The company's February headcount of almost 7,000 will be restored by the 14% staff reduction. As they prepared for "leaner times," co-founders Patrick and John Collison advised employees that they needed to cut costs more broadly.
Twitter's recent buyout and debt are more to blame for the company's turmoil than economic concerns. However, the company is currently experiencing some of the deepest cuts among its competitors. By email, Elon Musk, who purchased Twitter for $44 billion, eliminated approximately 3,700 jobs. Additionally, Musk rescinded the company's work-from-anywhere policy and instructed the remaining staff members to report to offices.
Musk posted a tweet on November 4 that read, "Regarding Twitter's reduction in force, unfortunately there is no choice when the company is losing over $4 million per day."
An online lending platform called Upstart Upstart Holdings Inc. stated in a regulatory filing that it had laid off 140 hourly employees "given the challenging economy and reduction in the volume of loans on our platform."
In a regulatory filing on January 4, Vimeo Inc. said that 11 percent of its global full-time employees would be laid off.