(Bloomberg) — Layoffs that began in 2022 are accelerating at some tech companies.
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The tech industry is cutting jobs at a pace approaching the early days of the Covid-19 pandemic. In November, the most recent month for which data is available, the sector announced 52,771 cuts, for a total of 80,978 cuts this year, according to consulting firm Challenger Gray and Christmas. We started storing data in 2000.
After the 2020 pandemic got off to a rocky start, tech companies benefited from a surge in e-commerce spending and a surge in remote work, resulting in a surge in hiring. Things look different now. Recent earnings reports have seen companies like Alphabet, Meta Platform, and Microsoft underperform expectations, sending stocks plummeting. The outlook looks worse for Amazon.com Inc. and Salesforce Inc. as they pursue significant layoffs in early 2023. Others are considering the volatility of the cryptocurrency market and the sharp drop in demand.
Job market mystery lies at the heart of the next recession
Here is the current list of those who have cut jobs and are holding back on hiring.
Amazon
The e-commerce giant will lay off 18,000 employees, CEO Andy Jassy announced on January 4. Job cuts that began last year were originally planned to affect about 10,000 jobs. , and we will continue to do so,” said Jussie. “These changes will help us pursue long-term opportunities with a stronger cost structure.”
In November, Amazon stopped hiring “new additions” for all employees.
apple
iPhone makers have suspended hiring for many non-R&D jobs, escalating plans to cut budgets for next year, according to people familiar with the matter. Breaks generally don’t apply to teams working on future devices or long-term initiatives, but they do affect some corporate functions and standard hardware and software engineering roles.
Adobe
Adobe Inc. has cut about 100 sales-focused jobs. The company has shifted some employees to other roles within the company.
chime
Digital banking startup Chime Financial Inc. is cutting staff by 12%, or 160 people. A company spokesperson said the company is well capitalized and the move will be positioned for “sustained success.”
Cisco
Cisco Systems has begun a restructuring plan that will affect approximately 5% of its workforce. The company said it will incur pre-tax charges of approximately $600 million for severance, layoffs and other costs. Employees will be given the opportunity to move on to other jobs within the company, Chief Financial Officer Scott Helen said in an interview.
“This is not about cutting our workforce. In fact, we will have about the same number of employees at the end of this fiscal year as we started,” Herren said. As of July 30, Cisco has over 83,000 employees.
coin base
Coinbase Global Inc. is cutting 60 positions due to the downturn in the cryptocurrency market. The cryptocurrency exchange announced in June that it would lay off 18% of its workforce, or about 1,200 employees.
dapper lab
Roham Gharegozlou, founder and CEO of Dapper Labs Inc., said in a letter to employees that the company has laid off 22% of its workforce. He cited the macroeconomic conditions and operational challenges resulting from the company’s rapid growth. Dapper Labs has created his NBA top shot marketplace for non-fungible tokens, a digital asset class whose demand has plummeted since the crypto market downturn.
digital currency group
Cryptocurrency conglomerate Digital Currency Group embarked on a restructuring last month, with about 10 employees leaving the company. As part of the transformation, Mark Murphy was promoted from Chief Operating Officer to President.
door dash
DoorDash Inc. has cut about 1,250 jobs, acknowledging rapid expansion during the pandemic has led to increased losses. Bloomberg reports that the cuts will affect about 6% of the company’s workforce, including US-based and non-US-based employees combined.
In a letter to employees, CEO Tony Xu said, “Our business continues to grow rapidly, but given the speed at which we hire, our operating expenses will continue to outpace our revenues. It will be,” he said.
galaxy digital
Galaxy Digital Holdings, a crypto financial services company founded by billionaire Michael Novogratz, is considering cutting 20% of its workforce. Plans are still subject to change, and the final figure he could be in the 15% to 20% range, according to people familiar with the matter. Galaxy shares have plunged more than 80% this year as part of the cryptocurrency crash.
HP
HP Inc. plans to cut up to 6,000 jobs over the next three years. In addition to cutting its workforce by about 10%, the company will reduce its real estate footprint.
intel
Intel Corp. is cutting jobs and slowing spending on new factories to save $3 billion next year, the chipmaker said. Expected to save up to $10 billion by 2025, the plan has worked well for investors, and on Oct. 28, the stock price he rose more than 10%.
Kraken
Cryptocurrency exchange Kraken has laid off 30% of its workforce amid the worsening effects of this year’s digital asset market meltdown. The Kat occupies about 1,100 people.
lift
Lyft Inc.’s cost-cutting efforts include the sale of its vehicle services business. His 13% of staff, or about 683 people, will be cut. The company had already said it would freeze U.S. hiring until at least next year. We are now facing even more severe headwinds.
“We are not immune to the realities of inflation and an economic slowdown,” co-founders John Zimmer and Logan Green said in a note. We need a period where we can do better, and the harsh reality is that today’s actions are pushing us to do just that.”
meta
Facebook’s parent company is laying off 11,000 people, the first major layoff in the history of the social media company. Meta’s stock price has plummeted this year, with the company looking to cut costs after several quarters of disappointing earnings and declining earnings. The cuts equate to about 13% of its workforce, and Meta extends its hiring freeze through the first quarter.
“We want to be accountable for these decisions and how we got to this point,” Chief Executive Mark Zuckerberg said in a statement. “I think this is hard for everyone. I am especially sorry for those affected.”
open door
Opendoor Technologies Inc. said it will lay off about 550 employees. This is about 18% of our workforce. The company, which practices a data-driven home flip called iBuying, is dealing with slowing housing demand due to rising mortgage rates.
Peloton
Peloton Interactive Inc. laid off 500 employees worldwide in October, or about 12% of its workforce. This is the fourth time the company has cut staff. Peloton said the move, along with other cost-cutting measures, will help it reach break-even cash flow by the end of fiscal 2023.
“We know many of you are angry, frustrated and emotionally drained by today’s news, but we are committed to saving the peloton,” CEO Barry McCarthy said in an October memo. “Our goal is to control our own destiny and ensure the future viability of our business.”
plaid
Plaid Inc. cuts 260 jobs to cut costs. The fintech company will provide his 16-week severance pay and encourage equity grants for some employees, CEO Zach Perret said in a memo to employees.
Qualcomm
Qualcomm Inc. said it was freezing hiring after demand for mobile phones using its chips fell faster than expected. The company now expects smartphone shipments to fall in his double-digit range this year, worse than previous forecasts.
Salesforce
According to a Jan. 4 regulatory filing, Salesforce Inc. plans to cut about 10% of its workforce and cut back on real estate it owns. CEO Marc Benioff said in a letter to employees that he had “hired too many people” during the pandemic. The software company had about 80,000 employees.
seagate
Seagate Technology Holdings Plc, the largest maker of computer hard drives, said it is laying off about 3,000 jobs. Computer his suppliers such as Seagate and Intel have been hit hard by the slowdown in hardware spending. Customers are sitting on piles of excess inventory, which is hurting orders and weighing on Seagate’s financial performance, said his CEO, Dave Mosley. It required a cut. “We have taken swift and decisive action to respond to current market conditions and enhance long-term profitability,” he said.
stripe
Payments company Stripe Inc., one of the world’s most valuable startups, is laying off more than 1,000 jobs. The 14% headcount reduction brings headcount back to nearly 7,000, a February total. told staff that they need to cut down on
Twitter’s upheaval has more to do with its recent acquisitions and accompanying debt than with financial concerns. However, the company is currently suffering some of the most severe cuts among its peers. Elon Musk, who bought Twitter for her $44 billion, has lost about 3,700 jobs via email. Musk also reversed its policy of working from anywhere in the company and asked the remaining employees to report to the office.
On November 4, Musk tweeted, “When Twitter is losing more than $4 million a day, unfortunately, we have no choice when it comes to job cuts.”
start-up
Online lending platform Upstart Holdings said in a regulatory filing that it has cut 140 hourly employees “in view of the difficult economic situation and the decline in loan volumes on its platform.” rice field.
Vimeo
Vimeo Inc. has announced it will cut its global full-time workforce by 11%, according to a Jan. 4 regulatory filing.
(Updates with Amazon’s confirmation that the number of cuts has been increased.)
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