Microsoft CEO Satya Nadella speaks at the company’s Ignite Spotlight event in Seoul on November 15, 2022.
Cho Sung Joon | Bloomberg | Bloomberg | Getty Images
Job cuts in the tech industry are piling up as companies that have led a decade-long bull market adjust to the new reality.
microsoft said Wednesday it would let go of 10,000 employeesThis will reduce the company’s headcount by less than 5%. Amazon also started New round of job cuts This will cut more than 18,000 jobs, and is expected to be the largest layoff in the e-retailer’s 28-year history.
The job cuts come amid concerns about slowing growth, higher interest rates to fight inflation and a possible recession next year.
Below are some of the key cuts in the tech industry to date. All figures are approximations based on filings, official statements and media reports.
“We are confident that Microsoft will come out stronger and more competitive,” Chief Executive Satya Nadella said in a memo to employees. on the company website Wednesday. Some employees will find out this week if they are out of work, he wrote.
Amazon: 18,000 job cuts
early this month, Amazon CEO Andy Jassy Said The company had planned to lay off more than 18,000 employees, Mainly HR department and store department. This came after Amazon said in November that he was considering layoffs, including at the device and recruiting organisations. CNBC reported At the time, the company was laying off about 10,000 employees.
Amazon kept hiring during the Covid-19 pandemic. The company’s global workforce grew from 798,000 in the fourth quarter of 2019 to more than 1.6 million by the end of 2021.
Alphabet (Verily): 230 jobs cut
Parent company of Google alphabet had largely avoided layoffs until he was fired in January 15% of employees From Verily, its health science division.Google itself has not made any significant layoffs as of Jan. 18, but employees become more and more anxious So that the ax falls quickly.
Crypto.com announced plans to lay off 20% of its workforce on January 13th. PitchBook data suggests he has 2,450 employees at the company, with about 490 laid off.
“All affected personnel have already been notified,” Marzarek said in a post.
Coinbase: cut 2,000 people
Exchange plans to cut 950 Jobs, according to the blog post. coin basehad about 4,700 employees at the end of September, but already cut 18% of employees in June said growth was “too fast” during the bull market and they need to control costs.
“Looking back, we should have done more,” CEO Brian Armstrong said in a phone interview with CNBC at the time. “What we can do is react as soon as information becomes available, and that is what we are doing in this case.”
In a letter to employees, co-CEO Marc Benioff said that given the difficult macroeconomic environment, customers are becoming more “measured” in their purchasing decisions and that it is “extremely difficult” for Salesforce to lay off employees. “It’s a difficult decision to make,” he said.
Salesforce said it will incur charges of $1 billion to $1.4 billion related to headcount reductions and $450 million to $650 million related to office space reductions.
Meta: 11,000 job cuts
meta‘s disappointing guidance for the fourth quarter of 2022 wiped out a quarter of the company’s market capitalization, pushing the stock to its lowest level since 2016.
The tech giant’s cuts come after it expanded its workforce by about 60% during the pandemic. business hurt These include competition from rivals such as TikTok, a significant slowdown in online advertising spending, and challenges from Apple’s iOS changes.
Twitter: 3,700 jobs cut
lift announced in November. 13% cut Of its staff, or about 700 jobs. In a letter to employees, Chief Executive Officer Logan Greene and President John Zimmer warned that “a recession is likely sometime next year” and that the cost of carpool insurance is rising. pointed out that there is
For the laid-off employees, the ride-hailing company promised 10 weeks of pay, health insurance through the end of April, accelerated stock vesting through the Nov. 20 vesting date, and recruitment assistance. Employees who have been with the company for more than four years will also be paid four weeks’ salary, they added.
giant of online payments Stripe announces plans to cut workforce by about 14% We cut about 1,100 employees in November.
CEO Patrick Collison wrote: in a note to staff The cuts were necessary amid rising inflation, fears of a looming recession, rising interest rates, an energy shock, tightening investment budgets and scarce startup funding. It shows that “2022 represents the beginning of a different economic environment,” he said.
Stripe was valued at $95 billion last year, but reportedly lowered its internal valuation to $74 billion in July.
in July, Shopify has announced it has laid off 1,000 employees.which represents 10% of the global workforce.
In a memo to employees, CEO Tobi Lutke admitted that he had misjudged how long the e-commerce boom due to the pandemic would last, saying the company was experiencing a significant contraction in online spending. The company’s stock is down 78% in 2022.
Netflix: 450 jobs cut
netflix announced two layoffsDiscontinued streaming service in May 150 jobs After the company reported its first loss of subscribers in a decade. In late June, the company announced another 300 layoffs.
In a statement to employees, Netflix said, “While we continue to invest heavily in our business, we have adjusted our costs to increase in line with slower revenue growth.”
late August, Snap announced it laid off 20% of its employeeswhich equates to over 1,000 employees.
snap In a memo to employees, CEO Evan Spiegel said the company needed to restructure its operations to address financial challenges. He said the company’s quarterly year-over-year revenue growth of 8% is “well below what we expected at the beginning of the year.”
retail brokerage firm Robinhood cuts 23% of stafff. Based on official documents and reports, this equates to more than 1,100 employees, after cutting 9% of its workforce in April.
robin hood CEO Vlad Tenev condemns “Highest level of inflation in 40 years with broader cryptocurrency market crash deteriorating macro environment”
Tesla: 6,000 jobs cut
in June, Tesla CEO Elon Musk wrote in an email I told all employees that the company is cutting 10% of salaried workers.of Wall Street Journal estimates The cuts will affect about 6,000 employees, according to official documents.
“Tesla plans to cut headcount by 10% due to overstaffing in many areas,” Musk wrote. “Note that this doesn’t apply to people who actually build cars or battery packs or install solar power. Headcount per hour goes up.”
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