Many tech companies have announced cost-cutting measures for 2022, and Amazon, Apple and Google’s parent company Alphabet have all announced hiring slowdowns or freezes.
For the tech sector, the pandemic boom turned into a post-pandemic collapse, with rising interest rates hurting stocks and inflation weighing on earnings.
The sector lost 9,587 jobs in October, the highest monthly total since November 2020, according to data from consulting firm Challenger, Gray & Christmas. bloomberg.
Total job cuts announced by US-based employers in October increased 13% to 33,843, the highest since February 2021, according to the report.
Facebook’s parent company announced in November that it would cut 13% of its workforce, or more than 11,000 jobs, in one of the biggest tech layoffs of the year to combat a sluggish advertising market and rising costs.
Meta cut 13% of its workforce, or more than 11,000 people, in November 2022.
Like its peers, Meta hired aggressively during the pandemic to respond to the surge in social media usage by homebound consumers.
But the pandemic boom faded as advertisers and consumers stopped spending in the face of rising costs and rapidly rising interest rates.
After investing billions in CEO Mark Zuckerberg’s vision for the Metaverse, Meta is facing rising costs and shrinking profits.
Meta, once worth over $1 trillion, lost about 70% of its value in the last year alone. The stock will rebound in 2023, but remains below its early March peak.
In a message to employees, Zuckerberg said, “Not only has online commerce returned to previous trends, but the macroeconomic downturn, increased competition and the loss of advertising signals have also caused our revenues to fall far below expectations. rice field.
“I got this wrong and I take responsibility for it.”
Zuckerberg delivered tough news about job cuts in a call with hundreds of meta executives
In a short phone call, a red-eyed Zuckerberg spoke to the employee but didn’t answer questions.
He stuck to a script that closely followed the wording of the morning’s blog post, calling the increased investment in e-commerce “a big mistake in planning.”
Following its $44 billion acquisition by Elon Musk, Twitter laid off half of its workforce across teams ranging from communications and content curation to product and engineering.
About 3,700 employees affected by the layoffs learned their fate in an email last week.
Twitter laid off half of its workforce across teams, from communication and content curation to product and engineering
Musk has previously said he had no choice but to impose mass layoffs because the company is losing hundreds of millions of dollars each year and needs a financial overhaul.
In January, cloud-based software company Salesforce announced it would furlough 10% of its workforce, or about 8,000 employees.
CEO Marc Benioff cited rough times for the tech sector and the overhiring during COVID-19 that led to the decision.
“Our sales performance process fosters accountability. Unfortunately, it can put them out of business and we support them through their transition.
Salesforce is the largest employer in the San Francisco area with 73,541 employees at the beginning of last year.
The company said in an August filing that it had increased its headcount by 36% over the past year “to meet higher demand for its services from customers.”
Amazon said it would lay off 18,000 corporate and tech jobs, the largest layoff in the company’s history.
The move comes as the company reportedly lost $1 trillion in the year after its stock price plummeted during the pandemic.
If Amazon implements its proposal to cut 10,000 jobs, it will lose about 3% of its corporate workforce.
The move comes after the company placed a hiring freeze, impacting key teams like Prime Video, Alexa and Amazon Fresh.
“We are facing an unusual macroeconomic environment and want to balance hiring and investment with consideration of this economy,” said Beth, Senior Vice President of People Experience and Technology at Amazon. Galletti wrote in a note..
Intel Chief Executive Pat Gelsinger told Reuters that “employee behavior” will be part of the cost-cutting plan.
The company recently announced that it will cut costs by $3 billion in 2023, increasing to $10 billion by 2025.
The adjustments are expected to begin in the fourth quarter, Gelsinger said, but did not specify how many employees will be affected.
Some Intel divisions, including sales and marketing groups, could be cut by up to 20%. bloomberg news I reported it last month, citing people with knowledge of the situation.
Chip maker Intel is reportedly planning massive job cuts, possibly thousands, in the face of a slowdown in the personal computer market.
The company had 113,700 employees in July, when it lowered its full-year revenue guidance by $11 billion after a disappointing second quarter.
Santa Clara, Calif.-based Intel declined to comment on the job cuts when contacted by DailyMail.com in October.
Intel has been plagued by changing market trends, such as the decline of traditional personal computers as smartphones and tablets become more popular.
Last quarter, global PC shipments, including desktops and laptops, fell another 15% year-over-year. IDC.
Microsoft began furloughing 10,000 employees in January, citing slowing customer demand and a deteriorating economic environment.
In a company memo, CEO Satya Nadella said, “With some parts of the world in recession and some anticipating it, organizations in every industry and region are on alert. there is,” he said.
The layoffs affected nearly 5% of Microsoft’s global workforce.
According to Axios, Microsoft laid off fewer than 1,000 employees in several divisions last year.
“Like all companies, we regularly assess our business priorities and make structural adjustments accordingly,” a Microsoft executive said in a statement.
Microsoft laid off fewer than 1,000 employees in several divisions last month, according to Axios
“We will continue to invest in our business and hire in key growth areas.”
Microsoft executives had previously announced in July that the company would lay off less than 1% of its workforce and significantly delay hiring after earnings fell short of investor expectations.
The company, which only posted $51.9 billion in revenue in the second quarter of this year, was expected to make $52.4 billion.
The company had previously seen blockbuster growth during the COVID pandemic as consumers and businesses turned to its products as they transitioned to a work-from-home model.
Ride-hailing company Lyft said it would furlough 13% of its workforce, or about 683 workers, after already cutting 60 jobs in September and freezing jobs.
Lyft said in regulatory filings it will likely incur $27 million to $32 million in restructuring costs related to the layoffs.
“We are not immune to the reality of inflation and a slowing economy,” the Lyft founder said in a memo to employees.
Ride-hailing company Lyft has announced it will furlough 13% of its workforce, or about 683 employees, after already laying off 60 people earlier this year.
The company’s stock has fallen 76% year-to-date, falling from nearly $45 in January 2022 to $9.75 on March 6.
Lyft has about 4,000 employees, excluding drivers.
The music streaming service announced plans on Jan. 22 to cut 6% of its estimated 588 employees from its 9,800 full-time staff.
Spotify says it will incur approximately $38 million in retirement-related expenses.
The company, led by CEO Daniel Ek, also said its chief content and advertising business officer, Dawn Ostroff, is also stepping down.
On January 22nd, Spotify announced plans to cut 6% of its workforce, or an estimated 588 employees.
Apple has yet to announce any major job cuts, but CEO Tim Cook said. CBS Morning Some jobs are also slowing, he said.
“What we’re doing as a result of this period is that we’re very cautious about hiring,” he said. They are not hiring everywhere.”
At the same time, however, Cook said, “I don’t believe we can save the road to prosperity.”
“We think you’re invested in it,” he said.