(Bloomberg) — Layoffs that began in 2022 have accelerated across some tech companies.
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The tech industry has been cutting jobs at a pace approaching the early days of the Covid-19 pandemic. In November, the latest month for which data is available, the sector reported 52,771 cuts, for a total of 80,978 this year, according to consulting firm Challenger, Gray & Christmas Inc. This was the highest monthly total for the industry since the company. He started keeping data in the year 2000.
After a bumpy start to the pandemic in 2020, tech companies have taken advantage of the e-commerce spending boom and remote working boom, which has led to a wave of hiring. Now, things look different. In recent earnings reports, Alphabet Inc and Meta Platforms Inc. and Microsoft Corp. And others in the estimates, which led to a decline in shares. For Amazon.com Inc. and Salesforce Inc. , the outlook appears to be worsening as they seek deeper layoffs at the start of 2023. Other companies are counting on volatile cryptocurrency markets or a sudden dip in demand.
There is a labor market conundrum at the heart of the next recession
Here is a running list of job cuts and hiring backs.
Amazon
CEO Andy Jassy announced Jan. 4 that the e-commerce giant is laying off 18,000 employees, and the cuts, which began last year, were initially slated to affect about 10,000 jobs. , and we will continue to do so,” Jassy said. “These changes will help us pursue our long-term opportunities with a stronger cost structure.”
In November, Amazon discontinued “new progressive” hiring across the company’s workforce.
an Apple
The iPhone maker has paused hiring for several positions outside of research and development, an escalation of its plan to cut budgets heading into next year, according to people familiar with the matter. The break does not generally apply to teams working on future hardware and long-term initiatives, but it does affect some company functions and standard hardware and software engineering roles.
Adobe
Adobe Inc. About 100 jobs concentrated in sales. The company has transferred some employees to other roles internally.
ringing
Chime Financial Inc. Start-up in the field of digital banking services to lay off 12% of its employees, or 160 people. A spokesperson for the company said that the company was still well capitalized and that the move would position it for “continued success”.
Cisco
Cisco Systems begins a restructuring plan that will affect about 5% of employees. The company says it will incur pretax fees of about $600 million for severance, termination and other costs. CFO Scott Herren said in an interview that employees will have the opportunity to move to other positions within the company.
“It’s not about reducing our workforce – in fact we’ll have roughly the same number of employees at the end of this fiscal year as we did when we started,” Herren said. Cisco had more than 83,000 employees as of July 30.
Coinbase
Coinbase Global Inc. From 60 positions as the cryptocurrency market plummets. The cryptocurrency exchange announced in June that it would lay off 18% of its workforce, or roughly 1,200 employees.
Dabur Laboratories
Dapper Labs Inc founder and CEO Roham Gharegozlou said in a letter to employees that the company has laid off 22% of its staff. He cited the macroeconomic conditions and operational challenges caused by the company’s rapid growth. Dapper Labs created the NBA Top Shot Marketplace for non-fungible tokens, a digital asset class that has seen a sharp drop in demand since the crypto market downturn.
Digital currency group
The cryptocurrency giant embarked on a restructuring last month that saw around 10 employees exit the company. As part of the overhaul, Mark Murphy was promoted to President from Chief Operating Officer.
DoorDash
DoorDash Inc. by cutting about 1,250 jobs, acknowledging that its rapid expansion during the pandemic has led to mounting losses. The cuts will affect about 6% of the company’s workforce, which is a mix of US-based and non-US-resident employees, according to a report from Bloomberg.
“While our business continues to grow rapidly, given how quickly we hire, our operating expenses – if left unabated – will continue to outpace our revenue,” CEO Tony Shaw wrote in a letter to employees.
Galaxy Digital
Galaxy Digital Holdings Ltd. is considering , the crypto-financial services company founded by billionaire Michael Novogratz, is disposing of up to 20% of its workforce. The plan may still be subject to change and the final number could be between 15% and 20%, according to people familiar with the matter. Shares of Galaxy have fallen more than 80% this year, as part of a rout for cryptocurrency.
HP
HP Inc. It will cut up to 6,000 jobs over the next three years as lower demand for personal computers cuts into profits. In addition to reducing its workforce by about 10%, the company will reduce its real estate footprint.
Intel
The chip maker said Intel Corp. will cut jobs and slow spending on new factories in an effort to save $3 billion next year. The hope is to save up to $10 billion by 2025, a plan that has gone down well with investors, who jumped the shares by more than 10% on Oct. 28. Bloomberg News previously reported that staff cuts could run into the thousands.
A legendary sea monster
Cryptocurrency exchange Kraken is laying off 30% of its workforce as the fallout from this year’s digital asset market crash deepens. The cuts are responsible for about 1,100 people.
lift
Lyft Inc.’s cost-saving efforts include divestment of its vehicle servicing business. It eliminates 13% of the staff, or about 683 people. The company has already said it will freeze hiring in the US until at least next year. It is now facing a more solid headwind.
“We are not immune to the realities of inflation and a slowing economy,” co-founders John Zimmer and Logan Green said in a note. “We need 2023 to be a period when we can execute better without having to change plans in response to external events – and the hard truth is that today’s actions have prepared us to do that.”
meta
Facebook’s parent is cutting 11,000 jobs, the first major round of layoffs in the social media company’s history. Meta stock is down this year, and the company is trying to cut costs after several quarters of disappointing earnings and declining revenue. The cuts equate to about 13% of the workforce, and Meta will extend its hiring freeze through the first quarter.
“I want to take responsibility for these decisions and how we got here,” CEO Mark Zuckerberg said in the statement. “I know this is hard for everyone, and I am especially sorry for those affected.”
Open door
Opendoor Technologies Inc. said: It’s laying off about 550 employees — roughly 18% of its headcount. The company, which does a data-driven spin on home flipping called iBuying, is dealing with slowing housing demand due to rising mortgage rates.
peloton
Peloton Interactive laid off 500 employees globally, or about 12% of the workforce, in October. This was the fourth time this year that the company has cut staff. Along with other expense-cutting measures, Peloton said the move will help it reach break-even on cash flow by the end of fiscal 2023.
“I know many of you will feel angry, frustrated and emotionally drained by today’s news, but please know that this is a necessary step if we are going to save the peloton, which we are,” CEO Barry McCarthy said in the October note. “Our goal is to control our own destiny and ensure continuity of work into the future.”
plaid
Plaid Inc. downgraded. 260 employees to reduce costs. CEO Zach Perrett said in a note to employees that the fintech company will offer 16 weeks of severance and accelerate stock awards for some employees.
Qualcomm
Qualcomm said it was freezing hiring in response to a faster-than-feared decline in demand for phones using its chips. It now expects smartphone shipments to fall in the double-digit range this year, which is worse than the forecast it provided earlier.
sales force
Salesforce Inc. will cut About 10% of its workforce and reducing its real estate holdings, according to a Jan. 4 regulatory filing. “We’ve hired far too many people” during the pandemic, CEO Marc Benioff said in a letter to employees. The software company had about 80,000 employees.
Seagate
Seagate Technology Holdings Plc, the largest maker of computer hard drives, says it is cutting about 3,000 jobs. Computer hardware suppliers, including Seagate and Intel, have been hit hard by slowing hardware spending. CEO Dave Mosley said customers are sitting on a pile of extra inventory, which is hurting orders and affecting Seagate’s financial performance. This necessitated cuts. “We took swift and decisive action to respond to the current market conditions and enhance profitability in the long term,” he said.
tape
Payments company Stripe Inc. , one of the world’s most valuable startups, has cut more than 1,000 jobs. The 14% reduction in headcount will bring headcount back to nearly 7,000 – the total number in February. Co-founders Patrick and John Collison told employees they needed to cut back on a larger scale as they prepared for “smaller times.”
Twitter’s turmoil has more to do with the latest acquisition – and attendant debt – than economic concerns. But the company has suffered some of the deepest downgrades from its peers at the moment. Elon Musk, who bought Twitter for $44 billion, has cut about 3,700 jobs by email. Musk also reversed the company’s work-from-anywhere policy, telling remaining employees to report to offices.
“In terms of depowering Twitter, unfortunately there is no choice when the company is losing over $4 million a day,” Musk tweeted on November 4.
cocky
Upstart Holdings Inc. said: Inc., an online lending platform, said in a regulatory filing that it had cut 140 employees every hour “due to the challenging economy and low loan volumes on our platform.”
Vimeo
Vimeo has announced that it will cut 11% of its global full-time workforce, according to a Jan. 4 regulatory filing.
(Updates with Amazon confirming an increase in the number of sales).
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