By the end of 2022, some IT firms have reduced their workforce due to over-hiring, volatile global macroeconomic conditions, strong tailwinds from the COVID-19 epidemic, and other factors. These corporations resumed major tech layoffs in 2023.
IANS reported that about 1 lakh techies lost their employment worldwide in January. Amazon, Microsoft, Google, Salesforce, and others dominated tech layoffs in 2022. The survey also states that over 288 tech businesses have lost over 3,300 jobs every day worldwide.
Zuckerberg calls 2023 the “year of efficiency” after job layoffs. Tech businesses that powered the 10-year bull market are cutting jobs as they adjust. Amazon recently started a new wave of job cuts that will eliminate more than 18,000 workers, the most in its 28-year history.
According to Crunchbase, about 77,000 U.S. tech workers have been laid off in mass layoffs since 2023. This week’s Dell 6,650 and Zoom 1,300 layoffs are included. As inflation and the stock market rose last year, public and private tech companies cut almost 140,000 employees.
According to Crunchbase, about 77,000 U.S. tech workers have been laid off in mass layoffs since 2023. This week’s Dell 6,650 and Zoom 1,300 layoffs are included. As inflation and the stock market rose last year, public and private tech companies cut almost 140,000 employees.
Major Tech Layoffs In 2022 & 2023
Except for Apple, most tech titans cut staff in January 2023. In January, Amazon lost 18,000 positions, Google lost 12,000, and Microsoft lost 10,000. Salesforce cut 7,000 jobs and IBM cut 3,900. Mark Zuckerberg, Meta’s founder and CEO, announced 11,000 tech layoffs in 2023.
Amazon: 18,000 Layoffs
Amazon CEO Andy Jassy announced last month that the business would lay off more than 18,000 workers, mostly in human resources and shops. In November, Amazon announced it would slash personnel, particularly in its devices and recruiting divisions.
CNBC stated that the corporation planned 10000 tech layoffs in 2022. Amazon hired a lot during COVID-19. By 2021, the corporation would have over 1.6 million employees, up from 798,000 in the fourth quarter of 2019.
Alphabet: 12,000 Layoffs
Google, controlled by Alphabet, announced 12,000 tech layoffs in 2023. Google CEO Sundar Pichai informed employees via email that the company would start U.S. layoffs immediately. He added that it “would take longer due to local laws and traditions” in other nations.
CNBC reported in November that Google employees feared major tech layoffs as competitors cut and the company changed its performance grading system. Alphabet avoided layoffs until January, when its health sciences division, Verily, laid off 240 workers.
Facebook: 11,000 Layoffs
November saw Facebook parent Meta’s largest layoffs. The corporation aims to cut 13% of its workforce or about 11,000 people.
Meta’s dismal fourth-quarter 2022 guidance erased one-fourth of its market cap and sent the stock to its lowest level since 2016.
Microsoft: 10,000 Layoffs
As sales growth slows, Microsoft is cutting 10,000 jobs through March 31. “I’m optimistic that Microsoft will emerge from this stronger and more competitive,” CEO Satya Nadella said in a statement to staff posted on the corporate website Wednesday.
Salesforce: 7,000 Layoffs
Salesforce stated on January 4 that it is shedding 10% of its staff. Salesforce co-CEO Marc Benioff wrote to staff that customers have been more “measured” in their purchases due to the adverse financial situation, which led to the “extremely difficult choice” to lay off personnel.
Tesla: 6,000 Layoffs
Elon Musk informed Tesla staff in June that 10% of salaried personnel would be laid off. Based on public filings, the Wall Street Journal anticipated 6,000 major tech layoffs.
Musk tweeted, “Tesla will reduce salaried employment by 10% as we have gotten overstaffed in several areas.”Â
Twitter: 3,700 Layoffs
According to conversations, Elon Musk fired about 3,700 Twitter employees after concluding his $44 billion purchase in late October.
After Musk revised work-from-home policies and said that he expected all employees to adhere to a “hardcore” work environment, more staff quit.
Coinbase: 2,000 Layoffs
Coinbase said on January 10 that it would eliminate around 20% of its personnel to conserve funds during the crypto market collapse.
After growing “too swiftly” during the bull market, Coinbase, which had 4,700 employees as of September, cut 18% of its workforce in June.
Stripe: 1,100 Layoffs
In November, Stripe revealed its intentions to lay off 14% of its workers, or 1,100 employees. In a note to staff, CEO Patrick Collison said the changes were required due to growing prices, recession fears, higher interest rates, tighter investment budgets, and scarce startup funding.
Robinhood: 1,100 Layoffs
After lowering it by 9% in April, Robinhood reduced it by 23% in August. Public filings indicate over 1,100 employees.
Robinhood CEO Vlad Tenev cited “deterioration of the macro situation, with inflation at 40-year highs accompanied by a broad crypto market crash.”
Shopify: 1,000 Layoffs
Shopify let go of 1,000 employees—10% of its global workforce—in July. In a note to colleagues, CEO Tobi Lutke said he underestimated the pandemic-driven e-commerce surge and claimed the company has suffered from a larger drop in online spending.
Lyft: 700 Layoffs
CEO Logan Green and President John Zimmer wrote to staff about “a predicted recession sometime in the next year” and growing ride-share insurance expenses.
The ride-hailing startup promised laid-off workers 10 weeks of salary and health care through April.
Crypto.com: 500 Layoffs
Crypto.com announced 20% major tech layoffs on January 13. PitchBook data shows 2,450 employees, implying 490 layoffs.
In a blog post, CEO Kris Marszalek stated the crypto exchange grew “ambitiously” but couldn’t survive Sam Bankman-FTX Fried’s collapse without the layoffs.
Netflix: 450 Layoffs
The streaming service cut 150 workers in May. Late June saw 300 more layoffs. Netflix told employees, “While we continue to invest significantly in the business, we made these modifications so that our costs will not grow with our slower revenue growth.”
Conclusion
Startups face a cold market as venture capital dries up due to a culture of high valuations. Major tech giants have to perform tech layoffs in 2022-2023, claiming overhiring after rapid expansion. Tech companies are cutting jobs rapidly as spending slows and the economy falters.
The 2020 COVID-19 pandemic lockdowns boosted internet spending and remote work for big digital enterprises. As client behavior normalizes, many of these enterprises are experiencing poor growth. Their bosses are cutting costs because they expanded too quickly.
Kindly share your opinion regarding these massive tech layoffs in 2022 and 2023.
