Microsoft CEO Satya Nadella speaks at the company’s Ignite Spotlight event on November 15, 2022 in Seoul.
SeongJoon Cho | Bloomberg | Getty Images
Tech job cuts are on the rise as companies that led a 10-year bull market adjust to a new reality.
Microsoft said Wednesday that it is laying off 10,000 workers, which will reduce the company’s workforce by less than 5%. Amazon also began a new round of job cuts expected to cut more than 18,000 jobs and make it the largest workforce reduction in the e-retailer’s 28-year history.
The layoffs come at a time of slowing growth, high interest rates to fight inflation and fears of a possible recession next year.
Here are some of the major layoffs in the tech industry so far. All figures are estimates based on documents, public statements and media reports:
Microsoft: 10,000 jobs cut
Microsoft is cutting 10,000 jobs by March 31 as the software maker slows revenue growth. The company also receives a $1.2 billion payment.
“I am confident that Microsoft will emerge from this situation stronger and more competitive,” CEO Satya Nadella said in a letter to employees posted on the company’s website on Wednesday. Some workers will learn this week that they have lost their jobs, he wrote.
Amazon: 18,000 jobs cut
Earlier this month Amazon Chief executive Andy Jassy said the company plans to lay off more than 18,000 employees, primarily in its human resources and stores divisions. It comes after Amazon said in November that it was looking to cut staff, including at its devices and recruiting organizations. CNBC reported at that time that the company wants to lay off about 10,000 employees.
Amazon has gone on a hiring spree during the Covid-19 pandemic. The company’s global workforce has grown from 798,000 in the fourth quarter of 2019 to more than 1.6 million by the end of 2021.
Alphabet (Direct): 230 jobs cut
Google parent company Alphabet Verily, the health sciences division, averted layoffs until January when it cut 15% of its workforce. Google itself hasn’t made any significant layoffs since Jan. 18, but employees are increasingly worried that the ax is coming down soon.
Crypto.com: 500 jobs cut
Crypto.com announced on January 13 that it plans to cut 20% of its workforce. The company had 2,450 employees, according to PitchBook data, which shows about 490 layoffs.
CEO Kris Marszalek said in a blog post that the cryptocurrency is growing “ambitiously,” but that Sam Bankman-Fried’s crypto empire FTX cannot afford to collapse without further cuts.
“All affected personnel have already been notified,” Marszalek said in a post.
Coinbase: 2,000 jobs cut
On January 10 Coinbase has announced plans to cut about a fifth of its workforce as it seeks to conserve cash during the cryptocurrency market downturn.
The exchange plans to reduce 950 According to a blog post, work. Coinbase, which had about 4,700 employees by the end of September, cut 18% of its workforce in June, saying it needed to manage costs after growing “too quickly” during the bull market.
CEO Brian Armstrong told CNBC in a phone interview at the time: “In retrospect, we should have done more.” “The best thing you can do is react quickly once information becomes available, and that’s what we’re doing in this case.”
Salesforce: 7,000 job cuts
Salesforce is cutting 10% of its workforce and cutting some office space as part of a restructuring plan, the company announced on January 4. As of December, it employed more than 79,000 workers.
In a letter to employees, CEO Marc Benioff said that customers are becoming more “weighted” in purchasing decisions given the difficult macroeconomic environment that led Salesforce to make the “very difficult decision” to lay off employees.
Salesforce said it would record $1 billion to $1.4 billion in headcount reductions and $450 million to $650 million in office space reductions.
Meta: 11,000 jobs cut
Facebook parent Meta In November, it announced its most significant round of layoffs ever. The company said it plans to lay off 13% of its workforce, or more than 11,000 workers.
Meta‘s disappointing guidance for the fourth quarter of 2022 wiped off a quarter of the company’s market cap and sent the stock to its lowest level since 2016.
The tech giant’s layoffs come after it increased its workforce by nearly 60% during the pandemic. Competition from rivals such as TikTok, widespread declines in online ad spending, and problems with Apple’s iOS changes hurt the business.
Twitter: 3,700 jobs cut
Lyft: 700 jobs cut
Lyft announced in November that it was cutting 13% of its workforce, or about 700 jobs. In a letter to employees, CEO Logan Green and President John Zimmer hinted at a “probable recession sometime next year” and rising car-equity insurance costs.
It promised laid-off workers 10 weeks of pay, health insurance until the end of April, accelerated equity entitlements for the Nov. 20 vesting date, and hiring assistance. Employees who have been with the company for more than four years will receive an additional four weeks of pay.
Lane: 1100 jobs were cut
Online payments giant Stripe announced plans to lay off about 14% of its workforce (about 1,100 employees) in November.
CEO Patrick Collison wrote in a memo to staff that the cuts were necessary amid rising inflation, fears of a looming recession, high interest rates, energy shocks, tighter investment budgets and less startup funding. Taken together, these factors point to “2022 representing the beginning of a different economic climate,” he said.
Stripe was valued at $95 billion last year and lowered its intrinsic value to $74 billion in July.
Shopify: 1,000 jobs cut
In July, Shopify announced it was laying off 1,000 employees, equivalent to 10% of its global workforce.
CEO Toby Lutke admitted in a memo to staff that he had misjudged how long the pandemic-driven e-commerce boom would last, and said the company was facing a broader pullback in online spending. Its stock price has fallen by 78% in 2022.
Netflix: 450 jobs cut
Netflix announced two rounds of layoffs. In May, the streaming service cut 150 jobs after the company reported its first subscriber loss in a decade. In late June, he announced another 300 layoffs.
“While we continue to invest significantly in the business, we have made these adjustments so that our costs increase in line with our slower revenue growth,” Netflix said in a statement to employees.
Snap: 1,000 jobs cut
In late August, Snap announced that it was cutting 20% of its workforce, which equates to more than 1,000 employees.
Snap CEO Evan Spiegel has told employees that the company needs to restructure its business to overcome its financial difficulties. He said the company’s annual quarterly revenue growth rate of 8% was “well below what we expected earlier this year.”
Robinhood: 1,100 jobs cut
Retail brokerage firm Robinhood cut 23% of its workforce in August after cutting 9% of its workforce in April. That’s more than 1,100 employees, according to public documents and reports.
Robinhood CEO Vlad Tenev blamed the “deteriorating macro environment, accompanied by inflation reaching a 40-year high and the collapse of the broader cryptocurrency market.”
Tesla: 6,000 jobs cut
in June, Tesla CEO Elon Musk sent an email to all employees and wrote that the company is laying off 10% of salaried employees. The Wall Street Journal estimated the layoffs would affect about 6,000 workers, based on public filings.
“Tesla will cut salaried employees by 10% as we become overstaffed in many areas,” Musk wrote. “Note that this doesn’t really apply to anyone building cars, battery packs, or installing solar. Hourly workers will increase.”