The tech cuts keep coming

Tech layoffs dominate news feeds and headlines, and layoffs are becoming more widespread.

This isn’t the first round of tech layoffs since the end of the pandemic, but this time the layoffs aren’t sector-specific. Everyone is criticized, said Roger Lee, founder of, which tracks layoffs.

“Tech layoffs at the beginning of the year were concentrated in food, transportation and finance startups — but at this point, it’s hitting all sectors of tech,” he told Yahoo Finance.

Tim Herbert, Chief Research Officer at CompTIA, said the cuts were linked to the broader macroeconomic climate, which has worsened as the Fed continues to raise interest rates to fight inflation.

“The Federal Reserve intends to slow the economy, so some degree of slowdown in the labor market is inevitable,” he said.

Yahoo Finance compiled an ongoing list of recent tech cuts — a list that will continue to grow, Lee noted: “The pain won’t end until the Fed can fight inflation.”


DoorDash ( DASH ) said on Nov. 30 that it is cutting 6% of its workforce, or 1,250 jobs. CEO Tony Xu told employees that the company has been hiring to support pandemic growth and is now cutting back to cope with reduced demand.


HP ( HP ) plans to cut 4,000 to 6,000 jobs over the next three years due to declining PC sales. The news comes nearly a year after HP announced it would cut up to 9,000 jobs.


Roku ( ROKU ) said in an SEC filing on Nov. 17 that it will cut 200 jobs. The company cited “economic conditions” in its statement as it cut about 5% of its workforce.


Amazon ( AMZN ) recently laid off 10,000 employees, roughly 3% of its corporate workforce. The e-commerce giant had earlier suspended “new incremental hiring.” [its] corporate workforce,” the company said in a statement Nov. 3. In October, the e-commerce giant stopped hiring for its retail business.

Amazon has seen strong growth during the pandemic as shoppers flock to the online retailer for everything from toilet paper to video games. But the company has overextended itself, and CEO Andy Jassy is looking for ways to cut costs, including subleasing parts of its warehouses.


Ride-sharing service Lyft ( LYFT ) is laying off 683 employees, or 13% of its workforce, the company said in a Nov. 3 filing with the Securities and Exchange Commission (SEC). This is the second time in less than a year that Lyft has passed out pink slips. In July, the company fired 60 employees from the rental department. According to Lyft, the latest move will cost the company between $27 million and $32 million in restructuring and employee layoffs and benefits.


Meta ( META ) laid off 11,000 workers in November after CEO Mark Zuckerberg said it grossly miscalculated the macroeconomic climate.

Meta’s stock has been in free fall for months as declining advertiser spending and Apple’s iOS privacy changes hit the company’s bottom line. In the 3rd quarter, the company reported its second year-over-year revenue decline. The company’s shares have only recently started to rise after declining cuts last week.

Facebook CEO Mark Zuckerberg speaks at Georgetown University, Thursday, Oct. 17, 2019, in Washington. (AP Photo/Nick Wass)

Meanwhile, Meta CEO Mark Zuckerberg is trying to turn his social media empire into a metaverse-first company. However, the switch is costing the firm billions, and he says the price will only increase in 2023.

Open door

Opendoor ( OPEN ) has laid off about 550 people, or 18% of the company’s workforce, CEO Eric Wu announced in a Nov. 2 blog post. The real estate technology company went public through a SPAC in December 2020; Shares of Opendoor are down about 84% for the year.


Chip giant Qualcomm ( QCOM ) announced a hiring freeze in response to declining smartphone sales, though it didn’t lay off employees. Qualcomm CEO Cristiano Amon announced the freeze during the company’s Q4 earnings report, during which the company released lower-than-expected guidance for Q1.

While Amon did not mention job cuts, he said the chip designer is prepared to further reduce operating costs if needed.


Snap ( SNAP ) cut about 20% of its workforce in August as it continues to struggle with slowing ad sales. The company saw revenue growth of just 6% in Q3, its slowest ever. However, daily active users grew by 19% to 363 million.

Advertisers are pulling back on ad sales as interest rates, inflation and currency fluctuations hit corporate budgets. And that, in turn, is hurting Snap’s bottom line. It’s not just ad sales. Apple’s iOS privacy changes still affect the company and other social media sites, making it harder for advertisers to specifically target potential customers.


In a Nov. 3 email to employees, Stripe CEO Patrick Collison announced that the company is cutting 14% of its total workforce. In the message, Collison explained that the payment processing company was hiring too many employees and blamed the broader macroeconomic environment for the decision.

Patrick Collison, CEO of Stripe, speaks during the Sohn Investment Conference on May 6, 2019 in New York City, U.S.  REUTERS/Brendan McDermid

Patrick Collison, CEO of Stripe, speaks during the Sohn Investment Conference on May 6, 2019 in New York City, U.S. REUTERS/Brendan McDermid

The company said it will provide affected employees with two weeks of severance pay, bonuses for 2022, paid vacation and the cash equivalent of six months of health insurance premiums.


Just a week after taking the helm at Twitter in October, Elon Musk cut the company’s workforce in half, cutting about 3,800 jobs. After the announcement, Musk said that Twitter had to take this step because it was losing $4 million a day.

Following the layoffs, Twitter reportedly asked a number of employees to return to the company because they were critical to certain operations.

Have a tip? Email Daniel Howley at Follow him on Twitter @DanielHowley.

Allie Garfinkle is a Senior Technical Reporter at Yahoo Finance. Follow him on Twitter @agarfinks.

Click here for the latest technology business news, reviews and useful articles on technology and gadgets

Read the latest financial and business news from Yahoo Finance

Source link