NEWYORK: lay off start in 2022 is picking up speed across a number of tech companies.
The tech industry is cutting jobs at a rate close to the early days of the Covid-19 pandemic. In November, the most recent month for which data is available, the sector announced cuts of 52,771, for a total of 80,978 this year, according to consulting firm Challenger, Gray & Christmas Inc. That’s the highest monthly total for the industry since the company started keeping data in 2000.
After a bumpy start to the pandemic in 2020, tech companies have benefited from a boom in spending on e-commerce and explosive remote work, followed by a massive hiring wave. Now, things seem different. In recent earnings reports, Alphabet Inc, Meta Platforms Inc, Microsoft Corp and others missed estimates, sending shares plunging. Because Amazon.com Inc and Sales force Inc., outlook looks to get worse as it continues to lay off workers deeper into early 2023. Other companies are counting the volatility. electronic money a sudden drop in market or demand.
Here is a list of those who are cutting jobs and stopping hiring:
Amazon
The e-commerce giant is laying off 18,000 employees, CEO Andy Jassy announced on Jan. 4. The cuts, which began last year, were originally planned to affect about 10,000 jobs. .
“Amazon has weathered difficult and uncertain economies in the past, and we will continue to do so,” Jassy said. “These changes will help us pursue long-term opportunities with a stronger cost structure.”
In November, Amazon halted “new incremental” hiring in the company’s workforce.
Apple
The iPhone maker has halted hiring for many jobs outside of research and development, an escalation in its budget cuts for next year, according to people with knowledge of the matter. The time off generally doesn’t apply to teams working on future devices and long-term initiatives, but it does affect some company functions as well as hardware engineering roles. and standard software.
adobe
Adobe Inc has eliminated about 100 jobs, focusing on sales. The company has moved some employees to other roles internally.
Chime
Digital banking startup Chime Financial Inc is cutting 12% of its staff, or 160 people. The spokesperson said the company remains well-capitalized and the move will help the company achieve “sustained success”.
Cisco
Cisco Systems is beginning a restructuring plan that will affect about 5% of employees. The company said it would incur pre-tax charges of about $600 million for severance, termination and other costs. Chief Financial Officer Scott Herren said in an interview that employees will have the opportunity to move on to other jobs within the company.
“This is not about reducing our workforce — in fact, we will have roughly the same headcount at the end of this financial year as when we started,” Herren said. Cisco has more than 83,000 employees as of July 30.
Coinbase
Coinbase Global Inc is eliminating 60 positions as the crypto market tumbles. The cryptocurrency exchange announced in June that it would be laying off 18% of its workforce, or about 1,200 employees.
Dapper’s Laboratory
The founder and CEO of Dapper Labs Inc, Roham Gharegozlou, said in a letter to employees that the company has laid off 22% of employees. He cited macroeconomic conditions and operational challenges stemming from 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
Cryptocurrency conglomerate Digital Currency Group embarked on a restructuring last month with about 10 employees leaving the company. As part of the reshuffle, Mark Murphy was promoted to chairman from chief executive officer.
DoorDash
DoorDash Inc is cutting about 1,250 jobs, acknowledging that rapid expansion during the pandemic has resulted in growing losses. The cuts will affect about 6% of the company’s workforce, which includes both US and non-US employees, Bloomberg reports.
CEO Tony Xu wrote in a letter to employees: “Although our business continues to grow rapidly, with how fast we hire, our operating costs – if not down – will continue to outpace our revenue.”
digital galaxy
Galaxy Digital Holdings Ltd., the crypto financial services company founded by billionaire Michael Novogratz, is considering eliminating up to 20% of its workforce. Plans are still subject to change, and the final figure could range from 15% to 20%, according to people familiar with the matter. Galaxy shares have plummeted more than 80% this year, partly to blame for the cryptocurrency’s downtrend.
HP
HP Inc will cut up to 6,000 jobs over the next three years as falling demand for personal computers dents profits. In addition to reducing the workforce by about 10%, the company will reduce its real estate footprint.
clever
Intel Corp is cutting jobs and reducing spending on new factories in a bid to save $3 billion next year, the chipmaker said. The hope is to save up to $10 billion by 2025, a plan that has worked well with investors, who sent stocks up more than 10% on Oct. 28. Bloomberg News reported It was previously believed that the reduced number of employees could be in the thousands.
Kraken
Cryptocurrency exchange Kraken is laying off 30% of its workforce as the fallout from this year’s digital asset market crisis worsens. The number of people being cut accounted for about 1,100 people.
Lyft
Lyft Inc’s cost-saving efforts include divesting from the vehicle services business. It is shedding 13% of its staff, or about 683 people. The company has said it will freeze hiring in the US until at least next year. Now it is facing even tougher headwinds.
“We are not immune to the fact that inflation and the economy are slowing,” co-founders John Zimmer and Logan Green said in a memo. “We need 2023 to be a time when we can perform better without having to change our plans to deal with external events — and the hard reality is that actions today have helped us We can do that.”
meta
Facebook’s parent company is cutting 11,000 jobs, the first major layoff in the social media company’s history. Meta shares have tumbled this year and the company is trying to cut costs after several quarters of disappointing earnings and falling revenue. The cuts equate to about 13% of the workforce, and Meta will extend the hiring freeze in 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 difficult for everyone and I’m especially sorry for those affected.”
Open door
Opendoor Technologies Inc said it is laying off about 550 employees – about 18% of the company’s total staff. The company that makes a data-driven spin on home sales, called iBuying, is dealing with slowing housing demand due to higher mortgage rates.
dove
Peloton Interactive Inc laid off 500 employees globally, or about 12% of its workforce, in October. This is the fourth time this year the company has cut staff. Along with other cost-cutting measures, Peloton said the move will help it break even in terms of 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 know that this is a necessary step if we are to save Peloton, and we are in the process. do so,” CEO Barry McCarthy said in an October memo. “Our goal is to take control of our own destiny and ensure the future viability of our business. “
striped
Plaid Inc cut 260 employees to reduce costs. CEO Zach Perret said in a memo to employees, the fintech company will provide 16 weeks of severance pay and accelerate equity benefits for some employees.
Qualcomm
Qualcomm Inc said it had frozen hiring in response to a faster-than-expected drop in demand for phones using its chips. They now expect smartphone shipments to fall in the double-digit percentage range this year, worse than the outlook they gave earlier.
Sales force
Salesforce Inc will cut about 10 percent of its workforce and reduce its real estate holdings, according to a regulatory filing on Jan. 4. Chief Executive Officer Marc Benioff said in a letter to employees, “We will I hired too many people” during the pandemic. The software company has about 80,000 employees.
Seagate
Seagate Technology Holdings Plc, the largest maker of computer hard drives, said it is cutting about 3,000 jobs. PC vendors, including Seagate and Intel, have been hit hard by slowing hardware spending. Customers are sitting on a pile of inventory, affecting orders and affecting Seagate’s financial performance, CEO Dave Mosley said. That needs to be cut. “We have taken swift and decisive actions to respond to current market conditions and enhance long-term profitability,” he said.
Stripes
Payments company Stripe Inc, one of the world’s most valuable startups, is cutting more than 1,000 jobs. The 14% staff cut would bring the headcount back to nearly 7,000 – the total by February. Co-founders Patrick and John Collison told employees they needed to cut costs more widely as they prepared for “tougher times.”
Twitter
The upheaval at Twitter has more to do with its recent acquisition — and the debt that comes with it — than economic concerns. But the company has suffered some of the deepest cuts of its peers right now. Elon Musk, who bought Twitter for $44 billion, has eliminated about 3,700 email jobs. Musk also reversed the company’s work-from-anywhere policy, requiring remaining employees to report back to the office.
“Regarding Twitter’s effectiveness cuts, unfortunately there is no other option as the company is losing more than $4 million/day,” Musk tweeted on Nov.
start
Upstart Holdings Inc, an online lending platform, said in a regulatory filing that it was cutting 140 hourly employees “due to the challenging economy and lending volume on our platform.” I fell”.
Vimeo
Vimeo Inc announced it would cut 11% of its full-time workforce globally, according to a Jan. 4 regulatory filing.
The tech industry is cutting jobs at a rate close to the early days of the Covid-19 pandemic. In November, the most recent month for which data is available, the sector announced cuts of 52,771, for a total of 80,978 this year, according to consulting firm Challenger, Gray & Christmas Inc. That’s the highest monthly total for the industry since the company started keeping data in 2000.
After a bumpy start to the pandemic in 2020, tech companies have benefited from a boom in spending on e-commerce and explosive remote work, followed by a massive hiring wave. Now, things seem different. In recent earnings reports, Alphabet Inc, Meta Platforms Inc, Microsoft Corp and others missed estimates, sending shares plunging. Because Amazon.com Inc and Sales force Inc., outlook looks to get worse as it continues to lay off workers deeper into early 2023. Other companies are counting the volatility. electronic money a sudden drop in market or demand.
Here is a list of those who are cutting jobs and stopping hiring:
Amazon
The e-commerce giant is laying off 18,000 employees, CEO Andy Jassy announced on Jan. 4. The cuts, which began last year, were originally planned to affect about 10,000 jobs. .
“Amazon has weathered difficult and uncertain economies in the past, and we will continue to do so,” Jassy said. “These changes will help us pursue long-term opportunities with a stronger cost structure.”
In November, Amazon halted “new incremental” hiring in the company’s workforce.
Apple
The iPhone maker has halted hiring for many jobs outside of research and development, an escalation in its budget cuts for next year, according to people with knowledge of the matter. The time off generally doesn’t apply to teams working on future devices and long-term initiatives, but it does affect some company functions as well as hardware engineering roles. and standard software.
adobe
Adobe Inc has eliminated about 100 jobs, focusing on sales. The company has moved some employees to other roles internally.
Chime
Digital banking startup Chime Financial Inc is cutting 12% of its staff, or 160 people. The spokesperson said the company remains well-capitalized and the move will help the company achieve “sustained success”.
Cisco
Cisco Systems is beginning a restructuring plan that will affect about 5% of employees. The company said it would incur pre-tax charges of about $600 million for severance, termination and other costs. Chief Financial Officer Scott Herren said in an interview that employees will have the opportunity to move on to other jobs within the company.
“This is not about reducing our workforce — in fact, we will have roughly the same headcount at the end of this financial year as when we started,” Herren said. Cisco has more than 83,000 employees as of July 30.
Coinbase
Coinbase Global Inc is eliminating 60 positions as the crypto market tumbles. The cryptocurrency exchange announced in June that it would be laying off 18% of its workforce, or about 1,200 employees.
Dapper’s Laboratory
The founder and CEO of Dapper Labs Inc, Roham Gharegozlou, said in a letter to employees that the company has laid off 22% of employees. He cited macroeconomic conditions and operational challenges stemming from 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
Cryptocurrency conglomerate Digital Currency Group embarked on a restructuring last month with about 10 employees leaving the company. As part of the reshuffle, Mark Murphy was promoted to chairman from chief executive officer.
DoorDash
DoorDash Inc is cutting about 1,250 jobs, acknowledging that rapid expansion during the pandemic has resulted in growing losses. The cuts will affect about 6% of the company’s workforce, which includes both US and non-US employees, Bloomberg reports.
CEO Tony Xu wrote in a letter to employees: “Although our business continues to grow rapidly, with how fast we hire, our operating costs – if not down – will continue to outpace our revenue.”
digital galaxy
Galaxy Digital Holdings Ltd., the crypto financial services company founded by billionaire Michael Novogratz, is considering eliminating up to 20% of its workforce. Plans are still subject to change, and the final figure could range from 15% to 20%, according to people familiar with the matter. Galaxy shares have plummeted more than 80% this year, partly to blame for the cryptocurrency’s downtrend.
HP
HP Inc will cut up to 6,000 jobs over the next three years as falling demand for personal computers dents profits. In addition to reducing the workforce by about 10%, the company will reduce its real estate footprint.
clever
Intel Corp is cutting jobs and reducing spending on new factories in a bid to save $3 billion next year, the chipmaker said. The hope is to save up to $10 billion by 2025, a plan that has worked well with investors, who sent stocks up more than 10% on Oct. 28. Bloomberg News reported It was previously believed that the reduced number of employees could be in the thousands.
Kraken
Cryptocurrency exchange Kraken is laying off 30% of its workforce as the fallout from this year’s digital asset market crisis worsens. The number of people being cut accounted for about 1,100 people.
Lyft
Lyft Inc’s cost-saving efforts include divesting from the vehicle services business. It is shedding 13% of its staff, or about 683 people. The company has said it will freeze hiring in the US until at least next year. Now it is facing even tougher headwinds.
“We are not immune to the fact that inflation and the economy are slowing,” co-founders John Zimmer and Logan Green said in a memo. “We need 2023 to be a time when we can perform better without having to change our plans to deal with external events — and the hard reality is that actions today have helped us We can do that.”
meta
Facebook’s parent company is cutting 11,000 jobs, the first major layoff in the social media company’s history. Meta shares have tumbled this year and the company is trying to cut costs after several quarters of disappointing earnings and falling revenue. The cuts equate to about 13% of the workforce, and Meta will extend the hiring freeze in 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 difficult for everyone and I’m especially sorry for those affected.”
Open door
Opendoor Technologies Inc said it is laying off about 550 employees – about 18% of the company’s total staff. The company that makes a data-driven spin on home sales, called iBuying, is dealing with slowing housing demand due to higher mortgage rates.
dove
Peloton Interactive Inc laid off 500 employees globally, or about 12% of its workforce, in October. This is the fourth time this year the company has cut staff. Along with other cost-cutting measures, Peloton said the move will help it break even in terms of 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 know that this is a necessary step if we are to save Peloton, and we are in the process. do so,” CEO Barry McCarthy said in an October memo. “Our goal is to take control of our own destiny and ensure the future viability of our business. “
striped
Plaid Inc cut 260 employees to reduce costs. CEO Zach Perret said in a memo to employees, the fintech company will provide 16 weeks of severance pay and accelerate equity benefits for some employees.
Qualcomm
Qualcomm Inc said it had frozen hiring in response to a faster-than-expected drop in demand for phones using its chips. They now expect smartphone shipments to fall in the double-digit percentage range this year, worse than the outlook they gave earlier.
Sales force
Salesforce Inc will cut about 10 percent of its workforce and reduce its real estate holdings, according to a regulatory filing on Jan. 4. Chief Executive Officer Marc Benioff said in a letter to employees, “We will I hired too many people” during the pandemic. The software company has about 80,000 employees.
Seagate
Seagate Technology Holdings Plc, the largest maker of computer hard drives, said it is cutting about 3,000 jobs. PC vendors, including Seagate and Intel, have been hit hard by slowing hardware spending. Customers are sitting on a pile of inventory, affecting orders and affecting Seagate’s financial performance, CEO Dave Mosley said. That needs to be cut. “We have taken swift and decisive actions to respond to current market conditions and enhance long-term profitability,” he said.
Stripes
Payments company Stripe Inc, one of the world’s most valuable startups, is cutting more than 1,000 jobs. The 14% staff cut would bring the headcount back to nearly 7,000 – the total by February. Co-founders Patrick and John Collison told employees they needed to cut costs more widely as they prepared for “tougher times.”
The upheaval at Twitter has more to do with its recent acquisition — and the debt that comes with it — than economic concerns. But the company has suffered some of the deepest cuts of its peers right now. Elon Musk, who bought Twitter for $44 billion, has eliminated about 3,700 email jobs. Musk also reversed the company’s work-from-anywhere policy, requiring remaining employees to report back to the office.
“Regarding Twitter’s effectiveness cuts, unfortunately there is no other option as the company is losing more than $4 million/day,” Musk tweeted on Nov.
start
Upstart Holdings Inc, an online lending platform, said in a regulatory filing that it was cutting 140 hourly employees “due to the challenging economy and lending volume on our platform.” I fell”.
Vimeo
Vimeo Inc announced it would cut 11% of its full-time workforce globally, according to a Jan. 4 regulatory filing.
