The high-flying tech industry is footing the bill as the economy slows and customers turn to spending.
In the past month alone, technology companies have cut nearly 50,000 jobs, changing the timing of the hiring boom.As millions of Americans move their lives online. Google-parent Alphabet is the latest to cut its headcount. on Friday, or about 6% of the global workforce.
And when it comes to layoffs, most tech companies are significantly larger than they were three years ago. But industry analysts expect more industry cuts in 2023 as the Federal Reserve continues to raise interest rates as it puts the brakes on economic growth.
This year, “the main theme is technology cuts, because after a decade of high growth, now it comes to the reality of cost savings in Silicon Valley,” analysts at Wedbush said in a research note on Friday.
It’s too soon to tell what experts say it means for tech workers. Despite the layoff announcements, employment in the information sector grew most of last year, only slowing in December. That suggests that demand for talent is strong enough that more tech workers can find new jobs.
“As layoffs from high-profile firms make headlines, many organizations are desperate for more workers, especially technology workers. Those workers are in high demand at nonprofits from the auto industry to the Department of Veterans Affairs,” he said. Robert Frick, corporate economist at Navy Federal Credit Union.
“The labor market is still so tight that many tech workers and other skilled workers are caught well before they need to collect an unemployment check. And they can be snapped up by smaller companies that are much more in demand than major corporations.”
The technology slowdown is unusual in the tightest labor market in decades and has allowed many workers to retain higher wages. Around the economy, layoffs announced last year were the second-lowest in 30 years after 2021, tracked by turnaround firm Challenger, Gray & Christmas.
But while overall layoffs have decreased, tech layoffs have increased, with 1 in 4 layoffs recorded in the technology sector last year.
Here are the big tech companies that will be announcing cuts starting in 2022.
Google parentIt will lay off 12,000 workers in January, or about 6% of its 186,000-strong global workforce. The discounts “apply across the board – across product areas, functions, levels and regions,” CEO Sundar Pichai said this week.
Pichai told employees that the Silicon Valley company simply hired quickly during the pandemic.
“We have seen tremendous growth over the past two years,” Pichai wrote in an email posted on the company’s news blog. “To accommodate and fuel that growth, we employ a different economic reality than we face today.”
The e-commerce company said it will cut about 18,000 positions, which began in November and will continue this year. This is a fraction of its 1.5 million strong global workforce.
While most of the company’s employees work in its vast warehousing and logistics operations — which have doubled in size during the pandemic — the cuts will affect white-collar workers in some of the company’s less profitable sectors, including a division in the voice assistant. , Alexa.
The online car seller cut about 2,500 jobs in May, or 12 percent of its workforce. It was the company.As for the handling of job cuts, many of them were done through zooming and email.
The Phoenix-based company, which sells new and used cars to buyers, attributed the decline to an “automotive downturn.”
Cryptocurrency trading platformOr about 950 jobs in January. It is the second round in less than a year and 1,100 workers have lost their jobs .
Ride-Power Services said it was cutting 13 percent of its workforce, or 700 workers, in November. Because Lyft’s army of drivers is considered an independent business, not employees of the transportation company, the penalty affects the company’s employees.
Facebook’s parent company in NovemberAbout 13% of the workforce. Meta has struggled more than many tech companies this year; CEO Mark Zuckerberg has shocked investors by spending billions to build what he calls the “metaverse.” The company’s stock is gone After peaking in August 2021.
The software company said in January it would cut about 10,000 jobs, about 5% of its workforce, as it refocuses its strategy on artificial intelligence and away from hardware. In the two years to June 2022, Microsoft has grown from 163,000 employees to 221,000.
The company, which has helped bring a new generation of investors to the market, announced in August that it would cut its headcount by 23 percent, or roughly 780 people. That’s the second round of recent layoffs at the company, which cut 9% of its workforce last year.
The organizationOr about 7,300 workers in January. It also said it was closing some offices, citing a “difficult” environment and low customer spending.
The social media platform’s parent company Snapchat said it was laying off 20% of its workforce in August. Snap’s workforce has grown to more than 5,600 employees in recent years, which means that even after laying off more than 1,000 people, Snap’s workforce will be larger than it was a year ago.
The payments processor announced in November that it was laying off nearly 1,000 employees, about 14% of its workforce. In an email to employees posted on Stripe’s website, CEO Patrick Collison said the company expects “downtime” amid a worsening economic climate.
About half of the social media platform’s 7,500 employeesAfter Tesla billionaire CEO Elon Musk acquired the service in October. An unknown number have come out against the new patent and Musk’s “ultra-hardcore” attitude.
The online shopping company announced in JanuaryOr 10% of its global workforce, as consumer demand slows following a surge in home renovations after the pandemic. It’s the second round of strike action for the Boston-based company. .
CEO Neeraj Shah said the company “simply got too big.”
“In hindsight, similar to our technology peers, we have grown our spending very rapidly over the past few years,” Shah said in a statement.