Tech layoffs dominate news feeds and headlines, and the cuts are widespread.
This isn’t the first round of tech layoffs since the pandemic ended, but this time the cuts aren’t sector-specific. Everyone gets criticized, said Roger Lee, founder of Layoffs.fyi, a site that tracks cutbacks.
“Earlier in the year, tech layoffs were concentrated in food, transportation and finance startups – but at this point it’s affecting all tech sectors,” he said. told Yahoo Finance.
CompTIA research director Tim Herbert said the cuts were tied to the broader macroeconomic climate, which has deteriorated as the Fed continues to raise rates in an attempt to fight inflation.
“The Federal Reserve remains committed to slowing the economy, so some degree of labor market slowdown is inevitable,” he said.
Yahoo Finance has compiled a rolling list of recent tech layoffs — a list that is expected to continue to grow, Lee said, noting, “The pain won’t end until the Fed is able to rein in inflation.”
DoorDash (DASH) said on November 30 that it was cutting 6% of its workforce, which represents 1,250 jobs. The company had hired staff to support its pandemic growth and is now downsizing to cope with slowing demand, CEO Tony Xu told employees.
HP (HP) plans to lay off between 4,000 and 6,000 employees over the next three years as computer sales have lagged. This news comes about a year after HP announced it would cut up to 9,000 jobs.
Roku (ROKU) said it would cut 200 jobs in a November 17 SEC filing. The company cited “economic conditions” in a statement as it reduced its workforce by around 5%.
Amazon (AMZN) recently laid off 10,000 employees, or about 3% of its workforce. The e-commerce giant previously put a damper on “additional new hires in [its] company’s workforce,” the company said in a Nov. 3 statement. In October, the e-commerce giant suspended hiring for its retail business.
Amazon has seen explosive growth during the pandemic as shoppers flocked to the online retailer for everything from toilet paper to video games. But the company has grown too big, and CEO Andy Jassy is looking for ways to cut costs, including subletting some 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 given out pink slips. In July, the company laid off 60 employees from its rental division. According to Lyft, the latest move will cost the company between $27 million and $32 million in restructuring and costs for severance and benefits.
Meta (META) laid off 11,000 workers in November as CEO Mark Zuckerberg said he grossly miscalculated the macroeconomic climate.
Shares of Meta have been in freefall for months as a drop in advertiser spending and Apple’s iOS privacy changes weigh on the company’s revenue. In the third quarter, the company posted its second year-over-year revenue decline. Shares of the company only recently started to climb, following layoffs last week.
Simultaneously, Meta CEO Mark Zuckerberg is trying to turn his social media empire into a first metaverse company. The transition, however, is costing the company billions, and the price, he says, will only increase in 2023.
Opendoor (OPEN) has laid off about 550 people, or 18% of the company’s employees, CEO Eric Wu announced in a blog post Nov. 2. The real estate technology company went public via SPAC in December 2020; Opendoor shares are down about 84% year-to-date.
Without laying off any employees, chip giant Qualcomm (QCOM) announced a hiring freeze in response to slowing smartphone sales. Qualcomm CEO Cristiano Amon announced the freeze during the company’s fourth-quarter earnings report, during which the company revealed lower-than-expected guidance for the first quarter.
Although Amon didn’t mention the job cuts, he said the chip designer was ready to cut operating expenses further if necessary.
Snap (SNAP) cut about 20% of its workforce in August as it continues to battle slowing ad sales. The company posted revenue growth of just 6% in the third quarter, the slowest on record. Still, daily active users grew by 19%, to 363 million.
Advertisers are cutting back on ad sales as interest rates, inflation and currency fluctuations affect corporate budgets. And that, in turn, hits Snap’s bottom line. It’s not just about ad sales. Apple’s iOS privacy changes are also impacting the company and other social media sites, making it harder for advertisers to specifically target potential customers.
In a November 3 email to employees, Stripe CEO Patrick Collison announced that the company was laying off 14% of its total workforce. In the post, Collison explained that the payment processing company hired too many employees and blamed the broader macroeconomic environment for the decision.
The company said it would provide affected workers with two weeks of severance pay, 2022 bonuses, paid vacation and the cash equivalent of six months of health care bonuses.
Just a week after taking the reins of Twitter in October, Elon Musk cut the company’s workforce in half, laying off around 3,800 employees. After the announcement, Musk said he had to make the move because Twitter is losing $4 million a day.
After the layoffs, Twitter reportedly asked a number of employees to return to the company because they were too important for certain operations.
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Allie Garfinkle is a senior technical reporter at Yahoo Finance. Follow her on Twitter at @agarfinks.
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