Layoffs are going on in the world’s top tech companies
Technology sector firms are considered as safe and high paying companies all over the world. Recently such tech companies have seen numerous layoffs. The global economic downturn is hitting the tech sector hard like any other industry.
As a result, these reputed technology companies are looking for alternative ways to solve the problem. Companies like the social site, SoundCloud, popular streaming platforms including Stripe have recently been linked to layoffs.
It has been reported that up to 20 percent of workers have been reduced in these institutions. Crunchbase estimates that around 44,000 workers in the tech industry will lose their jobs by the end of 2022. Another study says the US economy is currently at its highest unemployment rate in a decade.
A slowdown in new hires and layoffs have hit the tech industry hard. Companies like Webthree to streaming platforms have recently been added to this list. Tesla, Twitter, TikTok, Netflix, Coinbase, and Robinhood have all come under fire in recent months amid rising inflation.
The labor market in the world’s largest economy has recently shown signs of weakening. In the past year, major companies such as Google, Walmart, Apple, Meta and Microsoft have announced hiring freezes and layoffs.
Many firms have again announced layoffs, citing the volatility of the crypto market. According to analysts, such shocks (recessions) in the economy are going to the world’s biggest tech giants.
According to Yahoo Finance, financial consulting firm PwC conducted a survey of executives and board members of nearly 700 American companies. More than half of respondents said they are preparing for workforce layoffs.
Some institutions have already started that activity. Not only this, about 52 percent of the organizations have suspended recruitment activities. Even 46 percent of companies are reducing bonuses and special incentives for their employees.
According to one survey, respondents have taken proactive steps to increase employee productivity and create the right mix of employee skills. The reason, they say, is that after years of hiring frenzy and a tight labor market, executives can now see the difference between skilled workers and other workers.
However, some exceptional activities have also been observed in the labor market. On the one hand, businessmen are reducing the number of employees, on the other hand, many companies are increasing wages.
Two-thirds of the companies surveyed said they have instituted health benefits in addition to salary increases for employees. In addition, 70 percent of organizations are allowing employees to work from home permanently.
Dismissed on Twitter by sending an e-mail
Times are pressing for Twitter. The social media has officially started the process of layoffs. Recently, all the employees have been informed through e-mail about the temporary closure of every office of the company.
The company said that the final list of layoffs will be communicated to the employees through e-mail. The company also said that those who have not been laid off will receive the message on the email they use at work. And everything has been happening since Elon Musk bought Twitter. Elon Musk reportedly wants to save $1 billion from Twitter’s annual infrastructure costs.
Three rounds of layoffs at top tech companies Microsoft
Tech firm Microsoft has also laid off workers. According to media sources, about 1,000 workers have been retrenched from various departments of the company recently. It is known that since last July, Microsoft laid off their workers for the third time.
As part of the restructuring, Microsoft laid off 1 percent of its 180,000 employees last July. At that time, 1 thousand 800 employees of the company were fired. Microsoft cut another 200 jobs from its customer-focused research and development projects in August, following the first round of layoffs last July, the BBC reported.
14 percent of workers are Kamal Stripe
Online payments giant Stripe is laying off about 14 percent of its workforce. The company’s CEO Patrick Collison recently said the decision was made due to rising inflation, fears of a recession, high interest rates, tight investment budgets and sparser startup funding.
Taken together, these factors indicate that the global economy will have a different economic climate at the end of 2022, the BBC reported. He admits that both the company’s Internet economy and spending will grow very rapidly in 2022-23. Stripe said it will cut 7,000 jobs. It has already affected about 1100 people.
The reason for the layoffs is the economic downturn
Dozens of crypto companies have faced crisis in recent months due to the cryptocurrency collapse. One of them is Coinbase. Although Coinbase did not go bankrupt like other crypto firms, the impact on their employees was huge.
Last June, Coinbase announced layoffs of 18 percent of its total workforce. As a result, about 1100 employees of the organization lost their jobs. The company cited the economic downturn as the reason. The company’s CEO, Brian Armstrong, said the uncertain market conditions are now more at risk than managing employee costs. Therefore, a decision has been taken to maintain its infrastructure.
Tesla prepares for 10 percent layoffs top tech companies
Tesla, the world’s largest electric car maker, wants to cut 10 percent of its workforce, CEO Elon Musk said. The e-mail sent to staff last June was titled ‘All Recruitment Suspended Worldwide’. In which he mentioned his ‘very bad feeling’ about the global economy.
Earlier, Tesla’s CEO asked all employees who were working from home to leave their jobs instead of returning to the workplace. According to media sources, Tesla and its subsidiaries had about 100,000 employees at the end of 2021. Due to the decrease, Tesla’s share price in the United States also decreased by about 3 percent.
Losing customers and layoffs at Netflix top tech companies
Netflix is one of the world’s most popular video streaming platforms and production companies. Recently, Netflix announced 300 layoffs. Earlier, the company laid off 150 workers. For the first time in a decade, the company has seen a decline in customers. Netflix said, “While we continue to invest in the business, we are facing layoffs due to declining revenue.”
However, the recruitment of staff in other regions is also continuing. It is known that Netflix will suffer a big blow if it loses 2 lakh customers in the first three months of this year. Not only that, the streaming service was informed that it will lose another two million subscribers by June.