Just this week, Alphabet, Google’s parent company, Microsoft
(MSFT) Vox Media announced layoffs Affecting more than 22,000 workers.
Their moves follow the job cuts earlier this month At Amazon, Goldman Sachs, and Salesforce. It is expected that more companies will do the same as those that have hired aggressively over the past couple of years, moving in many cases in the opposite direction.
The cuts are in sharp contrast with 2022, which recorded the second-highest level of career wins Registered 4.5 million. But last year’s job numbers started to fall as the year went on, with the December jobs report showing the lowest monthly gain in two years.
The highest level of employment occurred in 2021, when 6.7 million jobs were added. But that came on the heels of the pandemic’s first year, when the US effectively shut down and lost 9.3 million jobs.
The current layoffs are in many industries, from media companies to Wall Street, but so far it has hit big tech companies hard.
This is in contrast to the job losses during the pandemic, which saw consumers’ buying habits shift towards e-commerce and other online services during the lockdown. Technology companies have gone on a hiring spree.
But now, workers are back at their desks and personal shopping is making a comeback. Add in the increased likelihood of a recession, higher interest rates, and tepid demand due to higher prices, and tech companies are cutting their costs.
January was filled with headlines announcing job cuts at company after company. Here is this month’s list of layoffs – so far.
(The Google)On Friday, the parent company said it would lay off 12,000 workers across production regions and regions, or 6% of its workforce. Alphabet has added 50,000 workers over the past two years as the pandemic fueled demand for its services. But recent recession fears have prompted advertisers to pull back from its core digital advertising business.
“Over the past two years, we have seen periods of explosive growth,” CEO Sundar Pichai said in an email to employees. “To keep pace with and support this growth, we have set an economic reality different from the one we face today.”
The company said in a securities filing on Wednesday that the tech giant is laying off 10,000 employees. Globally, Microsoft has 221,000 full-time employees of which 122,000 are based in the United States.
CEO Satya Nadella said during a talk in Davos that “no one can defy gravity” and that Microsoft cannot ignore the weaker global economy.
“We live in times of great change, and as I meet with clients and partners, a few things are clear,” Nadella wrote in a note. “First, as we’ve seen customers accelerate their digital spending during the pandemic, we’re now seeing them optimize their digital spending to do more with less.”
The publisher of Vox news and opinion website The Verge and New York Magazine announced Friday that it is laying off 7% of its staff, or about 130 people.
“We are facing, and anticipating, more of the same economic and financial pressures that others in the media and technology industries have faced,” CEO Jim Pankoff said in a note.
Layoffs are also hitting Wall Street hard. The world’s largest asset manager is cutting 500 jobs, or less than 3% of its workforce.
Today “Unprecedented market environmentIt is a stark contrast to its position over the past three years, when it increased its staff numbers by about 22%. The last big round of cuts was in 2019.
The bank will lay off up to 3,200 workers this month Decreased global transaction activity. More than a third of the cuts are expected to come from the company’s trading and banking units. Goldman Sachs
(Fadex) It had nearly 50,000 employees at the end of the third quarter of last year.
The crypto brokerage announced in early January that it had laid off 950 people — roughly one in five employees in its workforce. The move comes just months after Coinbase laid off 1,100 people.
Although Bitcoin had a strong start to the new year, cryptocurrency companies experienced significant price drops for Bitcoin and other cryptocurrencies.
(MCD)Chief Executive Chris Kempzynski said this month that the company, which has thrived during the pandemic, plans to lay off some corporate employees.
“We will be assessing roles and staffing levels in parts of the organization and there will be tough discussions and decisions going forward,” Kempszynski said, outlining a plan to “break down internal barriers, increase innovation and reduce work that does not align with company priorities.”
The online custom clothing retailer said it plans to lay off 20% of its salaried employees.
“We are going to lose many talented team members from across the company and I’m really sorry,” Stitch Fix
(SFIX) Founder and former CEO Katrina Lake wrote in a blog.
“Companies that last a long time go through different phases. They’re not in the position of expanding heavyweights every year,” CEO Andy Jassy said in a note to employees.
Amazon has thrived during the pandemic, hiring quickly over the past few years. But demand has slowed as consumers return to their offline lives and battle higher prices. Amazon says it has more than 800,000 employees.
At the New York Times’ DealBook Summit in November, Jassy said he believes Amazon “made the right decision” in terms of building its express infrastructure, but said the hiring spree is “a lesson for everyone.”
Even as he spoke, Amazon warehouse workers who helped organize the company America’s first labor union At the Staten Island facility last year, a picket was made for Gacy’s appearance outside the convention venue.
“We definitely want to take this opportunity to let him know that workers are waiting and we’re ready to negotiate our first contract,” said Chris Smalls, president of the Amazon Workers Union, calling the protest a “welcome party” for Gacy.
(CRM) It will cut about 10% of its workforce of more than 70,000 employees and reduce its real estate footprint. In a letter to employees, Salesforce
(CRM)President and co-CEO Marc Benioff admitted adding a lot to the company’s headcount early on in the epidemic.
– Claire Duffy, Matt Egan, Oliver Darcy, Julia Horowitz, Katherine Thorbecke, Paul R. La Monica, Nathaniel Myerson, Pareja Cavillans, Daniel Weiner Brunner and Hannah Ziadi contributed to this report.