Mass Layoffs – Global IT behemoths are on a hiring binge. However, IT companies are either freezing hiring or shrinking in response to slow consumer spending, rising interest rates, and global inflation that is outpacing local inflation.
Meta layoff 11,000 Employees
On November 9, Meta CEO Mark Zuckerberg stated that the firm would cut off around 11,000 workers, or 13% of its global workforce.
According to media estimates, over 100 of India’s estimated 1,000 employees—mostly software engineers and other computer professionals—have been impacted.
The market capitalization of Meta was wiped out in the fourth quarter due to its underwhelming guidance, and the stock fell to its lowest level since 2016.
Since the beginning of this year, the company’s Reality Labs division has lost $9.4 billion due to CEO Mark Zuckerberg’s dedication to the metaverse.
After increasing its headcount by roughly 60% during the pandemic, Meta is rightsizing. However, competition from rivals like TikTok, a general slowdown in online ad spending, and difficulties with Apple’s iOS updates have all harmed the company’s performance.
In a message to staff members, Zuckerberg stated that individuals who lose their employment would be paid for 16 weeks and two more weeks for each year of service. In addition, for six months, Meta will pay for health insurance.
Twitter – Cut-off 3,700 Employees
Twitter, a social media platform, was also one of the businesses that cut employees across their international locations, not just Meta. A week after Elon Musk took control, Twitter announced on November 4 that it would eliminate half of its global workforce, or around 3,700 workers.
After the country’s layoffs started, Twitter reportedly fired India’s entire marketing and communications team. As a result, 180 out of the 230 employees in the marketing, communication, and other divisions in India are alleged to have been dismissed by the microblogging platform.
According to a November 14 Platformer article, Twitter is also alleged to have fired nearly 4,400 of its contract employees. It further stated that 4,400 of Twitter’s 5,500 contract employees learned they had been let go after losing access to Slack and several other work networks.
Lyft: Cut-off 700 Employees
Lyft announced last week that it would cut 13% of its workforce or about 700 jobs. In a letter to employees, Chief Executive Logan Green and President John Zimmer warned that a “recession is likely sometime next year” and that rideshare insurance costs are rising.
The Fleet management company promised the dismissed workers 10 weeks’ salary, health insurance until the end of April, a speedy share transfer on November 20, and recruitment assistance. They added that workers who stay there for more than four years would be paid an extra four weeks.
Stripe: layoff 1,100 Employees
Digital Online payments giant Stripe let go over 1,100 people last week, or about 14% of its workforce.
In a note to the workers, CEO Patrick Collison explained why the changes were required, citing factors such as rising prices, worries about an impending recession, increased interest rates, energy shocks, constrained investment budgets, and a lack of startup capital.
When considered collectively, he claimed that these elements “indicate that 2022 heralds the beginning of a different economic climate.”
All departing employees will receive a 14-week severance package from Stripe, with additional payments to those with more extended employment. It will also pay the equivalent of six months’ worth of past or future healthcare premiums.
Coinbase: Cut-off of more than 1,100 Employees
Coinbase said in June that it had reduced the number of full-time employees by 18%, or roughly 1,100 individuals.
Brian Armstrong, the CEO of Coinbase, warned of a potential recession, the need to control costs, and “too rapid” growth during a bull market.
Coinbase, which had its stock market debut, has seen its value plummet by more than 80% this year, along with cryptocurrencies.
Shopify – Layoffs its 1,000 Employees
CEO Tobi Lutke admitted in a report to staff that he had underestimated the pandemic’s impact on e-commerce’s longevity and that the company is now suffering from a general decline in online spending. In 2022, the company’s stock price decreased by 78%.
Netflix: Cut-off 450 Employees
There have been two rounds of layoffs at Netflix. After Netflix revealed its first subscriber decline in ten years, the streaming firm cut 150 workers in May. Then, late in June, Netflix made another 300 layoffs public. This year, Netflix’s stock price is down 58%.
Amazon: plans to cut off its 10,000 Employees
With the potential to eliminate 10,000 positions this week, Amazon wants to add to the rising tsunami of layoffs affecting the faltering primary tech sector.
The Final Thoughts
According to experts, the reason for these massive layoffs is that several tech companies expanded quickly during the COVID pandemic. This has put more pressure on all tech companies, along with inflation and rising interest rates.