More Layoffs Coming From Tech Giants
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Big Tech is struggling.
Multiple big tech companies are announcing more layoffs.
This comes as big tech companies made other layoffs just months ago.
Big tech companies Meta, Atlassian, Sirius XM, and Microsoft are laying off substantial segments of their workforce in March.
With the tech industry’s slump following excessive hiring practices during the pandemic, companies are striving to make corrections through layoffs, according to CNN. The companies have cited multiple factors for the change, but mainly attribute the cuts to boosting efficiency, rebalancing, and finances.
After laying off 11,000 employees in November 2022 in its first-ever major layoff, Meta–the parent company of Facebook and Instagram–is reportedly planning to lay off thousands more. This upcoming stage of layoffs may be finalized in the next week due to the desire to complete it before Mark Zuckerberg, their chief executive officer, goes on parental leave for his third child, according to Bloomberg.
Zuckerberg has dubbed 2023 as “the year of efficiency” for Meta, so this second round of layoffs did not come as a shock to its workers, according to Bloomberg. However, many are experiencing anxiety and low morale including concern regarding receiving bonuses scheduled to be distributed this month if they are let go.
More than 50,000 employees will be cut.
CNN reported (January 22, 2023):
Over the past three months, Amazon, Google, Microsoft and Facebook-parent Meta have announced plans to cut more than 50,000 employees from their collective ranks, a stunning reversal from the early days of the pandemic when the tech giants were growing rapidly to meet surging demand from countless households living, shopping and working online. At the time, many tech leaders seemed to expect that growth to continue unabated.
By September of 2022, Amazon (AMZN) had more than doubled its corporate staff compared to the same month in 2019, hiring more than half a million additional workers and vastly expanding its warehouse footprint. Meta nearly doubled its headcount between March 2020 and September of last year. Microsoft (MSFT) and Google (GOOGL GOOGLE) also hired thousands of additional workers, as did other tech firms like Salesforce (CRM), Snap (SNAP) and Twitter, all of which have announced layoffs in recent weeks, too.
But many of those same leaders appear to have misjudged just how much growth spurred by the pandemic would continue once people returned to their offline lives.
In recent months, higher interest rates, inflation and recession fears causing a pullback in advertising and consumer spending have all weighed on tech companies’ profits and share prices. Wall Street analysts now project single-digit revenue growth during the all-important December quarter for Google, Microsoft and Amazon, and declines for Meta and Apple, when they report earnings in the coming weeks, according to Refinitiv estimates.
What is going on with Big Tech?
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