Over the past three months, several companies have announced job cuts in an effort to control costs amid growing fears of a recessionary storm that could soon hit due to the invasion of Ukraine and high inflation. By July 2022, more than 32,000 Silicon Valley employees had been laid off, according to a detailed report published by Crunchbase. Big tech companies like Netflix, Shopify, Coinbase and others have laid off hundreds of workers.
We hear about mass layoffs almost every week, suggesting that no job is currently so stable, and 2022 is turning out to be another worse year for many people as they lose their jobs for no apparent reason. While some tech companies have already started to freeze the hiring process, many of them are immediately using part of their workforce to deal with economic uncertainty. Around 64 notable tech companies in the US announced job cuts in July and the total number of layoffs is over 32,000 rupees.
Shopify, which is a popular e-commerce platform, laid off more than 1,000 employees last month, according to data compiled by Crunchbase. The job cuts were made in the recruiting, support and sales departments. The company’s CEO, Tobi Lutke, claimed that the platform only reduces “overspecialized” and duplicate roles. This appears to be a cost-saving measure as he says the company has been hiring more employees lately to accommodate expected growth with the idea that the e-commerce industry will continue to grow beyond the pandemic. of coronavirus.
Twitter also laid off 30% of its talent acquisition team, according to a Wall Street Journal report. The quoted source says the microblogging site was facing “increasing business pressures” and is restructuring its talent acquisition team due to revised business needs. Microsoft also cut its 1,80,000 employees by 1% as it plans to make structural adjustments and meet business needs.
A recent report by Wired claimed that TikTok had started laying off employees in the name of a company-wide restructuring and that it planned to lay off fewer than 100 employees. Other start-ups like Whoop, a fitness apparel company, have laid off 15% of their staff. Vimeo, a video-sharing platform, has reportedly cut 72 employees. The list of tech companies that have laid off many of their employees is very long and even includes Outbrain, Niantic, Gemini, etc.
In just two months, Netflix laid off a total of 450 employees and numerous contractors after the company saw declining subscriber growth and revenue. The company explained that the layoffs were made to control expenses and ensure costs matched their “slower revenue growth”.
The cryptocurrency industry has also been affected, and popular platforms like Coinbase have laid off over 1,100 employees, or 18% of its workforce. Company CEO Brian Armstrong first blamed “economic conditions” for the layoff, then also said Coinbase was “over-hiring” because the crypto was getting good traction on a weekly basis.
Meanwhile, other popular tech companies such as Spotify, Apple, Meta and Google have announced plans to freeze or slow down the hiring process, while a few have just cut the target set for this year and said they would continue to hire. .
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