The world is yet to recover fully from the effects of the Corona Virus pandemic. The wave of Covid-19 has not only disrupted the immunity of the population but also affected the global economy. Many Sectors Were affected by this pandemic like education. People were relying on taking online assignment help for saving their time to manage other work. Thousands of small and medium-sized businesses suffered losses in millions. Many of them were forced to announce bankruptcy. The tech organizations were also not spared, and their productivity suffered greatly with limited work resources and work-from-home models. With companies witnessing lesser profits, the global tech industry is at the edge of another recession. Poor performances and disrupted supply chains are leading to the slashing of budgets, which is evident from the large wave of layoffs from big tech companies. In this blog, we listed the ten largest tech layoffs in the biggest tech companies this year –
Facebook was renamed Meta very recently by their CEO, Mark Zuckerberg. Zuckerberg’s dream to become king of social media and tech industries for a long time led to buying Instagram and WhatsApp. However, his bold decision could not have come at a more wrong time. The pursuit of creating the “Metaverse” was fruitful but came with a huge price.
The whole project cost them much more than their estimation, which led to a net loss of 9.4 billion dollars in that financial year. The reality labs division failure was so immense that it also pulled Zuckerberg’s worth down by a few notches in the world’s richest list. With the threat of recession looming over them, Meta eventually was forced to fire their employees. In 2022, Meta has already laid off approximately 11,000 workers globally. This number is estimated to grow in the future days.
Twitter was acquired by the American billionaire and tech innovator Elon Musk a few months back. Since then, Twitter has been continuously in the headlines for all the wrong reasons. Musk has been receiving flak from netizens for his controversial and outrageous statements and decisions. During the takeover, Elon Musk touted this acquisition as his dream to shape the tech company as the biggest social media platform.
However, the rebuilding wasn’t as smooth as he had imagined. Elon being the eccentric person he is, started managing the company on the wrong note. He started by firing Twitter CEO Parag Agrawal and several other senior management employees. Although he tweeted, “The Bird is Freed” after his drastic decision, the decision proved disastrous as Twitter lost more than 4 billion USD in a single day. This led to more layoffs, and within a week, Twitter fired almost four thousand employees.
Snap, one of the biggest video streaming apps in the world, is also headlining because of its recent trend of firing employees. The prominence of Netflix and Amazon Prime and the lack of quality shows showed a steep decline in Snap’s viewership. As their profits kept tumbling down, the sister concern of Snapchat decided to lay off almost 20% of their total workforce. That means almost 6000 people lost their job overnight.
Although Snap has seen a rise in the stakes after the layoff, it is still not enough to sustain its operations. It is evident from the fact that Snap has cancelled multiple projects like Pixy, The Update, and many more.
The leading ERP-software company Salesforce is also going through one of its biggest slumps to date. Salesforce incurred a major loss in 2022 after its impeccable business figures in 2021. Their annual net income showed more than three billion dollars from the previous figures of 4.07 USD.
Salesforce laid off more than 2000 employees in the last six months to counter this huge loss. They fired most of the employees on the ground of performance issues and other factors. Many employees were moved to the PIP program, with a 30-day review option. The numbers can rise significantly if these fresh employees fail to turn the boat around.
Lyft was the major rival of Uber only one year ago. It was rivalling Uber for the numero uno position in the commercial cab section. However, just within a year, the scenario changed drastically. Since July 2022, Lyft has already slashed its workforce twice. Till date, Lyft has fired almost 13% (almost 600) of its total workforce.
Lyft management is trying all sorts of strategies to reduce their operating costs. However, market experts are yet to predict a better future for them in the near future. They have already suffered a loss of almost 30 million USD before the layoffs. They are estimated to face more losses in the coming quarter, which can never be good news for the Lyft workforce.
The leading payment processing platform is another tech giant that is currently being accused of firing people. Stripe has recently announced the layoff of 14% of its workforce. That means around 1100 people have already lost their jobs. However, the financial struggles of Stripe are signifying another concerning fact. The Fintech domain, which was booming last year, is suddenly facing a slump.
According to the latest press release by Stripe’s CEO, they hired too many employees to manage the massive surge in the demand for POS and online payments post-pandemic. This leaves them with higher operating costs which is leading to layoffs.
Microsoft is also conducting layoffs at grand scales across divisions. The organisation is continuously declining to provide any data on how many employees they have laid off. But we can easily estimate that the number is quite high from the barrage of tweets and social media interactions about Microsoft’s decision.
Amazon, the E-commerce giant, has also joined the bandwagon of firing its workforce. Recently, Jeff Bezos declared that the company is facing a revenue crunch because of massive losses in stock value. Many of their divisions are deemed unprofitable, and hence, they are announcing the layoff of almost a thousand people.
Shopify is another tech giant that has announced 10% of its workforce layoff in the last six months. The CEO announced that the company value had taken a hit of 15%, and so they were forced to lay off approximately one thousand employees.
Coinbase Global was on its way to becoming the leading virtual asset exchange company in 2021. However, 2022 proved to be a massive obstacle for them. The general reluctance of crypto coins post Elon Musk’s comments and job cuts have severely impacted their profit margins. They have already laid off 58 employees, and many people can also face the axe unless the fortunes turn.
Recessions can potentially destroy an economy, and the major layoffs are indicating that we are moving towards one. By the laws of economics, inflation and recessions will come and go. But instead of submitting to natural events, you can read this blog and make smart decisions to sustain your job during the upcoming doomsday.