Microsoft, Amazon, Meta, and others have laid off more than 60,000 employees

Microsoft CEO Satya Nadella speaks at the company’s Ignite Spotlight event in Seoul on November 15, 2022.

Seung Joon Cho | bloomberg | Getty Images

Job cuts are piling up in the land of technology, as companies that led the bull market for 10 years adjust to a new reality.

Microsoft said Wednesday that it is laying off 10,000 employees, which will reduce the company’s headcount by less than 5%. Amazon It also began a new round of job cuts that is expected to eliminate more than 18,000 employees and become the largest workforce cut in the e-retailer’s 28-year history.

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The layoffs come at a time of slowing growth, rising interest rates to fight inflation, and fears of a potential recession next year.

Jason Greer says layoffs in tech and banking will have a ripple effect in other industries

Here are some of the major cuts in the tech industry so far. All numbers are approximate based on filings, public statements, and media reports:

Microsoft: cutting 10,000 jobs

Microsoft is cutting 10,000 workers through March 31 as the software maker prepares for slower revenue growth. The company also charges $1.2 billion in fees.

“I am confident Microsoft will come out of this stronger and more competitive,” CEO Satya Nadella declared in a note to employees posted to the company’s website on Wednesday. He wrote that some employees will find out this week if they will lose their jobs.

Amazon: write off 18,000 jobs

earlier this month, Amazon CEO Andy Jassy said the company plans to lay off more than 18,000 employees, primarily in its human resources and store divisions. It came after Amazon said in November that it was looking to cut staff, including at its hardware and staffing organizations. CNBC reported at the time that the company was looking to lay off about 10,000 employees.

Amazon has gone on a hiring spree during the Covid-19 pandemic. The company’s global workforce swells to more than 1.6 million by the end of 2021, up from 798,000 in the fourth quarter of 2019.

Alphabet (Truth): Cut 230 posts

Google’s parent company the alphabet It largely avoided layoffs until January, when it cut 15% of the staff from Verily, its health sciences division. Google itself hasn’t made any major layoffs as of January 18th, but employees are growing increasingly concerned that the ax may soon fall.

Crypto.com: 500 job cuts

Crypto.com announced plans to lay off 20% of its workforce on January 13th. The company had 2,450 employees, according to PitchBook data, which indicates about 490 layoffs.

CEO Chris Marsalek said in a blog post that the cryptocurrency exchange had grown “ambitiously” but was unable to weather the collapse of Sam Bankman Fried’s FTX crypto empire without further downgrades.

“All affected individuals have already been notified,” Marsalik said in a post.

Coinbase: 2,000 jobs cut

on January 10 Coinbase It announced plans to cut about a fifth of its workforce as it looks to conserve cash during the cryptocurrency market downturn.

The exchange plans to cut 950 Jobs, according to a blog. Coinbase, which had roughly 4,700 employees as of the end of September, had already cut 18% of its workforce in June saying it needed to manage costs after growing “too quickly” during the bull market.

“With complete hindsight, in retrospect, we should have done more,” CEO Brian Armstrong told CNBC in a phone interview at the time. “The best you can do is respond quickly as soon as the information becomes available, which is what we do in this situation.”

Sales force: 7,000 jobs cut

Salesforce is cutting 10% of its staff and cutting some office space as part of a restructuring plan, the company announced Jan. 4. It employed more than 79,000 workers as of December.

In a letter to employees, co-CEO Marc Benioff said customers were “calculated” in their purchasing decisions given the challenging macroeconomic environment, which led Salesforce to make a “very difficult decision” to lay off workers.

Salesforce said it will record charges of between $1 billion and $1.4 billion related to employee cuts, and $450 million to $650 million related to office space cuts.

Meta: 11,000 jobs cut

Facebook parent meta She announced the most significant round of layoffs ever in November. The company said it plans to cut 13% of its more than 11,000 employees.

metaDisappointing guidance for the fourth quarter of 2022 wiped out a quarter of the company’s market capitalization and pushed the stock to its lowest level since 2016.

The tech giant’s cuts come after it expanded staff by nearly 60% during the pandemic. The business has been hurt by competition from rivals like TikTok, a broad slowdown in online ad spending and challenges from Apple’s changes to iOS.

Twitter: 3,700 job cuts

Lyft: cut 700 jobs

lift It announced in November that it was cutting 13% of its staff, about 700 jobs. In a letter to employees, CEO Logan Green and President John Zimmer pointed to a “potential recession sometime next year” and rising costs for securing rides.

For laid-off workers, the taxi rental company has promised 10 weeks of pay, health care coverage through the end of April, an acceleration of stock vesting to the November 20 maturity date and offering help with placement. They added that workers who have worked for the company for more than four years will receive an additional four weeks of pay.

Ribbon: 1,100 job cuts

Online payments giant Stripe announced plans to lay off nearly 14% of its staff, about 1,100 employees, in November.

Chief Executive Patrick Collison wrote in a note to employees that the cuts were necessary amid rising inflation, fears of a looming recession, rising interest rates, energy shocks, tighter investment budgets and tight startup funding. He said that these factors combined indicate that “the year 2022 marks the beginning of a different economic climate.”

Stripe was valued at $95 billion last year, and it reportedly lowered its internal valuation to $74 billion in July.

Shopify: 1,000 job cuts

In July, Shopify announced that it had laid off 1,000 employees, which amounts to 10% of its global workforce.

In a note to employees, CEO Toby Lutke admitted he had miscalculated how long the pandemic-led e-commerce boom would last, and said the company was being affected by a broader downturn in online spending. Its share price is down 78% in 2022.

Netflix: cutting 450 jobs

Netflix announced two rounds of layoffs. In May, the streaming service cut 150 jobs after the company reported its first subscriber loss in a decade. In late June, it announced 300 more layoffs.

In a statement to employees, Netflix said, “As we continue to invest significantly in the business, we’ve made these adjustments so that our costs grow in line with our slower revenue growth.”

Snapchat: Cut 1,000 jobs

In late August, Snap announced that it was laying off 20% of its workforce, which equates to more than 1,000 employees.

pop CEO Evan Spiegel told employees in a memo that the company needs to restructure its business to deal with its financial challenges. He said the company’s 8% quarterly revenue growth rate is “much lower than we expected earlier this year.”

Robinhood: 1,100 job cuts

Retail brokerage Robinhood cut 23% of its staff in August, after cutting 9% of its workforce in April. Based on filings and public reports, this amounts to more than 1,100 employees.

Robinhood CEO Vlad Tenev blamed the “deteriorating macro environment, with inflation soaring to a 40-year high accompanied by a broad crash in the cryptocurrency market.”

Tesla: cutting 6,000 jobs

in June, Tesla CEO Elon Musk wrote in an email to all employees that the company is cutting 10% of its paid workers. The Wall Street Journal estimated that the cuts would affect about 6,000 employees, based on public filings.

“Tesla will cut the number of salaried employees by 10% as it becomes overstaffed in many areas,” Musk wrote. “Note that this does not apply to anyone who actually builds cars, batteries, or installs solar. The number of hourly employees will increase.”

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