Large companies in various sectors are laying off workers at an astonishing rate, calling the state of the economy into question.
Among the latest announcements is Microsoft, which said Wednesday that the company plans to cut 10,000 workers after Microsoft shares fell more than 20% in the past 12 months.
An even bigger round of layoffs took effect this week at Amazon after CEO Andy Jassy announced this month that nearly 18,000 workers would be let go, mainly from its retail division and PXT (People Experience and Technology), which handles human resources and more. issues.
“Amazon has navigated difficult and uncertain economics in the past, and we will continue to do so,” Jassy said in a Jan. 4 blog post. “These changes will help us pursue our long-term opportunities with a stronger cost structure.”
MICROSOFT CUT 10,000 WORKERS AS A MOUNTAIN TECH LAYOFFS
The widespread downsizing trend goes back several months as Facebook parent Meta said in November that it would cut more than 11,000 employees and freeze hiring in the first quarter of 2023.
“I want to take responsibility for these decisions and how we got here,” CEO Mark Zuckerberg said. “I know this is hard for everyone, and I am especially sorry for those affected.”
Elsewhere in the tech sector, Alphabet, Google’s parent company, is cutting 15% of the staff in its Verily health sciences division, which amounts to more than 200 jobs. Chief Executive Stephen Gillette said in an email to employees last week that the staff cut would result in the discontinuation of work on medical software Verily Value Suite and other products in the early stages of development, the Wall Street Journal reported.
Fears about ‘white collar recession’ grow as Goldman Sachs, Morgan Stanley, Amazon and other jobs cut
Additionally, Salesforce announced earlier this month that the company will 10% layoff of its workforce as part of a plan to reduce operating costs and improve operating margins. This percentage amounts to more than 7,000 workers.
In the world of cryptocurrency, Coinbase announced last week that it intends to shed 20% of its workforce, affecting approximately 950 employees. The company announced this week that it will cease all operations in Japan.
All this on top of Twitter cutting nearly half of its workforce after Elon Musk took over as CEO. Insider reported Wednesday that the social media company may lay off 50 more employees in the near future.
The big banks were not immune. Goldman Sachs announced 3,200 hires — the most since the 2008 financial crisis. Last month, Morgan Stanley said it would cut 2% of its workforce, and Bank of America said it was imposing a partial hiring freeze.
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In the media sector, the Washington Post publisher told employees last month there would be a single-digit percentage of cutbacks, which The New York Times reported was expected to happen in early 2023. CNN and BuzzFeed also announced layoffs in December, and last week they were announced. Reporting that NBC News and MSNBC will be making cuts, too.
Despite the layoffs, the White House on Thursday tweeted a message saying there was cause for “optimism” when it came to the economy. The post included a picture of his “economic to-do list,” which included “create good jobs” and “maintain a strong labor market.”
FOX Business’ Julia Musto and Daniela Genovese contributed to this report.