Thousands of staff have been let go by Twitter, Apple, Meta, and other major internet companies in recent months.
Every company in the world is battling an economic slump. Consumer spending is sluggish, central banks are raising interest rates, and foreign currencies are strong, Risk of Global Recession in 2023 all of which point to a potential recession. As a result, tech companies like Apple, Meta, and Amazon are reducing staff or halting hiring to keeping the ship afloat. Facebook parent firm Meta dismisses 11,000 workers, and Mark Zuckerberg argues the business must be more capital-efficient.
The Indian IT industry and Silicon Valley experienced a wave of layoffs in the third quarter. According to a recent count by Crunchbase, which offers insights into the current state of business, US-based IT companies had let go of more than 45,000 employees as of October 2022. These layoffs include Twitter’s most recent round of mass layoffs, which affected about half the company.
In India, conditions are comparable. According to the website inc42.com, 15,708 people nationwide have lost their employment. According to the data, 44 firms have laid off employees, including unicorns like BYJU’S, Chargebee, Cars24, LEAD, Ola, Meesho, and MPL.
Let’s examine the most extensive layoffs by tech oligopolies so far this year in more detail.
According to Meta Reports, Facebook’s parent company Meta intends to reduce staff numbers to rein in costs. Some employees were forewarned by Mark Zukerberg in August that “a bunch of individuals at the company shouldn’t be here.” And now The Washington Post reports that Meta intends to dismiss these workers. The first two quarters of this year saw a fall in the company’s revenue, and the third quarter’s net sales were USD 4.4 billion, or 52% less than the previous year. In all divisions, hiring has already been put on hold, and Mark Zuckerberg has told staff to make do with what they have. However, it appears that more than halting hiring would be needed to stop Meta’s losses, and the company has decided to implement mass layoffs.
Mark Zuckerberg, the CEO of Meta (previously Facebook), has stated that the company will implement mass layoffs. The CEO of the business took responsibility for the issue of an overstaffed workforce in a correspondence issued to hundreds of executives. According to Zuckerberg, the problem was brought on by his “over-optimism” regarding the company’s expansion. According to reports, Musk will begin the layoffs on Wednesday.
Numerous thousand employees will lose their jobs due to the massive layoffs at Meta. The Wall Street Journal said that Zuckerberg accepted responsibility for the company’s errors. According to the source, this will be the biggest round of layoffs at Meta and probably the biggest in the tech industry this year. Since Meta’s founding in 2018, this personnel reduction will be the largest.
According to the report, the business and recruiting departments will likely experience the greatest layoffs. At 6 am ET (4:30 pm IST), the company is anticipated to issue an internal notice to launch the procedure formally. As the day goes on, specific employees will be told of their termination status later in the morning.
Due to its bleak financial future, Meta will join the list of tech companies that have resorted to mass layoffs. Recently, Twitter laid off about half of the staff working in its international locations. The India office of the corporation let go of about 90% of all its workers. In contrast to Zuckerberg, Musk had only recently taken over his business before implementing the massive layoffs. He asserted that the company was losing over $4 million per day and that he had “no choice.” There are several causes for the slowdown in the world economy. But while business is sluggish, employment policies are often relaxed, if not outright frozen. Most of the computer industry’s giants have paused their hiring plans recently, and some are being forced to lay off employees. Additionally, as most tech companies are headquartered in the United States, most of those impacted by the economic situation are locals.
We are all aware that Twitter is undergoing its renovation after Elon Musk officially closed the agreement to purchase the social media platform last month. According to reports, the platform let go of 50% of its employees worldwide. However, Twitter is one of many well-known digital companies to lay off staff. The other nine major businesses have let go of thousands of workers.
INTEL
As PC demand has slowed during the past few months, so have Intel’s commercial requirements. According to a recent Bloomberg story, Intel has reduced the number of employees in its sales and marketing division by 20% as part of its billion-dollar job-cutting plan. One of the numerous US-based corporations seeking to reduce costs is Intel, and this process includes eliminating jobs.
MICROSOFT
Microsoft is another major company that opted to reduce its workforce due to decreasing PC sales. Microsoft had to significantly reduce its workforce last month after letting go of 1% of its workers in July. The recent termination was connected to Microsoft’s software division’s slowness.
NETFLIX
The industry leader in video streaming keeps laying the groundwork for future expansion by implementing new strategies and launching new ventures, like gaming. In 2022, 500 or so staff will have been let go due to all these adjustments. Due to recent subscriber churn, Netflix has been forced to introduce an ad-tier plan, which will be implemented over the next few weeks.
LYFT
Since the outbreak, the ride-hailing app has struggled, but revenue still suffers, forcing the company to lay off more employees. According to the company, seven hundred of Lyft’s employees, or around 13% of its workforce, have been asked to quit. The company previously placed a hiring freeze in place in September, and this layoff will enable them to reduce costs.
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STRIPE
According to the business, stripe has formally announced its plans to lay off 14% of its workforce, or approximately 1,120 individuals. According to the CEO of Stripe, the company overhired during the epidemic, increasing its costs. The current financial environment has left them in a position from which they can only recoup through a round of layoffs.
SNAP
20% of the staff at Snapchat’s parent firm will be laid off, bringing the total to 1,000. As a result of a slowdown in operations, Snap may need to reduce its spending. It intends to change how employees are organized, which would inevitably impact thousands of Snap employees.
SEAGATE
Seagate is laying off about 3000 employees, or 8% of its workforce. The company also cited the state of the economy as a significant factor in its layoffs. It also mentioned how consumer demand had decreased due to excess inventory still held by its vendors.