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In recent months, several technology companies have announced cost-cutting measures, with Amazon, Apple and Google-parent Alphabet announcing hiring slowdowns or freezes.
For the tech sector, the pandemic boom has turned into a post-pandemic bust as rising interest rates rattle stock prices and inflation cut into profits.
The sector cut 9,587 jobs in October, the highest monthly total since November 2020, according to data from consultancy Challenger, Gray & Christmas cited by Bloomberg.
Total job cuts announced by US-based employers rose 13% to 33,843 in October, the highest since February 2021, according to a report.
PayPal
PayPal Holdings Inc. is scheduled to report quarterly results on February 9. The company’s shares fell 53% last year. They rose 2.3% to close Tuesday at $81.49.
PayPal has announced that it will cut around 7% of its total workforce, or about 2,000 full-time workers, as the digital payments company grapples with what it calls “the challenging macroeconomic environment.”
PayPal said it will make the cuts over several weeks, with some of its organizations going to be hit harder than others.
The company did not provide further details. PayPal is the parent of Venmo, Xoom, and Honey, among other brands. The company is headquartered in San Jose, California.
“Over the past year, we’ve made significant progress in strengthening and reshaping our business to address the challenging macroeconomic environment while continuing to invest to meet the needs of our customers,” PayPal Chairman and CEO Dan Schulman said Tuesday. it’s a statement.
“While we have made substantial progress on sizing our cost structure right and focusing our resources on our core strategic priorities, we have more work to do.”
Alphabet
Google parent company Alphabet is cutting 12,000 jobs in the latest round of white-collar layoffs sweeping across the tech sector.
Sundar Pichai, Alphabet’s chief executive, said the losses affect teams across the company, including recruiting and some corporate functions, as well as some engineering and product teams.
Pichai said in the note: “I am confident of the tremendous opportunity ahead of us thanks to the strength of our mission, the value of our products and services, and our early investments in AI.
‘To fully capture it, we will have to make difficult decisions. Therefore, we have conducted a rigorous review across all product areas and functions to ensure that our people and roles are aligned with our top priorities as a company. The roles we are removing reflect the outcome of that review. They span Alphabet, product areas, functions, tiers and regions.’
Goal
Facebook’s parent said in November it would cut 13% of its workforce, or more than 11,000 employees, in one of the biggest tech layoffs this year as it grapples with a weak ad market and rising costs.
Meta said it would cut 13% of its workforce, or more than 11,000 employees, in one of the biggest tech layoffs this year.
Like its peers, Meta hired aggressively during the pandemic to cope with a surge in social media use by consumers stuck at home.
But the boom times of the pandemic are over as advertisers and consumers stop spending in the face of rising costs and rapidly rising interest rates.
After pouring billions into CEO Mark Zuckerberg’s Metaverse vision with little to show for it, Meta has been faced with rising costs and shrinking profits.
Meta, once worth more than $1 trillion, is now valued at $256 billion after losing more than 70% of its value last year alone.
“Not only has online commerce returned to previous trends, but the macroeconomic downturn, increased competition and loss of advertising signals have caused our revenue to be much lower than I expected,” Zuckerberg said in a statement. message to employees, according to Reuters.
I was wrong and I take responsibility for it.
Mark Zuckerberg delivered news about the job cuts on a call with hundreds of Meta executives
In a brief call, a red-eyed Zuckerberg addressed the employees but did not answer questions.
He stuck to a script closely following the writing of the morning’s blog post, calling the surge in e-commerce investments a “big planning mistake.”
Twitter laid off half its workforce on teams ranging from communications and content curation to products and engineering following its $44 billion acquisition of Elon Musk.
The cuts affected some 3,700 employees, who learned their fate by email last week.
However, Bloomberg reported that Twitter was reaching out to dozens of employees who lost their jobs, asking them to come back.
Twitter laid off half its workforce on teams ranging from communications and content curation to product and engineering.
Elon Musk previously said there was no choice but to impose mass layoffs as the company loses hundreds of millions of dollars every year and needs a financial overhaul.
Sales force
In January, the cloud-based software company Salesforce announced that it will lay off 10% of its employees, or about 8,000 workers.
CEO Marc Benioff cited a difficult period for the tech sector, as well as excessive hiring during the coronavirus pandemic, which led to the decision.
Several weeks ago, it quietly laid off hundreds of employees.
‘Our sales performance process drives accountability. Unfortunately, that can lead to some leaving the business, and we support them during their transition,” a Salesforce spokesperson told CNBC in a statement in November.
Salesforce had 73,541 employees at the start of last year — it’s the largest employer in the San Francisco area.
Salesforce said in an August presentation that headcount increased 36% last year “to meet the increased demand for services from our customers.”
Amazon
Amazon said it would lay off 18,000 corporate and technology jobs in what will be the biggest job cuts in the company’s history.
Amazon reportedly lost $1 trillion for the year after its shares plunged from a high during the pandemic.
If the company goes ahead with its proposal to cut 10,000 jobs, it would lose about 3% of Amazon’s corporate employees.
The move comes after the company placed a hiring freeze, affecting major teams including Prime Video, Alexa and Amazon Fresh.
“We are facing an unusual macroeconomic environment and want to balance our hiring and investments with this economy in mind,” Beth Galetti, Amazon’s senior vice president of people and technology experience, wrote in a memo. seen by the wall street journal.
Intel
Intel Corp Chief Executive Pat Gelsinger told Reuters the “actions of the people” would be part of a cost-cutting plan.
The chipmaker recently said it would cut costs by $3 billion in 2023, before raising them to as much as $10 billion by 2025.
The adjustments would begin in the fourth quarter, Gelsinger said, but did not specify how many employees would be affected.
Some Intel divisions, including the sales and marketing group, could be cut by as much as 20%, Bloomberg News reported last month, citing people with knowledge of the situation.
Chipmaker Intel is reportedly planning major layoffs, likely in the thousands, as the PC market slows.
Intel had 113,700 employees in July, when it cut its annual sales forecast by $11 billion after missing second-quarter earnings estimates.
Santa Clara, California-based Intel declined to comment on the job cuts when contacted by DailyMail.com in October.
Intel has been affected by changing market trends, including the decline of traditional personal computers as smartphones and tablets increase in popularity.
Last quarter, global PC shipments, including desktops and laptops, were down another 15% from a year earlier, according to IDC.
Microsoft
Microsoft began layoffs of 10,000 employees in January, citing slowing customer demand and a negative economic environment.
“We are also seeing organizations across industries and geographies exercise caution as some parts of the world are in a recession and other parts anticipate one,” Chief Executive Officer Satya Nadella said in a company memo.
The layoffs affected nearly 5% of Microsoft’s global workforce.
Microsoft previously laid off fewer than 1,000 employees across various divisions last year, according to Axios.
In a statement, Microsoft executives said: ‘Like all companies, we regularly assess our business priorities and make structural adjustments accordingly.
Microsoft laid off fewer than 1,000 employees across various divisions last month, according to Axios