Elevated businesses have announced employment freezes, slowdowns, and in some cases, large-scale layoffs in the wake of declaring record values, massive hiring targets, and ambitious development projections. It’s the stripe bust all over again, but without the adorable sock puppet and with a pandemic, the world can’t seem to get over it.
Entrepreneurs and investors are getting ready for what appears to be a slowdown in the economy, possibly even a recession. Y Combinator’s portfolio founders received an email in May cautioning them to “prepare for the worst.” The startup accelerator issued a warning, stating that “global corporations, investment companies, poor margin companies, hard tech, and other startups with high burn and a long time to income” will likely be most negatively impacted by the downturn.
What More?
Not only startups in their business stages are suffering. With the pressure to reduce costs, higher inflation, an anticipated market downturn, and increasing interest rates, major web businesses, including Meta, Salesforce, and Netflix, have also lately announced employment freezes or layoffs. Even while they haven’t made any official layoff announcements, industry giants Microsoft, startup social media firms Snap, and cryptocurrency newcomer Coinbase have all paused hiring as a result of disappointing quarterly reports. The S&P 500 index, which is dominated by tech firms, had lost more than 20% of its value from the year’s commencement by late May.
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List Of Some Major Layoffs In 2022
- Gorillas
On May 24, the on-demand grocery app Gorillas cut half of its management personnel or around 300 employees globally. Gorillas co-founder and CEO Kagan Sumer stated in a message to colleagues that “the situation has continued to worsen since the markets went upside down two months ago in March.”
- PayPal
On May 26, PayPal got rid of further personnel in risk management and operations in Chicago, Nebraska, and Arizona, just a few weeks after firing more than 80 staff members at its San Jose headquarters.
- Bolt
The CEO of payments business Bolt, Maju Kuruvilla, informed staff on May 25 that the company is undertaking “many structural adjustments” and that over 100 people would be let go in order to “protect [Bolt’s] financial situation” amid unbearable market conditions.
- Netflix
In late April, Netflix fired a handful of journalists who were employed by its entertainment website Tudum. In mid-May, the company let go of an additional 150 workers; late June, it let go of an additional 300. Netflix CFO Spencer Neumann announced that the firm would be cutting back on some of its expenditures in order to bring costs under control. After the company’s less-than-impressive Q1 earnings report.
And…
- Shopify
In the month of June, Shopify let go of 10% of its workforce. Its CEO was very forthright in saying that the company had miscalculated the post-covid trends turning to over employment. He claimed that he increased hiring in anticipation of a corresponding rise in sales. He said that he had to fire workers because the market had changed. It might fire more workers in 2023 if the economy continues to deteriorate.
- Microsoft
They had cut off 1,800 workers in July, 200 in August, and a staggering 1,000 more recently as part of a restructuring. Contract workers and members of the Modern Life Experiences (MLX) group, which was formed in 2018 to recoup lost customers, are among the fired personnel.
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Many More…
- HCL Technologies
After laying off 350 workers worldwide for Microsoft’s news-related products. It is extremely likely that HCL will continue to lay off staff in 2023.
- Snap
In order to save expenses, it laid off more than 1,280 people or more than 20% of its staff. According to the reports, it had laid off roughly 1,300 of its 6,400 workers.
- Meta
One of the main big-tech businesses, Meta, has seen its executive’s net worth drop to almost half as a result of the economic slump. In a recent downsizing, Meta let go of 11,000 employees or around 13% of the workforce. Additionally, Mark Zuckerberg implied in a statement that he would be freezing recruiting and reducing discretionary spending.
- Shopify
In the month of June, Shopify let go of 10% of its workforce. Its CEO was very forthright in saying that the company had miscalculated the post-covid trends turning to over employment. He claimed that he increased hiring in anticipation of a corresponding rise in sales. He said that he had to fire workers because the market had changed. It might fire more workers in 2023 if the economy continues to deteriorate.
- Apple
The tech titan hasn’t announced any firing intentions as of yet, but it appears that it has joined the trend of cost-cutting measures brought on by the economic slump. CEO Tim Cook stated the company will institute a hiring freeze that may continue until late 2023 and that it would not be considering staff reduction anytime soon.
- Better.com
After beginning to reduce its employment in 2021 by letting go of 900 workers, in April of this year, it let go of another 1,200 to 1,500 workers, and in the next several months, 3,100 more were employed in India and the US. According to sources, it is anticipated to eliminate 250 or more posts in the upcoming months.
And…
Twitter is now controlled by Musk. His words make it abundantly clear that there would be additional mass layoffs lasting until 2023, even though Twitter has already lost a significant portion of its workers.
- Amazon
After terminating 10,000 people, regional authorities in California stated last Tuesday that they will fire 260 personnel from the data scientist and software development teams, with the cuts taking effect in 2023.
Conclusion On Layoffs
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