Big tech job cuts keep coming; Zoom latest to trim headcount
The tech trade began the yr with a wave of job cuts, round 50,000 in January alone, and there would not look like any let up this month.
The laptop maker Dell mentioned Monday that it is chopping about 6,600 jobs. Large and small tech firms went on a hiring spree in over the previous a number of years as a consequence of a requirement for his or her merchandise, software program and companies surged with hundreds of thousands of individuals working remotely.
However, even with the entire layoffs introduced this yr, most tech firms are nonetheless vastly bigger than they have been three years in the past. Here’s a have a look at a number of the firms which have introduced layoffs thus far.
February 2023
Zoom: The video-conferencing service is chopping about 1,300 jobs, or roughly 15% of its workforce.
CEO Eric Yuan mentioned in a weblog submit Tuesday that the corporate ramped up staffing throughout the COVID-19 pandemic, when companies grew to become more and more reliant on its service as individuals labored from house. Yuan mentioned Zoom grew thrice in dimension inside 24 months to handle demand.
The govt mentioned that companies proceed to depend upon its service post-pandemic however that changes are wanted.
“The uncertainty of the global economy, and its effect on our customers, means we need to take a hard — yet important — look inward to reset ourselves so we can weather the economic environment, deliver for our customers and achieve Zoom’s long-term vision,” he wrote.
Yuan mentioned he was additionally reducing his wage for the approaching fiscal yr by 98% and foregoing his 2023 company bonus, saying he was accountable for errors made on the San Jose, California-based firm and the actions being taken. Yuan’s govt management staff can also be lowering their base salaries by 20% for the approaching fiscal yr and forfeiting their 2023 company bonuses.
Dell: The laptop maker diminished its payroll by 5%, or about 6,600 jobs, saying that the steps it is taken to remain forward of eroding market circumstances are now not sufficient. Profits have slipped over the previous two quarters on the firm, which employed about 133,000 individuals firstly of final yr. The largest drop-off ever in PC deliveries was recorded final yr after a surge in purchases throughout the pandemic. Dell’s shipments dropped 16%.
January 2023
Amazon: The e-commerce firm mentioned it should minimize about 18,000 positions. That’s only a fraction of its 1.5 million-strong international workforce.
Salesforce: The firm lays off 10% of its workforce, about 8,000 workers.
Coinbase: The cryptocurrency buying and selling platform cuts roughly 20% of its workforce, or about 950 jobs, in a second spherical of layoffs in lower than a yr.
Microsoft: The software program firm mentioned it can minimize about 10,000 jobs, virtually 5% of its workforce.
Google: The search engine large turns into the newest within the trade to say it should alter, saying 12,000 staff, or about 6% of its workforce, could be let go.
Spotify: The music streaming service is chopping 6% of its international workforce. It didn’t give a selected variety of job losses. Spotify reported in its newest annual report that it had about 6,600 workers, which means that 400 jobs are being axed.
SAP: Germany-based SAP, Europe’s greatest software program firm, mentioned it it chopping as much as 3,000 jobs worldwide, or about 2.5% of its workforce, after a store drop in earnings.
PayPal: The digital funds firm says it can trim about 7% of its complete workforce, or about 2,000 full-time staff, because it contends with a difficult atmosphere.
IBM: Profits fell in the newest quarter on the expertise and consulting firm, nevertheless it mentioned the three,900 job cuts introduced in late January have been as a consequence of earlier sale of elements of its business. IBM offered its well being care knowledge business final yr and in 2021, it spun off its legacy tech division in 2021.
November 2022
Twitter: About half of the social media platform’s workers of seven,500 was let go after it was acquired by the billionaire CEO of Tesla, Elon Musk.
Lyft: The ride-hailing service mentioned it was chopping 13% of its workforce, virtually 700 workers.
Meta: The guardian firm of Facebook laid off 11,000 individuals, about 13% of its workforce.
HP: The laptop maker cited financial challenges in saying job cuts of as many as 6,000 positions over the following three years. Sales of PCs suffered probably the most extreme drop-off ever as a surge of tech shopping for by hundreds of thousands working from house started to fade.
August 2022
Snap: The guardian firm of social media platform Snapchat mentioned that it was letting go of 20% of its workers. Snap’s workers has grown to greater than 5,600 workers lately and the corporate mentioned on the time that even after shedding greater than 1,000 individuals, its workers could be bigger than it was a yr earlier.
Robinhood: The firm, whose app helped deliver a brand new technology of traders to the market, introduced that it could scale back headcount by about 23%, or roughly 780 individuals. An earlier spherical of layoffs final yr minimize 9% of its workforce.
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AP Technology Writer Michael Liedtke contributed to this report from San Francisco.
