Tech Company Layoffs: The COVID Tech Bubble BurstsTech Company Layoffs: The COVID Tech Bubble Bursts
UPDATED November 27, 2023 -- As COVID drove everyone online, tech companies hired like crazy. Now we are hitting the COVID tech bust as tech giants shed jobs by the thousands. Check back regularly for updates to our IT job layoffs tracker.
At a Glance
- Updated November 27, 2023 with layoff announcements from ByteDance, Veev, and Amazon.
When much of human activity moved online during the height of the pandemic, tech companies were thriving. Call it the COVID tech bubble. Now we’ve hit the COVID tech bust.
By the second half of 2022, tech companies had initiated significant layoffs -- something that had followed an extended period of frenzied tech hiring and attention to employee experience. Standard explanations for the cuts were that companies hired too many during the pandemic and they were looking at the specter of a recession in the months ahead. It sounds a lot like the dot-com boom and bust of yore. Not all companies are impacted equally. It’s the ones that hired at an accelerated rate during the boom that seem to be hitting the brakes right now.
At the same time, IT pros with cybersecurity, cloud, and data analytics/machine learning skills have remained in high demand so far.
In this space, InformationWeek will document some of the more significant layoffs, updated regularly. Be sure to check back.
Here's a look at the big tech layoffs so far:
November 2023 Layoffs
ByteDance, November 27, 2023 announcement. Layoff of 1,000 people.
The Chinese internet technology and developer of TikTok is laying off 1,000 employees in its once-promising gaming division according to Nikkei Asia. ByteDance's virtual reality arm Pico laid off 23% of its workforce this month, accounting for 300 employees, amid struggles with global sales. Overall, China's gaming industry has dealt with struggles as a global economic downturn continues to make its presence felt. Despite the decreased investment in gaming and future releases, ByteDance will shift its focus to increasing its exploration of generative AI like many other large tech companies in China. According to Chinese State Media reports, ByteDance invested in more than 19 gaming companies with around 30 billion yuan ($4.2 billion at current rates) between 2019 and 2022.
In terms of its future outlook, ByteDance will maintain its focus on its core businesses such as short-video platform TikTok, Chinese sister app Douyin, and e-commerce. The company believes the gaming division lacks focus and has limited prospects for monetization of titles, according to a person familiar with the restructure.
Veev, November 26, 2023 announcement. Layoff of entire workforce.
The construction tech startup focused on building and developing prefab, eco-friendly homes is laying off its entire workforce and shutting down operations according to The Information. Veev was the hotshot newcomer once valued at $1 billion, but investors are not likely to recoup any of the $600 million they put in, even if the company is able to sell some of its assets, according to a person with direct knowledge of the moves. Calcalist reported that the company has to shut down after an “abrupt cancellation of a capital-raising initiative.”
Amazon November 24, 2023 announcement. Strikes and protests across Europe during Black Friday.
The global e-commerce giant dealt with strikes on the busiest shopping day and weekend of the year across Europe in response to its working practices according to Reuters. The report elaborates on the details of “Make Amazon Pay”, which is a campaign coordinated by the UNI Global Union. The Union announced that strikes and protests would take place in more than 30 countries beginning on Black Friday until Cyber Monday. Many retailers advertise and initiate price cuts to breathe life into sales on the day and following weekend after the U.S. Thanksgiving holiday. Historically, many retailers have seen their revenue jump from red into the black on this day alone, hence the name. Amazon has extended this window to 10 days, with holiday discounts available from November 17 until November 27 which creates even more revenue.
Amazon's second-biggest market by sales last year was in Germany according to reports from Reuters. The Trade Union Verdi estimated that around 2,000 employees went on strike across six Amazon fulfillment centers in Germany. In response to a long-standing disagreement over wages in England, over 200 employees went on strike on Friday at Amazon's warehouse in Coventry. The protesting workers were chanting their demand for a pay rise to 15 pounds ($18.69) an hour. Meanwhile in Italy, Trade Union CGIL reportedly confirmed that over 60% of employees at the Amazon warehouse in Castel San Giovanni were on strike. However, Amazon refuted the claim and announced that over 86% of its workforce at the location reported for duty and made no impact on operations. This saga may not end anytime soon, stay tuned.
OpenAI, November 20, 2023 announcement. Over 500 OpenAI Workers Demand Board Resignations in Letter.
Fired CEO Sam Altman will reportedly join Microsoft and could potentially have employees of ChatGPT join him in the move. In what appears to be a threat to follow Altman to Microsoft, hundreds of remaining ChatGPT employees have signed a letter calling for the resignation of the company’s remaining board members. While this story continues to develop, dive into our coverage of each twist and turn in this saga below:
OpenAI, November 17, 2023 announcement. CEO Sam Altman fired, while President Greg Brockman resigned.
The AI research organization blew the doors off of the tech industry with the bombshell announcement that CEO Sam Altman had been fired, while President Greg Brockman resigned in response to the news, according to reports from our colleague Shane Snider at InformationWeek. “Mr. Altman’s departure follows a deliberative review process by the board, which concluded that he was not consistently candid in his communications with the board, hindering its ability to exercise its responsibilities. The board no longer has confidence in his ability to continue leading OpenAI,” said the company in a public statement. Altman helped create OpenAI in 2015, but will now be replaced on an interim basis by CTO Mira Murati. Stay tuned.
Amazon, November 17, 2023 announcement. Layoff of several hundred roles.
As part of a mass shift in direction and a focus on developing new forms of AI, Amazon will terminate several hundred roles in its Alexa division, according to an internal memo sent to employees this morning obtained by GeekWire. Pressure continues to mount as the company attempts to keep up in the rapidly advancing field of generative AI that has been spearheaded by OpenAI’s ChatGPT. “As we continue to invent, we’re shifting some of our efforts to better align with our business priorities, and what we know matters most to customers—which includes maximizing our resources and efforts focused on generative AI.,” wrote Daniel Rausch, vice president of Alexa and Fire TV, in the memo. Though Amazon refused to expound on the initiatives being discontinued, it has made recent cuts in other departments including music and gaming.
Beamery, November 16, 2023 announcement. Layoff of 105 people, 25% of workforce.
In an effort to reduce its total costs by 35%, the London-based hrtech startup is laying off 25% of its workforce according to Tech.eu. This is Beamery's second round of cuts this year after parting with 12% of its staff in January due to inflation and energy crises, high interest rates, and scant startup funding. “We have made some challenging decisions for the long term success of Beamery and are taking proactive steps to ensure a near term path to profitability,” said a company spokesperson when confirming the restructure.
Chewy, November 14, 2023 announcement. Layoff of 200 people.
The online pet supplies company that is dually headquartered in Florida and Massachusetts is laying off over 200 employees across multiple locations, according to TechCrunch. The cuts reportedly affected HR, recruiting, data and business intelligence, as well as some directors and higher managers, including a vice president. “This was a difficult decision that was carefully considered as part of our overall strategy and ongoing focus on becoming an ever more agile and disciplined company,” said Chewy spokesperson, Diane Pelkey when confirming the restructure.
CEO Sumit Singh detailed his concerns regarding inflation and its impact on Chewy's business model. The economic change has created more cautious consumers who are now buying lower-priced items, like dry dog food, instead of wet food, as well as curbing spending on pet treats. Chewy was sold to PetSmart in 2017 for $3.35 billion, but ultimately decided to split from the acquisition in 2020.
Amazon Gaming, November 13, 2023 announcement. Layoff of 180 people.
In an effort to emphasize developing its own titles, Amazon is laying off more than 180 employees in its gaming division and is also shutting down parts of the business that focus on streaming and supporting third-party games, according to an internal company memo viewed by CNBC. In addition to these changes, the restructure will also force Amazon to close its Game Growth and Crown Channel initiatives. According to the memo, Christoph Hartmann, VP of Amazon Games, explained that the company will now be locked in on upcoming launches such as “Throne and Liberty” and “Blue Protocol,” as well as future releases such as “Tomb Raider” and “The Lord of the Rings” games. In what has been a year long restructure, Amazon has carried out the largest layoffs in its history, cutting 27,000 jobs since last fall.
BigCommerce, November 8, 2023 announcement. Layoff of 7% of workforce.
In an effort to sustain growth and improve its go-to-market approach in that environment, the e-commerce platform is laying off 7% of its workforce according to PYMNTS. In an earnings call on Wednesday, November 8, BigCommerce said it expects the headwinds affecting the industry to continue as we approach 2024. “While headcount and non-headcount reductions impact all teams across the company, sales and marketing spending will see the largest impact as a result of the go-to market improvement,” said CFO Daniel Lentz during the call.
“Something like a third of all B2B sellers have yet to adopt eCommerce, and many of those who have, have adopted it rather suboptimally, and when you just think of the potential for usability improvements for their customers, cost savings efficiency from when fully rolled out, there is a very bright future for B2B and we intend to be the leader in that,” added CEO Brent Bellm.
Nextdoor, November 7, 2023 announcement. Layoff of 25% of workforce.
As of yesterday, Nextdoor announced a cost reduction plan that will target a reduction of its current GAAP personnel expenses of up to $60M annually, including a 25% reduction in its employee base, according to a company blog post. “While our opportunity and belief in the transformative power of community remains unwavering, and our business is financially strong with a healthy balance sheet, we must follow through on our commitment to our shareholders. This means right sizing our business and aligning our team and other expenses with our near term revenue expectations. We expect that these actions will position us to reach quarterly free cash flow breakeven by the end of 2025,” CEO Sarah Friar wrote in the memo. Friar also revealed that CFO Mike Doyle is resigning from his position, while Matt Anderson, Head of Finance and Strategy, has been appointed as the new CFO, both effective as of November 7, 2023. Doyle will remain at Nextdoor through December 1, 2023, to help ensure a smooth transition.
Zeus Living, November 7, 2023 announcement. Layoff of entire workforce.
The Airbnb-backed property management startup is shutting down operations in response to rising interest rates and the struggling real estate tech sector, according to The Information. Despite raising $150 million from tech investors in its lifetime, Zeus Living is now struggling financially, causing the company initiate the move. Zeus' business model leased furnished homes and apartments, and then sublet them to corporate workers looking for extended stays in nearly a dozen U.S. cities through its own site and other platforms like Airbnb.
Ava Labs, November 6, 2023 announcement. Layoff of 12% of workforce.
CEO Emin Gün Sirer tweeted that the crypto startup is laying off 12% of its workforce, which will impact multiple teams including marketing and communications according to Decrypt. The restructure will allow Ava Labs to “reallocate resources to double down on the growth of our firm and the Avalanche ecosystem,” Sirer wrote. Though he did not confirm the specific total of those impacted, the crypto recession doesn't appear to be ending anytime soon. Stay tuned.
Pico Interactive, November 6, 2023 announcement. Layoff of hundreds of people, total TBA.
Pico, the China-based virtual reality (VR) arm of ByteDance laid off hundreds of employees as the global demand for VR headsets weakens according to Reuters. According to reports, Pico will retain its hardware team, but much of its software team would be folded back into ByteDance's own product development team, which was decided in an internal meeting this week. Sales, video, and platform operation teams will also be impacted. CEO Zhou Hongwei believes that the VR industry is still in its infancy and Pico's “estimation for the industry and market growth was too optimistic as (real growth) did not go as fast as expected,” according to a transcript of his speech verified by two of Reuters' sources. The restructure will allow Pico to focus more on hardware and core technologies. Stay tuned.
F5, November 3, 2023 announcement. Layoff of 120 people, 2% of workforce.
The Seattle-based application security and delivery behemoth laid off 120 people, accounting for 2% of its workforce the company confirmed to GeekWire. The restructure will “align investments and resources to initiatives that accelerate our strategy to make hybrid and multi-cloud application security and delivery easier for our customers,” according to a statement from F5.
Nio, November 3, 2023 announcement. Layoff of 10% of workforce.
As Nio grapples with plans to spin off its non-core businesses to lower costs and improve efficiency, the Chinese EV maker is laying off 10% of its workforce in response to missing its sales targets according to Bloomberg. CEO William Li broke the news in a letter to employees, acknowledging that the cuts will take place this month as the company continues to post losses. Roles that are considered to be “duplicate” and “inefficient” will reportedly be eliminated, while any project investments that won’t contribute to the company’s financial performance within three years will be deferred or cut according to Li.
OpenSea, November 3, 2023 announcement. Layoff of 50% of workforce.
The popular NFT marketplace startup that once had a vice grip in the industry operating as the largest marketplace during the NFT boom across 2021 and 2022, announced that it is laying off half of its workforce according to Decrypt. During that span, OpenSea consistently raked in billions of dollars' worth of monthly trading volume for artwork, profile pictures, and other tokenized collectibles. While OpenSea wouldn't confirm an official layoff total, co-founder and CEO Devin Finzer explained the thought process behind the restructure in a series of Tweets.
“Today, we’re re-orienting the team around ‘OpenSea 2.0,’ a big upgrade to our product—including the underlying technology, reliability, speed, quality, [and] experience. We’re building a new foundation so we can innovate faster and we’ll have some experiences to share with you soon. We will change how we operate - shifting to a smaller team with a direct connection to users,” Finzer wrote. Expect a flatter organizational approach regarding future operations.
Viasat Copy, November 2, 2023 announcement. Layoff of 800 people, 10% of workforce.
In an effort to streamline business operations amid its ongoing strategy, the global communications company is laying off 800 employees accounting for 10% of its global workforce according to Bloomberg Law.
Informatica, November 1, 2023 announcement. Layoff of 545 people, 10% of workforce.
Despite reporting positive third quarter earnings, the California-based data management company is laying off 10% of its workforce accounting for 545 employees, according to Barron's. CEO Amit Walia detailed Informatica's outlook moving forward in a podcast conversation with Bloomberg. While Walia did not speak to the cuts during his interview, he did introduce a new $200 million stock repurchase plan.
Splunk, November 1, 2023 announcement. Layoff of 500 people, 7% of workforce.
As the cybersecurity firm prepares to become Cisco's biggest acquisition ever, Splunk announced that it will layoff 500 employees accounting for 7% of its global workforce according to CNBC. While the closing of the deal is still a few months out, Splunk isn't wasting time restructuring its business after already laying off 300 employees earlier this year.
“The changes we are announcing are not a result of our agreement with Cisco; they are the continuation of the important initiatives we’ve undertaken across Splunk for more than a year to align our resources and operating structure to deliver ongoing and incremental value for our customers. As we look ahead, it is important that we continue to evolve our organizational design to empower Splunkers worldwide to deliver results efficiently and more sustainably, all the while improving our ability to navigate ongoing market uncertainty,” wrote Splunk CEO Gary Steele in a memo to employees that was filed with the U.S. Securities and Exchange Commission. Most of the impacted employees are based in the U.S.
Faire, November 1, 2023 announcement. Layoff of 250 people, 20% of workforce.
The wholesale marketplace laid off 20% of its staff accounting for 250 employees, which is their second round of cuts in just over a year according to TechCrunch. In October of 2022, Faire laid off 7% of its staff according to reports from The Information, which totaled about 1,200 at that time of the restructure. While Faire's long term vision inspired the layoffs, it will continue to connect emerging independent businesses globally with local retailers to enable their goods to sell to larger audiences.
October 2023 Layoffs
StepStone, October 30, 2023 announcement. Layoff of 215 people, 5% of workforce.
The Germany-based job board platform announced layoffs that will impact 215 employees accounting for 5% of its workforce according to AIMGroup. The move appears to be in response to economic uncertainty as it attempts to restructure and optimize its business operations. Stay tuned.
Hippo Insurance, October 26, 2023 announcement. Layoff of 120 people, 20% of workforce.
The homeowners’ focused insurtech company announced it will layoff 120 employees accounting for 20% of its workforce according to Insurance Business Mag. The bombshell arrived days before Hippo was due to announce its third quarter financial results. As a result of the move, the company detailed hopes to drive efficiency and increase the focus on its strategic priorities in an SEC filing obtained by The Insurer.
Salsify, October 25, 2023 announcement. Layoff of 110 people.
The Boston-based e-commerce software company announced a restructure of its team that will include layoffs slated to impact 110 employees according to Biz Journals. According to CEO and co-founder Jason Purcell, Salsify is moving some roles abroad as the company aims to set itself up for a more agile and competitive future.
Exabeam, October 25, 2023 announcement. Layoff of 20% of its global workforce.
The California-based cybersecurity company announced it will layoff 20% of its global workforce in an effort to streamline operations amid continuing and challenging macroeconomic conditions, according to a public memo from CEO Adam Geller. “Today, Exabeam announced a business restructuring that will better align departments across the company for operational efficiency and continued innovation, as well as strengthen our financial health as we navigate global macroeconomic headwinds. We remain committed to AI-driven security operations innovation and will continue maximizing value for customers, partners, and the business,” Geller wrote in the memo.
Slync, October 25, 2023 announcement. Layoff of entire workforce.
The logistics tech startup once valued at $240 million by investors including Goldman Sachs is shutting down after being sued by its former CEO, Chris Kirchner, according to Forbes. Slync fired Kirchner in August of last year in response to fraud allegations. In a legal filing this month obtained by Forbes, the company detailed liquidation plans “because it maintains insufficient capital to continue to operate due to its financial underperformance and Kirchner’s [alleged] fraud.” The disgraced former CEO sought money from Slync to cover mounting legal fees associated with his defense against criminal charges brought by the US Department of Justice and Securities and Exchange Commission.
Charges allege that Kirchner had fraudulently sold $67 million of securities, and misappropriated more than $28 million in company funds for personal use. In another case, the Department of Justice alleged Kirchner instructed a Slync executive to move $20 million to accounts he controlled, which he later used to purchase a Gulfstream jet. Kirchner's persistent demands for assistance in paying his legal bills “put the company in a position where we couldn’t raise capital from new investors and selling the company wasn’t an option due to liability concerns from potential suitors,” said current CEO John Urban when reached for comment by Journal of Commerce, who initially broke the report. Stay tuned.
SiFive, October 24, 2023 announcement. Layoff of 130 people, 20% of workforce.
The semiconductor startup company announced it laid off 130 employees accounting for 20% of its workforce according to The Information. Despite having Google as client, the restructure has impacted all of the company's groups, including executives. Chip designs built by SiFive are based on an open chip architecture known as RISC-V, and competes against the recently public Arm Holdings. While both companies build the underlying designs chips are based on, neither produces the chips themselves. CEO Patrick Little described the cuts as significant which required SiFive to further examine its objectives. The company will continue to produce chips that are used in AI, automotive, consumer gadgets and low-power devices, as RISC-V continues to emerge as a point of contention in the U.S.-China tech war.
Pebble, October 24, 2023 announcement. Layoff of entire workforce.
While Pebble (formerly T2) was created to rival Twitter/X, the microblogging startup has announced that it is shutting down operations according to TechCrunch. Growing a much smaller but engaged platform designed to mimic X's signature features of verifications and direct messaging won't be enough to sustain its business in a highly competitive environment. Pebble's 20,000 registered users peaked at 3,000 active daily users, but its daily user figure fell to 1,000 following its rebranding from T2. “I think the competitive landscape evolved faster than we had thought,” he explains. “I didn’t think that quite as many people — established organizations and newcomers — would try to do the same thing that we were doing and in very similar ways,” said CEO Gabor Cselle regarding the announcement according to TechCrunch. Mastadon, Instagram Threads, and Post News are current alternatives to the X platform.
Parity Technologies, October 23, 2023 announcement. Layoff of 100 people, 30% of workforce.
In an effort to refocus on its core Polkadot blockchain and cryptocurrency services, Parity Technologies announced layoffs that will impact 100 employees accounting for 30% of its workforce according to Yahoo Finance. As the crypto industry grapples with widespread staffing cuts, Parity's restructure will affect its marketing and business development departments. CEO Björn Wagner confirmed the cuts through a company spokesperson via Bloomberg.
Nomad Health, October 20, 2023 announcement. Layoff of 119 people, 17% of workforce.
The healthcare staffing startup laid off 119 employees accounting for 17% of its corporate workforce according to Forbes. The uptick in demand for travel nurses and temporary healthcare workers created by the COVID pandemic has drastically declined. “Nomad’s leaders, starting with me, were too optimistic about the trajectory of our market. This means, unfortunately, that we built our team for an economic reality that no longer exists,” CEO Alexi Nazem wrote in a memo to employees obtained by Forbes.
Convoy, October 19, 2023 announcement. Layoff of 500 people, 100% of workforce.
The Seattle-based digital freight network announced it will be shutting down its core business and laying off the majority of its workforce, according to GeekWire. An oversaturated market paired with a declining demand helped usher in the drastic change at Convoy. The company specialized in matching truckers with shippers in an Uber-like environment, and had notable investors such as Jeff Bezos and Bill Gates. “In short, we are in the middle of a massive freight recession and a contraction in the capital markets. This combination ultimately crushed our progress at the same time that it was crushing our logical strategic acquirer – it was the perfect storm,” said CEO Dan Lewis in his memo to employees.
Google News, October 18, 2023 announcement. Layoff of 40 people.
Google's news division initiated layoffs this week affecting 40-45 employees, amidst thousands of other internal cuts this year according CNBC. Though a spokesperson for Google confirmed hundreds of active news employees, the changes were still critical in an effort to streamline the organization. “We’re deeply committed to a vibrant information ecosystem, and news is a part of that long-term investment,” the spokesperson said to CNBC.
Stack Overflow, October 16, 2023 announcement. Layoff of 28% of workforce.
The question-and-answer forum for programmers is laying off 28% of its workforce in response to ChatGPT's emergence and upsetting of the industry, according to WKBW Buffalo. CEO Prashanth Chandrasekar shared a public blog post announcing the cuts, detailing Stack Overflow's overall plan to reach profitability. “As we finish this fiscal year and move into the next, we are focused on investing in our product. As such, we are significantly reducing the size of our go-to-market organization while we do so. Supporting teams and other teams across the organization are impacted as well,” Chandrasekar wrote in the post.
LinkedIn, October 16, 2023 announcement. Layoff of 660 people, 3% of global workforce.
LinkedIn announced layoff plans that will affect 660 employees accounting for 3% of its global workforce according to Axios. The restructure will directly impact engineering, product, talent and finance teams. LinkedIn's first round of layoffs this year arrived in May accounting for 716 employees. While revenue and user reporting has signaled consistent growth over the last two years, Monday's announcement alludes to a greater focus on AI.
“While we are adapting our organizational structures and streamlining our decision making, we are continuing to invest in strategic priorities for our future and to ensure we continue to deliver value for our members and customers,” the company said in a statement obtained by Axios.
Adda247, October 14, 2023 announcement. Layoff of 300 people.
The edtech start up has laid off around 300 employees across multiple verticals according to Entrackr. During October of last year, Adda247 scored significant backings from multiple entities totaling $35 million led by WestBridge Capital, while Google teamed up with existing investors Info Edge, Asha Edu Tech and JM Financial. Adda247 also happens to be one of the few Indian startups where Google is a direct investor. “The downsizing was done to extend the runway as funding tap has dried up for the edtech companies and the investment environment is unlikely to improve for the sector,” said a source who requested anonymity according to Entrackr.
Qualcomm, October 12, 2023 announcement. Layoff of 1,258 people, 2.5% of workforce.
The semiconductor manufacturer announced layoffs impacting 1,258 employees accounting for 2.5% of its workforce according to CNBC. The cuts are expected to take place around December 13, and will primarily affect two California-based offices, 1,064 of its San Diego employees and 194 of its Santa Clara employees. Neither location will be subject to closure at this time.
Lending Club, October 12, 2023 announcement. Layoff of 172 people, 14% of workforce.
The San Francisco-based financial services company announced it will layoff 172 employees accounting for 14% of its workforce according to Bloomberg. The move was initiated in an effort to cut costs amidst an expected decline in third quarter profit by Lending Club. Bloomberg reports detailed an expected profit of profit of $4 million to $5 million, a stark contrast from $43.2 million a year earlier. “We continue to proactively implement various measures to navigate the persistent and ongoing macroeconomic headwinds and the resulting pressure in our marketplace, primarily driven by higher interest rates,” Chief Executive Officer Scott Sanborn said in a memo to employees.
Flexport, October 6, 2023 annoncement. Layoff of 30% of workforce.
The global logistics company will layoff 30% of its workforce in an effort to restructure company finances amidst a drastic decline in revenue according to The Wall Street Journal. For Flexport founder Ryan Petersen, this is the first step of many more in an attempt to return to profitability. “Ryan has been very transparent in the need to drive the growth and cost discipline required to return Flexport to profitability. We will do so in a way that doesn’t impact customer service and our ability to help grow our customers’ businesses,” a Flexport spokesperson said to The Wall Street Journal.
Juniper Networks, October 6, 2023 announcement. Layoff of 440 people.
The Bay Area-based cloud service company detailed layoff plans that will affect 440 employees in an SEC Filing today according to Forbes. The move arrives as the first step in a restructure plan to enable long term growth.
Enovix, October 5, 2023 announcement. Layoff of 185 people.
The advanced silicon batter developer announced it will lay off 185 employees, including over 125 contractors at its factory based in Fremont, California, according to a memo shared on the company's website. The bulk of Enovix's operations are being moved to Asia in hopes to be closer to the smartphone manufacturers that could potentially but its cells. The Fremont facility will transition away from its current manufacturing focus and instead create new products as a center for innovation. The restructure alludes to the growing reality within the lithium-ion battery industry that proximity to materials, labor, and customers is crucial for success according to The Information.
Qualtrics, October 4, 2023 announcement. Layoff of 780 people, 14% of workforce.
In an effort to reduce costs and restructure operations, Qualtrics announced it will layoff 780 employees accounting for 14% of its workforce according to GeekWire. The need to address the internal complexity created by its past hiring and growth spurred the move, though its office in downtown Seattle will remain in operation despite the cuts. “Rapid hiring was essential to enable our growth up to this point, but it also created complexity that does not support continued growth at our scale. Simply put, the organizational structures, work processes and the way we made decisions previously don’t work for the company we’ve become, or the company we aspire to be,” said CEO Zig Serafin in his memo to employees obtained by GeekWire. Several hundred roles are changing or moving locations over the next year in addition to the layoffs according to Serafin.
Hopper, October 4, 2023 announcement. Layoff of 250 people, 30% of workforce.
The online travel and fintech company announced layoffs affecting 250 employees, accounting for 30% of its workforce according to Skift. The move arrives as Hopper pursues profitability and the twin goals to boost the company’s travel app and B2B businesses, along with continuing to build its direct global hotel supply. “We needed to make organizational changes to properly support these two critical business objectives,” a Hopper spokesperson said to Skift.
Bird, October 4, 2023 announcement. Layoff total TBA.
After the shared micromobility company was delisted from the NYSE last week, CEO Michael Washinushi shared a memo with employees on Wednesday that detailed another upcoming round of layoffs according to TechCrunch. While the total number of those impacted remains unclear, the move appears to be in response to Bird's acquisition of its competitor Spin, which is another shared e-scooter company based in America. “With any acquisition and integration process, there are redundancies in roles and scope that the business isn’t able to maintain while meeting its goals,” Washinushi said in his letter to employees. Time will tell if the business move and acquisition can help Bird reach profitability for the first time since going public in November 2021.
Meta, October 4, 2023 announcement. Layoff of total TBA.
Meta's workforce is going through a restructure again, as layoffs were announced in its metaverse-oriented Reality Labs division on Wednesday according to Reuters. The Reality Labs team focuses on creating custom silicon, though Reuters was unable determine the extent of the cuts to the unit, called Facebook Agile Silicon Team, or FAST. The team of roughly 600 employees developed custom chips to equip Meta's devices to perform unique tasks and operate more efficiently, differentiating them from others entering the nascent AR/VR market. Unfortunately, Meta has struggled to produce chips that can compete with silicon produced by external providers and has turned to chipmaker Qualcomm to produce chips for its devices currently on the market.
Depending on the extent of the cuts, CEO Mark Zuckerberg's 'Metaverse' project built around augmented and virtual reality products enabling the virtual world could take a serious hit. Furthermore, Meta has slashed nearly 21,000 jobs since November of last year. The moves have been in response to dwindling revenue growth, high inflation, and concerns that Reality Labs was losing too much money, as it has sought to reassure investors that it was reining in costs. Stay tuned.
Twitch, October 3, 2023 announcement. Layoff total unconfirmed.
Twitch has initiated its second round of layoffs this year, though the move is reportedly much smaller than the 400 cuts back in March according to Games Industry. The customer experience department will be impacted most, as the company shifts to rely more on outsourcing vendors to fulfill those roles. Stay tuned for more information when it becomes available.
Chainalysis, October 2, 2023 announcement. Layoff of 150 people, 15% of workforce.
The blockchain data platform has initiated its second round of layoffs this year as it cuts 150 employees, accounting for 15% of its workforce according to Forbes. Chainalysis' marketing and business development teams focused on the private sector will be impacted again, as their jobs have continue to rise in difficulty in an environment where the price of bitcoin is down 60% from its all time high of $69,000 in November 2021. In his memo to employees on Monday, CEO Michael Gronager detailed Chainalysis' plans to expand its retreat from the commercial market, while concentrating on more stable government contracting. As blockchain activity continues to slow down, “We are going to focus on profitability and maturity and to ensure that we are agile in light of evolving market forces,” said Madeleine Kennedy, vice president of communications.
September 2023 Layoffs
Epic Games, September 28, 2023 announcement. Layoff of 870 people, 16% of workforce.
The creators of the wildly popular Fortnite video game franchise announced it will layoff 870 employees accounting for 16% of its workforce according to Bloomberg. “For a while now, we’ve been spending way more money than we earn,” Chief Executive Officer Tim Sweeney wrote in a memo to employees obtained by Bloomberg. Despite Sweeney's long-term optimism that layoffs would not be included in the transition, hindsight rendered the idea unrealistic.
In his email, Sweeney assured the retained employees that there are no more layoffs being planned at this time. However, he did note that an additional 250 employees will leave Epic through two divestitures: the sale of music site Bandcamp, and a spinoff of marketing company SuperAwesome. Nearly two-thirds of Epic's cuts impacted teams outside of the core development department.
Cisco, September 17, 2023 announcement. Layoff of 350 people.
Beginning next month, the digital communications technology giant will be laying off 350 employees in Silicon Valley in its latest restructure announcement according to Market Watch. Those impacted will be 227 people in San Jose, and another 123 in nearby Milpitas, Calif., effective Oct. 16. Stay tuned.
Sage Therapeutics, September 15, 2023 announcement. Layoff of 290 people, 40% of workforce.
The biotech company's commitment to developing novel therapies for brain disorders has taken a hit as Sage Therapeutics announced a 40% reduction of its workforce following the US Food and Drug Administration’s (FDA) rejection of its drug Zurzuvae, according to Biz Journals. The drug is designed to target adults with major depressive disorder (MDD) and ease symptoms they face daily. Sage’s leadership is also changing with the departure of the current chief scientific officer (CSO) Al Robichaud and the chief development officer (CDO) Jim Doherty according to Pharmaceutical Technology. Stay tuned.
Airtable, September 14, 2023 announcement. Layoff of 237 people, 27% of workforce.
The code-free software company announced that it will layoff 237 employees accounting for 27% of its workforce according to Forbes. After letting 254 people go in December of 2022, CEO and Founder Howie Liu said this round of cuts will be part of a larger restructure plan to focus the company on winning large enterprise clients and curb spending. “I let myself get caught in the hyper-competitive environment at that time. We had the capital and said, let's hyper-scale; let's recruit as many smart people as we can and just throw them into the business and see what they can do,” says Liu regarding the layoffs.
On a positive note, Airtable will be cash flow positive after this round of layoffs. The impact of the latest restructure will be felt company-wide, but the largest cuts will affect product and sales teams that focused on selling and servicing smaller clients. The realignment will allow Airtable to pursue bigger deals and use cases moving forward.
Google, September 13, 2023 announcement. Layoff of at least 200 people.
Google is reportedly laying off employees that could ultimately account for hundreds of positions across its global recruiting team as hires continue to decline according to Semafor. Those impacted began posting the news on social media earlier today, while the company declined to detail the percentage of the impacted recruiters. However, Google did note that the volume of requests for its recruiters has drastically decreased.
“In order to continue our important work to ensure we operate efficiently, we’ve made the hard decision to reduce the size of our recruiting team. We’re supporting everyone impacted with a transition period, outplacement services, and severance as they look for new opportunities here at Google and beyond,” Google spokesperson Courtenay Mencini said in a statement obtained by Semafor.
Binance, September 12, 2023 announcement. Layoff of 100 people, 33% of workforce.
Binance already let 1,000 employees go in July and will follow up by laying off 100 more, accounting for 33% of its workforce according to Bloomberg. The report also revealed that Binance US President and CEO Brian Shroder has resigned from his position at the company, amid several other executive shake ups. Binance US Chief Legal Officer Norman Reed will step into the vacated role, while CEO Changpeng ‘CZ’ Zhao insists that business is fine despite negative coverage surrounding the company. Binance also happens to be locked in litigation with the SEC after being sued for blatant disregard for the federal securities laws according to reporting from The Wall Street Journal. It feels like more to this saga is on the way, so stay tuned. Zhao believes that the company is stronger than its ever been despite the chaos. Even with the latest executive exit and legal woes with the SEC, Binance remains the world's largest cryptocurrency exchange by volume according to Decrypt.
Roku, September 6, 2023 announcement. Layoff of 360 people, 10% of workforce.
In an effort to lower its year-over-year operating expense growth rate, Roku announced its third round of layoffs since November of last year that will impact 360 employees or 10% of its workforce, according to CNBC. The company will also consolidate office space, slow the pace of new hires, and reduce outside services expenses, though Roku raised its guidance for its third-quarter revenue and EBITDA. Stay tuned as Roku attempts to pivot toward profitability and ultimately attracting new investors.
August 2023 Layoffs
Zebra Technologies, August 28, announcement. Layoff of 700 people, 7% of workforce.
The mobile computing company announced today that it will be laying off 700 employees accounting for 7% of its workforce according to Chicago Business. While more information on the news is pending, Zebra's SEC filing reportedly revealed the restructure earlier this month. Buyouts could also be in play for those impacted. Stay tuned for more details in the coming weeks.
Getir, August 22, 2023 announcement. Layoff of 2,500 people, 11% of workforce.
The Turkish grocery delivery company announced global layoffs that will impact 2,500 employees across five countries, accounting for 11% of its workforce according to Reuters. After closing operations in Italy, Spain, and Portugal last month,Getir says it will maintain business as usual in Turkey, the UK, Germany, the Netherlands and the United States. The online delivery industry surged in growth and popularity during the height of the COVID-19 pandemic, but we're seeing balance continue to return to the retail industry as time goes on.
Twiga, August 20, 2023 announcement. Layoff of 283 people, 33% of workforce.
The Africa-based e-commerce food distribution company laid off 283 employees accounting for 33% of its workforce according to TechCabal. The restructure is in response to tough market conditions that appear to be ongoing for many tech companies. Twiga is “on a transformative path in the last few months to become a lean, agile, cost-efficient organisation, undertaking several interventions to adopt and sustain the business during these economic times,” CEO Peter Njonjo said in a statement to TechCabal. The cuts arrive after a redesigned commercial sales model announced by Twiga in June.
SecureWorks, August 14, 2023 announcement. Layoff of 300 people, 15% of workforce.
Having already initiated a 9% workforce reduction in February, SecureWorks announced a new round of layoffs yesterday that will impact 300 employees accounting for 15% of its workforce according to TechCrunch. CEO Wendy Thomas detailed a need to simplify and scale SecureWorks' business to deliver profitable growth in the future in a memo to employees. “Under the Plan, the Company intends to rebalance investments cross-functionally in alignment with the Company’s current strategy and growth opportunities, such as focusing on the higher value, higher margin Taegis solutions, optimizing the Company’s organizational structure to increase its scalability, and other priorities, to better position the Company for continued growth with improving operating margins over time,” according to an SEC filing by SecureWorks.
Shutterfly, August 10, 2023 announcement. Layoff of 246 people.
In an effort to amplify business operations, Shutterfly announced it will close its Minnesota-based manufacturing plant, signaling layoffs accounting for 246 employees according to CBS News. The production work in Shakopee will be spread out to its larger hubs when it is officially closed in June of 2024, while cuts are slated to begin in phases starting this October.
Rapid7, August 8, 2023 announcement. Layoff of 470 people, 18% of workforce.
On Tuesday, the Boston-based cybersecurity firm announced layoffs of 470 employees accounting for 18% of its workforce according to The Boston Globe. Rapid7's SEC filing indicated that the restructure is “designed to improve operational efficiencies, reduce operating costs and better align the company’s workforce with current business needs.” As a requirement of the savings plan, Rapid7 will pay $24M to $32M in severance and other costs, as well as closing an unspecified amount of offices. “It will increase our capacity to invest where customers need it, and give us the flexibility to scale intentionally, foster innovation, and improve processes,” said CEO Corey Thomas in his memo to employees.
Dell, August 7, 2023 announcement. Layoff total unconfirmed.
Dell has confirmed a new round of layoffs this week that will impact its core sales teams, while it would not confirm whether these layoffs were in addition to the 6,650 job cuts detailed in February, according to CRN. The tech giant is shifting strategies to implement a newpartner-led go-to market modelthat pays its direct sales force more to sell storage products through the channel. “With this new strategy around partner-first, every one of our reps is going to look at their comp plan and see, I make X if I sell it directly. I make X-plus if I sell it through a partner,” said Dell President of Sales and Customer Operations, Bill Scannell in a statement to CRN. By coordinating sales teams with partners Dell can multiply the efforts of both. Stay tuned.
Spinny, August 2, 2023 announcement. Layoff of 300 people, 5% of workforce.
The used car retailing platform backed by Tiger Global laid off 300 employees accounting for 5% of its workforce, as it attempts to cut costs by merging its Truebil and Spinny Max divisions according to Money Control. As the demand for used cars continues to dwindle, Co-founder and CEO Niraj Singh announced the restructure plans on August 2. “This business reorganization will strengthen our go-to-market business model, reduce costs and improve our margin profile, putting us on an expedited path to profitability. However, it will impact approximately 4.5 percent of our total workforce as we consolidate our operations under a single brand,” a Spinny spokesperson confirmed in a statement to Money Control.
Tekion, August 2, 2023 announcement. Layoff of 300 people, 10% of workforce.
The California-based SaaS automation startup laid off 300 employees accounting for 10% of its workforce earlier this week in an effort to cut costs, according to Inc42. With a majority of its team based in India, at least 200 of the impacted employees are from Tekion's offices located in Bengaluru and Chennai. The restructure primarily affects tech, sales, marketing, talent acquisition, and human resources teams. Former Tesla CIO Jay Vijayan founded Tekion in 2016. The company is a cloud-native SaaS platform thatutilizes machine learning and A.I. to connect original equipment manufacturers (OEMs), retailers/dealers and consumers on a single platform.
July 2023 Layoffs
Kape Technologies, July 30, 2023 announcement. Layoff of 200 people, 30% of workforce.
The cybersecurity firm behind many popular VPN services such as ExpressVPN, CyberGhost, and Private Access Internet (PIA) will layoff 200 employees accounting for 30% of its workfoce, according to TechReport. The restructure will impact multiple departments including the three major teams mentioned above, as well as many high-ranking executives. Former CTO Dan Gericke decided to walk out entirely, though Kape Technologies has yet to officially announce the cuts. However, that hasn't stopped employees from talking about the moves on LinkedIn according to TechReport. “I decided to exit along with my many amazing colleagues that were terminated and am officially announcing my departure as CTO of ExpressVPN and the Kape Privacy Division,” Gericke said in a LinkedIn post. Stay tuned.
Milkbasket, July 27, 2023 announcement. Layoff of 400 people, 67% of workforce.
After losing its top three executives, the subscription commerce firm is laying off 400 employees accounting for 67% of its workforce, according to Entrackr. The move will reportedly eliminate the offline marketing, sales, and head office teams, while Reliance is expected to launch a new ‘Jio Smart Daily’ platform, and phase out the Milkbasket brand altogether. Jio Smart will absorb Milkbasket's remaining team members. However, former co-founder Yatish Talvadia, Chief Operating Officer Abhinav Imandi, and Chief Financial Officer Gaurav Srivastava left Milkbasket after the integration.
Copia, July 26, 2023 announcement. Layoff of 350 people, 25% of workforce.
The Kenyan e-commerce platform that serves low-income households is laying off 350 employees accounting for 25% of its workforce, according to TechCabal. The move raises Copia's reduction total to 700 in 2023 alone. “Given that the economic downturn and the constrained capital markets are likely to continue for some time, Copia is optimizing a number of key processes in its operations in Kenya to provide a better service to its customers and to drive sustained operating profitability,” the company said in a statement to TechCabal.
Viaplay, July 20, 2023 announcement. Layoff of 450 people, 25% of workforce.
The Nordic video streaming service is laying off 25% of its staff and pulling streaming out of the U.S. and UK as it evaluates a potential sale according to Deadline. Viaplay's new strategy arrived with a new CEO, Jorgen Madsen Lindemann, who is taking over for Anders Jensen as of last month. According to reporting from Deadline, a handful of senior executives will be laid off including EVP and Chief Commercial Officer, Nordics Fillipa Wallestam, Head Of International Scripted, Thomas Axelsson, and Executive Producer Isabelle Hultén. While it will continue to focus on Nordic originals, Viaplay will end its low tier non-sports offering in the U.S. and UK.
This move allows the company to focus on the Nordic and Dutch markets, paired with the sale of content internationally via Viaplay Select.“We are today announcing a new strategy and plan, which includes, but is not limited to, focusing on our core Nordic, Netherlands and Viaplay Select operations; implementing a new operational model; downsizing, partnering or exiting our other international markets; rightsizing and pricing our product offering in the Nordics and undertaking a major cost reduction program,” Lindemann said regarding the layoff announcement.
Microsoft, July 18, 2023 announcement. Layoff of 1,000 people.
Over the past week, Microsoft has laid off more than 1,000 employees that mostly impact customer service and sales teams, according to Business Insider. As part of the restructure, its “Digital Sales and Success” team will be shut down, along with cuts affecting engineering project managers and marketing teams. The company also decided to eliminate the customer solutions manager role, moving very few employees to another role called customer success account management. The surprise here is that these layoffs surpass the 10,000 layoffs that Microsoft planned earlier this year. “What was promoted as one of the largest customer service groups in the industry is now struggling to keep up with demand,” said a person familiar with the changes according to Insider. Just last week, GeekWire reported that Microsoft laid off 276 employees impacting customer service, support, and sales teams. It feels like there's going to be even more to this story as we head towards 2024. Stay tuned.
Binance, July 14, 2023 announcement. Layoff of 1,000 people.
The giant crypto exchange laid off 1,000 employees globally, as it deals with a federal investigation in the U.S. according to The Wall Street Journal. U.S. regulators have attempted to reign in and control the exchange industry, with the SEC suing Binance and its founder,Changpeng Zhao, last month. The suit alleges that Binance illegally operated in the U.S. and misused customer funds, though Binance has denied the allegations. The exchange has also experienced setbacks in obtaining licenses to operate its business in Europe. An ongoing investigation by the Department of Justice looms as Binance's biggest concern, while many of its executives believe charges against the firm and Zhao will arrive sooner than later. According to The Wall Street Journal, Zhao's refusal to relinquish control could put Binance's future and survival in jeopardy.
Stitch Fix, July 12, 2023 announcement. Layoff of 400 people.
The online personal shopping company announced the closing of its Pennsylvania warehouse along with laying off 400 employees beginning in September, as it faces revenue declines according to The Philadelphia Inquirer. Founder and interim CEO Katrina Lake confirmed that Stitch Fix will close its Dallas warehouse, as well as reducing to three fulfillment centers in Atlanta, Indianapolis, and Phoenix. The company is also considering a departure from the U.K. market. Stay tuned.
Latch, July 10, 2023 announcement. Layoff of 59% of its workforce.
After acquiring Honest Day's Work (HDW) earlier this month, Latch plans to leverage HDW's global workforce, reduce operational spend, and create a stronger foundation for growth through reducing its current U.S.- and Taiwan-based workforce by 59% before November 1, 2023 according to Business Wire. The influx of HDW's talent philosophy and global team while decreasing headcount, should allow Latch to implement additional cost cutting moves on SaaS software licenses and other systems. The company is unveiling a new leadership team alongside Jamie Siminoff, who is expected to take over as CEO, as Latch leverages a more efficient, remote global workforce to be based in St. Louis, MO.
“These new measures are focused on creating the best foundation for growing the business long term. Discipline and efficiency are not only expected to save Latch millions of dollars but should also accelerate and simplify processes, both internally and externally. It is our responsibility to our customers to provide the best products and services at the lowest cost. Doing that should result in increased sales and profits, creating value for our stockholders,” Siminoff said in his memo to employees.
Microsoft, July 10, 2023 announcement. Layoff of 276 people.
Just one week after the start of its fiscal year, Microsoft has initiated a second round of layoffs this year accounting for 276 employees on Monday, after slashing 10,000 positions back in January according to CNBC. Clients have been looking for ways to money on their cloud computing bills as economic uncertainty continues to arise. While a Microsoft spokesperson declined to specify the total number of layoffs in its latest move, the company filed a notice on Monday detailing a reduction of 276 employees in its home state of Washington according to CNBC.
Evernote, July 7, 2023 announcement. Layoff total of 98 people, all of U.S. workforce.
After being acquired last November by Italian app-maker Bending Spoons, Evernote has continued to go through changes as it announced layoffs of nearly all employees located in the U.S. and Chile according to SFGATE. Bending Spoon's CEO Luca Ferrari said, “most of Evernote's operations will be transitioned to Europe,” in a statement to SFGATE. Ferrari shared his belief that a “significant boost in operational efficiency that will come as a consequence of centralizing operations in Europe.” The latest move arrives after Evernote laid off 129 employees in February according to TechCrunch. “Our plans for Evernote are ambitious as ever: Going forward, a growing, dedicated team based in Europe will continue to assume ownership of the Evernote product,” Ferrari noted.
Amdocs, July 6, 2023 announcement. Layoff of 2,000 people, 6% of workforce.
After laying off 3% of its workforce in February, Amdocs has initiated a second round of layoffs that will impact 2,000 employees or 6.5% of its workforce according to CTech. The reduction rate will be slightly lower in Israel, with Amdocs dismissing 200 employees or 5% of the 5,000 employed in the country. “Amdocs, like other leading global companies, continually assesses the global macroeconomic conditions and takes appropriate measures to ensure sustained growth. As part of this, we periodically initiate efficiency processes while maintaining investments in areas of growth, in line with our strategic plan,” the company wrote in a statement obtained by CTech.
FNZ, July 6, 2023 announcement. Layoff of 1,000 people, 15% of workforce.
The UK-based platform software giant and provider for Abrdn, Quilter, and Aviva is laying off 1,000 employees, accounting for 15% of its workforce, according to Citywire. FNZ attributes the restructure to being a result of finishing projects and ‘realizing synergies’ following acquisitions, but it will redeploy employees to other growth areas and absorb staff from the companies it has partnerships with. This move follows FNZ's most recent restructure in December of 2022.
June 2023 Layoffs
IRL, June 23, 2023 announcement. Layoff of entire workforce.
IRL, Gen Z's do-it-all social app created to rival Facebook as an event organizing alternative is shutting down according to TechCrunch. After raising over $200M in venture capital, the company is pumping the brakes on future planning. In real life, an internal investigation by IRL’s board of directors found that 95% of the app’s reported 20 million users were “automated or from bots,” The Information firstreported. Oh, the irony!
Grab, June 20, 2023 announcement. Layoff of 1,000 people, 11% of workforce.
Southeast Asia's leading ride-hailing and food delivery app announced it lay off 1,000 employees, accounting for 11% of its workforce according to Reuters. CEO Anthony Tan cited the need to manage costs and ensure more affordable services long-term, as the cuts are the largest move by Grab since the start of the pandemic. According to Tan's memo to employees, these layoffs aren't a shortcut to profitability, but instead, a strategic restructure to adapt to fast-changing market conditions.
OLX Group, June 20, 2023 announcement. Layoff of 800 people.
The online marketplace and classifieds business arm of Prosus has decided to layoff 800 employees globally according to TechCrunch. The surprising part of today's announcement is that these cuts arrive just months after OLX confirmed plans todecrease its global workforce by 15% (1,500 jobs)in January. Based in Amsterdam, OLX operates in over 30 countries globally, and confirmed that today's layoffs are not limited to a particular market or division according to TechCrunch. The company has also began closing operations of its automotive business unit, OLX Autos, in some markets after unsuccessfully sourcing potential buyers and investors. OLX did not confirm whether the move impacted any C-level officers.
Bitwise, June 14, 2023 announcement. Layoff of 900 people, 100% of workforce.
Despite reassurance from Bitwise's now-fired CEOs noting companywide furloughs announced on Memorial Day were to be temporary, the company announced it will layoff all of its employees according to Bakersfield. Unforeseeable circumstances and other reasons were the catalyst for the restructure according to Bitwise's internal memo. The company raised more than $150 million in outside capital since its founding in 2013. What will become of Bakersfield’s Stria LLC, a 140-employee business processes outsourcing company Bitwise acquired in August, is currently in limbo. With a promise from Bitwise to pay out compensation over a two-year period, what lies ahead for the subsidiary? Stay Tuned.
GrubHub, June 12, 2023 announcement. Layoff of 400 people, 15% of workforce.
In an email to staff, the food delivery platform laid off 400 employees, accounting for 15% of its workforce to maintain competitiveness according to CNBC. GrubHub has struggled to gain market share from rivals such as DoorDash or UberEats according to research from Bloomberg Second Measure. “There is no doubt whatsoever that we have a solid foundation in place and an immense opportunity ahead of us — but it is also clear that we need to make some tough decisions in order to maintain our competitiveness, deliver the best possible service for diners and our other partners, and be successful for the long-term,” CEO Howard Migdal wrote in the memo.
Byju's, June 7, 2023 announcement. Layoff of 1,000 people.
The multi-national edtech company is initiating its second round of cuts so far this year, after announcing layoffs that will impact 1,000 employees according to The Economic Times. The report also noted that many of those affected are contractual staff of on-ground sales teams, from third party staffers like Channelplay and Randstad. Byju's determines employment statuses based on demand and seasonality. This arrives after laying off 1,500 employees back in February, as the most recent move will also aim to further streamline operations.
Nubank, June 7, 2023 announcement. Layoff of 296 people.
Latin America's largest digital bank announced a restructure of its Brazilian operations sector by laying off 296 employees according to The Brazilian Report. Nubank's operations team was divided into independent units focusing on individual products, but will have the ultimate goal of making the digital bank a multi-product platform. “Now with a robust portfolio, and after a deep analysis of models and processes, the need to consolidate the product teams in a centralized organization was identified. With the new model, some functions and positions became redundant.” However, Nubank says it will continue to hire in other areas despite the cuts.
Haven Technologies, June 1, 2023 announcement. Layoff of 280 people, 70% of workforce.
The MassMutual-owned insurance SaaS provider is laying off 280 employees accounting for 70% of its workforce, while Haven's Life insurance business won't be impacted according to Coverager. After a 2021 U.S. introduction, Haven’s software solutions and services allowed insurance carriers to underwrite, service, and administer policies. “Like many organizations in the technology industry, we recently undertook a reorganization effort to ensure Haven Technologies is best positioned to create the flexible and customer-centric technologies that will enable our clients to help expand access to insurance,” a MassMutual spokesperson said in an emailed statement to Coverager.
May 2023 Layoffs
Zendesk, May 31, 2023 announcement. Layoff of 320 people, 8% of workforce.
CEO Tom Eggemeier sent a public email to employees announcing the 8% workforce reduction, which detailed that Zendesk's hiring practices outpaced its business realities from 2020-2022. Macroeconomic conditions have not improved as Zendesk finds itself in an increasingly competitive marketplace. “At the same time, our customers are navigating massive shifts in how they do business, including increased pressure to deliver profitable growth and leveraging fast-advancing technology like generative AI,” Eggemeier wrote in the memo. To best serve its customers, Zendesk will sharpen its focus and wherever possible, direct talent and resources to high priority areas. This includes maturing how the company goes to market and building new products and capabilities that deliver greater value.
ZipRecruiter, May 31, 2023 announcement. Layoff of 270 people, 20% of workforce.
The job posting site announced it will layoff 20% of its workforce, while CEO Ian Siegel will take a 30% salary reduction as the company moves to combat a major slowdown in hiring according to Bloomberg. In an SEC filing on Wednesday, ZipRecruiter said the cuts will be mostly complete by the end of June in response to current market conditions. About half of the layoffs will impact sales and customer support teams. “In response to continuing macroeconomic challenges, we recognize the need to right size our workforce so that we can more efficiently drive our business forward — a decision we do not take lightly,” a spokesperson said in an emailed statement to Bloomberg.
Alibaba Cloud, May 24, 2023 announcement. Layoff of 7% of its workforce.
In an effort to ramp up for an initial public offering, Alibaba announced a 7% workforce layoff today in its cloud computing division according to CNBC. Back in March, the company announced plans to split the company into six business units each with their own chief executive and board of directors. On May 18, Alibaba announced plans to spin-off its cloud computing unit and intends for the division to become an independent publicly listed company within the next 12 months according to CNBC. CEO Daniel Zhang said cuts were “partially due to our proactive move to adjust our revenue structure and focus on high-quality growth, and also a result of external changes in market environment and customer composition.”
Brainly, May 24, 2023 announcement. Layoff of 30% of its workforce.
CEO Michal Borkowski shared a public letter to LinkedIn detailing the layoff of 30% of Brainly's workforce. The company has arrived at a crossroads and needs to take action to optimize its investment, because it won't reach profitability this year without any cost cutting moves. In addition, Brainly is also dealing with an unforgiving economy as many other tech companies make layoff announcements almost daily. “This is ultimately what I am accountable for, so as part of the cost cutting effort, I will be taking a 95% salary cut till the end of this year, while still keeping my full focus on Brainly,” Borkowski wrote in the memo.
Reliance JioMart, May 23, 2023 announcement. Layoff of over 1,000 people.
Reliance Industries' online wholesale sector will layoff 1,000 employees as it aligns its operations with its newest acquisitions, Metro Cash and Carry, according to the Indian Economic Times. The company also asked 500 executives at its corporate office to resign this week, and plans to slash up to 9,900 more roles over the next several weeks according to TechCrunch. After reeling from an aggressive pricing strategy, JioMart is now focusing on improving margins and reducing losses. The company is also planning to close over half of its 150-plus fulfillment centers that supply neighborhood stores.
SoundCloud, May 23, 2023 announcement. Layoff of 8% of its workforce.
In an all-hands meeting, CEO Eliah Seton notified staff members of an 8% reduction of its workforce according to Billboard. The restructure was initiated in hopes to help the company turn a profit, which would be the first time SoundCloud has reached profitability in its history. Employees based in the U.S. will be impacted the most. The audio streaming service will continue to look for more investors according to Seton. “This is a challenging but essential decision to ensure the health of our business and get SoundCloud to profitability this year,” Seton added. The latest reduction comes less than a year after the company conducted a previous round of layoffs that affectedup to 20% of staff in August 2022 according to Billboard.
dbt Labs, May 18, 2023 announcement. Layoff of 15% of its workforce.
CEO Tristan Handy announced a 15% reduction of the company's workforce in a public memo to employees earlier today. “While we’ve seen continued growth, it hasn’t been at the pace we planned. This brings us to a moment that calls for hard decisions. The right call is to reset our expectations for this year,” Handy wrote in the message. The cuts are slated to impact every function of the business, as the company attempts to reset after its COVID hiring spree. “Coming out of Q1 2023, the software market is looking at a longer recovery and we need to continue to adapt,” Handy added.
TuSimple, May 18, 2023 announcement. Layoff of 330 employees, 30% of workforce.
The autonomous trucking company announced it will layoff 30% of its global workforce in an effort to save money and stay in business according to TechCrunch. This is TuSimple's second restructure move within the last five months, as it downsizes from 550 employees to around 220 moving forward. “We believe this is the right number of employees to work toward achieving our goals while preserving the cash on our balance sheet as well as retain strong publicly listed company capabilities,” the company said in an emailed statement.
Cerner, May 16, 2023 announcement. Layoff of 3,000 people, 11% of workforce.
The health IT giant became Oracle's largest acquisition ever when the deal closed in June 2022, but there have been more than 3,000 layoffs as the most recent round took place this month, according to Business Insider. Two former employees told Insider that the company hadn't issued raises or granted promotions, and told employees not to expect any this year. While Oracle declined to comment on Insider's report, it appears that accounting, engineering, legal, marketing, and product teams will be impacted most. According to the report, morale within the Cerner workforce is terrible between cuts, wage freezes, and sales of its buildings by Oracle. The buildings happen to be in Kansas City, MO, where Cerner has historically been a major employer.
There were some interesting moves after the acquisition by Oracle founder, CTO, and chairman Larry Ellison. Dr. David Feinberg was chosen as CEO but left his post in September, while Ellison chose Don Johnson to lead engineering for a combined unit called Oracle Health and AI. Back in January, Johnson abruptly left his post. Data and AI was moved back under Oracle's cloud business after his departure. Insider's report notes the new leader of the unit as Oracle Health General Manager Travis Dalton. Stay tuned.
Zepz, May 16, 2023 announcement. Layoff of 420 people, 26% of workforce.
The London-based money transfer company said it will layoff 420 employees in an exclusive announcement to CNBC. The cuts will impact customer care and engineering teams as Zepz looks to shift those operations from multiple countries to more centralized hubs. Following its combination of Sendwave with WorldRemit under one parent company, Zepz said it was implementing workforce optimization to account for roles that had been duplicated because of the merger. Collectively, both money transfer services are used by more than 11 million users across 150 countries, prior to being acquired by Zepz according to CNBC. “Over the last year we have taken a serious look at how to optimize the organization to continue scaling in a mature fashion that sets up the business for long-term success,” said CEO Mark Lenhard. The company says it is still hiring for 200 positions even with initiating layoffs.
Nuro, May 12, 2023 announcement. Layoff of 340 people, 30% of workforce.
In an effort to extend its capital runway, the autonomous delivery robot startup will lay off 30% of its workforce, accounting for 340 employees according to TechCrunch. Nuro co-founders Dave Ferguson and Jiajun Zhu wrote a public blog post to employees detailing a shifting of resources away from commercial operations towards R&D. This includes pausing plans to ramp up commercial operations in 2023 and delay volume production of itsthe third-generation Nuro bot, which is a delivery robot designed to be the flagship of its commercial strategy. The move allows Nuro to operate twice as long, giving it enough capital to operate another three years without raising more money, according to Ferguson and Zhu.
Cornershop, May 11, 2023 announcement. Layoff of 250 people, 11% of workforce.
The online grocer and subsidiary of Uber Technologies Inc. is eliminating 11% of its workforce, which will affect 250 employees according to Bloomberg. CEO Oskar Hjertonsson announced the cuts in a memo to impacted staff members that are concentrated in Chile. Cornershop primarily operates in Latin America and Canada, as Uber took a majority stake in the company in 2019 in a bid to extend its geographic reach and increase profits. Uber would later acquire the business in 2021 with bigger plans to bundle food delivery with rides. “Unfortunately, this means we had to take a hard look at roles that are no longer needed to achieve our global grocery and retail plan,” said an Uber spokesperson when reached by Bloomberg.
Microsoft, May 10, 2023 announcement. Layoff of 158 people.
The tech giant announced new layoffs beyond its global restructure that was initiated in January according to GeekWire. After cutting 10,000 jobs in January, Microsoft will slash an additional 158 jobs that will impact its Washington state headquarters. More than 2,700 Seattle area workers were affected by the previous announcement, while Microsoft declined to provide details about additional cuts beyond Washington state, or which areas of the company were affected from its latest memo. Economic uncertainty has limited business technology budgets and caused more cautious customer spending for cloud services and software licenses that drive revenue.
Akamai, May 10, 2023 announcement. Layoff of 290 people, 3% of workforce.
CEO Tom Leighton announced the layoffs in a memo to employees, as the internet and cybersecurity company focuses on its highest growth areas and sustaining profitability according to the Boston Globe.
Akamai sent Channel Futures the following statement:
“In order to concentrate our investments and resources in our highest growth areas of security and cloud computing, and to sustain our profitability targets during this challenging macroeconomic environment, Akamai has implemented a reduction of a little less than 3% of its workforce across the globe. We are not providing geographic-nor organization-specific details of the workforce reduction, but can confirm less than 3% of our workforce globally was impacted.”
Paramount Media Networks and Showtime/MTV Entertainment Studios, May 9, 2023 announcement. Layoff of 25% of workforce.
After months of internal dialogue regarding the integration of Showtime's rebranding into Paramount+ With Showtime, Paramount Media Networks has announced layoffs that will impact 25% of its workforce according to Variety. President Chris McCarthy said that MTV News and other units mainly comprised of operations will be shutting down. The pairing of mass streaming success and leading the industry in subscriber growth won't sustain the company through economic uncertainty. “However, despite this success in streaming, we continue to feel pressure from broader economic headwinds like many of our peers. To address this, our senior leaders in coordination with HR have been working together over the past few months to determine the optimal organization for the current and future needs of our business,” McCarthy wrote in his memo to employees.
LinkedIn, May 8, 2023 announcement. Layoff of 716 people, 4% of workforce.
The social media network geared toward connecting business professionals with employment opportunities announced a 4% workforce reduction, which accounts for 716 employees according to Reuters. As demand for jobs wavers, LinkedIn moved to combat the economic uncertainty by also closing its China-focused job application, though it will retain a presence in China to help companies hire and train employees outside the country. With Microsoft as its parent company, LinkedIn follows its lead as many technology companies are laying off employees due to a weakening global economic outlook. Revenue is generated through ad sales and subscriptions to recruiting and sales professionals who use the network to find prospects.
The restructure will affect roles in its sales, operations, and support teams in hopes to streamline the company's operations. This will allow LinkedIn to remove layers that will help make quicker decisions. “With the market and customer demand fluctuating more, and to serve emerging and growth markets more effectively, we are expanding the use of vendors,”CEO Ryan Roslansky wrote in his memo to employees. These vendors will act as external partners who will take on new and existing work. However, Roslansky also said in the letter that the changes would result in creating 250 new jobs.
Intel, May 8, 2023 announcement. Layoff of 20% of workforce.
The chipmaker has dealt with a major decline in revenue over the last six months, citing a weak global economy as its reason behind the latest layoff plan according to The Oregonian. This announcement arrives as Intel seeks billions of dollars in subsidies to help offset building costs of new, advanced factories in Arizona and Ohio. “We are focused on identifying cost reductions and efficiency gains through multiple initiatives, including some business and function specific workforce reductions in areas across the company,” said Intel in a written statement. It will continue to invest in areas that are core to business operations, which includes U.S.-based manufacturing.
According to The Oregonian, Intel is also facing increased competition from rivals including TSMC, AMD, and Nvidia, which continue to erode Intel's market share in various key businesses. However, the company does believe that better results await in the second half of the year. Just last week, Intel told employees that it wants to balance remote and in-office work better, believing face-to-face interactions are key, as it seeks to improve productivity, collaboration and corporate culture.
Intel's restructure plans reportedly include cuts of up to 20% of its workforce, which will impact employees in the client computing and data center divisions according to the Silicon Angle.
Twist Bioscience, May 5, 2023 announcement. Layoff of 270 people, 25% of workforce.
CEO and co-founder Emily M. Leproust, Ph.D., announced the layoffs in a memo to employees detailing decisive and proactive actions aimed at accelerating its path to profitability, while simultaneously extending the company’s runway according to Biospace. The biotechnology company manufactures synthetic DNA and DNA products for customers in various industries, and the restructure will equal a 25% workforce reduction when completed. Focusing resources on the support of key commercial and development opportunities that have the potential to deliver significant return on investment will guide its decisions moving forward. “Following a strategic and holistic analysis of the business, we prioritized and reengineered our cost base, and with these substantive changes, we believe we are operating from a position of strength, operating as a leaner organization focused on disruptive market opportunities for profitable and scalable growth,” Dr. Leproust wrote in the memo.
Shopify, May 4, 2023 announcement. Layoff of 2,300 people, 20% of workforce.
Despite posting a surprise first quarter profit today, the Canadian e-commerce company announced layoffs accounting for 20% of its workforce according to Reuters. This is the second round of mass job cuts at Shopify in the past year. These developments also pushed Shopify to sell the logistics arm it built over the past few years to freight forwarder Flexport in an all-stock deal. The move signals a major reversal of its strategy of aggressively investing in fulfillment networks, as Shopify had built out its order fulfillment network expecting a pandemic boom in demand to continue.
However, like many of its rivals, the company must pivot to reduce operating costs. Gil Luria, analyst at D.A. Davidson & Co. said,“They can have the best of both worlds – a logistics business that makes them competitive with Amazon without having to manage a business that is not core to Shopify and had been losing money,” in a comment to Reuters.
Sabre, May 4, 2023 announcement. Layoff of 1,100 people, 15% of workforce.
CEO Kurt Ekert has had his hands full since being chosen to lead Sabre in March. The first earnings call in his new role came with a big announcement detailing a 15% workforce reduction at Sabre in hopes to save $200M annually, according to Skift. Sabre specializes in providing operational software and distribution services to travel agencies, airlines, and hotels. “I do not take this decision lightly, especially given the immense respect that I have for all of my Sabre colleagues around the world. However, I am confident that these actions will better position us for the future and put us on a direct path to achieving our financial and strategic targets,” Ekert wrote in the memo to employees.
Streamlining the layers of Sabre's management and employment base, increasing operational efficiencies, and evaluating its real estate footprint are the current focus points at the company. Ekert also expressed prioritizing investment in its strategic growth initiatives, including a continued focus on tech investments, and plans to grow into other market segments and geographies.
Unity, May 3, 2023 announcement. Layoff of 600 people, 8% of workforce.
The software company announced its third and largest reduction within the past year, as recession fears continue to cause cost reduction moves amongst tech companies according to The Wall Street Journal. This announcement comes after Unity laid off 500 employees in January and June of last year in response to economic trends. Unity will also reduce its global network of offices to less than 30, as opposed to its current allotment of 58. The layoffs will impact middle managers, as Unity moves to place more employees under the supervision of fewer managers to flatten its hierarchy.
CEOJohn Riccitiellosaid the goal is to streamline operations and improve the company’s top and bottom lines. “It’s all about setting ourselves up for higher growth and it was clear we had too many layers,” he said. While there isn't a formal policy on where employees have to work, Unity said it would adopt a hybrid work model in which employees will be expected to report to an office at least three days a week starting in September.
Upwork, May 3, 2023 announcement. Layoff of 137 people, 15% of workforce.
CEO Hayden Brown shared an email with employees announcing the cuts that accounted for 15% of their full-time workers on Wednesday. Economic uncertainty along with the future of work lead Upwork to restructure its organization, as many hybrid workforce (independent team member) roles were completely eliminated. The majority of the layoffs impacted the enterprise team to streamline operations and drive efficiency in other areas of the business. “Working as a high-performing and efficient team has always been important to us, and as this year has unfolded, we have been proactive in adapting our plans across hiring, vendor spend and brand media budget—which we are reducing by 94% for the second half of this year—in response to the realities our business is facing,” Brown wrote in the memo.
Eric Gilpin, Chief Sales Officer and current GM, Enterprise, is stepping down as of today's announcement. “He will stay on in an advisory role to me and our team through the end of the quarter. We'll launch a search for a general manager for our Enterprise business unit and the team will report to me in the interim,” Brown added.
IBM, May 1, 2023 announcement. Hiring freeze that could replace over 7,800 jobs with AI.
CEO Arvind Krishna told Bloomberg News about the hiring freeze on Monday. 30% of non-customer facing roles could be replaced by AI and automations in five years, while hiring for back-office functions such as human resources will be suspended or slowed according to Krishna. The restructure could include not replacing roles vacated by attrition.
April 2023 Layoffs
Cue Health, April 28, 2023 announcement. Layoff of 326 people, 30% of workforce.
The San Diego based test maker that sold COVID-19 kits to the NBA and Google, announced layoffs in hopes to reduce operating costs according to The San Diego Union-Tribune. After sharing the cuts in an SEC filing, Cue Health initiated its third round of cuts within the past year. CEO Ayub Khattak noted that the company has been making progress creating products beyond its COVID-19 test, though revenue generation has yet to build. “Therefore, we remain in an in-between period at Cue: between the launch of our COVID-19 product and the rollout of our expanded test menu and integrated care platform,” Khattak wrote in his memo to employees.
Dropbox, April 27, 2023 announcement. Layoff of 500 people, 16% of workforce.
CEO Drew Houston wrote a blog post to Dropbox employees detailing the layoffs today. “First, while our business is profitable, our growth has been slowing. Second, and more consequentially, the AI era of computing has finally arrived,” Houston noted. He alluded to Dropbox having a longstanding interest in AI that is finally being realized in the present. The software company will streamline its organizational structure, by consolidating teams and aligning function and strategy. Sustainable financial growth, efficiency, and flexibility to invest in its future are the focus points after announcing the cuts. “These transitions are never easy, but I'm determined to ensure that Dropbox is at the forefront of the AI era, just as we were at the forefront of the shift to mobile and the cloud,” Houston added.
Alteryx, April 27, 2023 announcement. Layoff of 320 people, 11% of workforce.
The big-data company and ETL provider announced layoffs that will impact sales, marketing, and general administrative teams according to SiliconANGLE. The 11% reduction of staff will allow Alteryx to reduce operating costs, improve operating margins and help it to achieve profitability faster than ever. “Our key strategic go-to-market initiatives and our rapid platform innovation are effectively enabling the business to demonstrate strong resilience in an increasingly dynamic macro backdrop,” CEO Mark Anderson wrote in a memo to employees.
Clubhouse, April 27, 2023 announcement. Layoff of 50% of workforce.
Co-founders Paul Davison and Rohan Seth announced the layoffs in public email to its employees, detailing that 50% of its workforce will be let go as we move further away from the COVID pandemic. “But as the world has opened up post-COVID, it's become harder for many people to find their friends on Clubhouse and to fit long conversations into their daily lives. To find its role in the world, the product needs to evolve,” Davison wrote in the memo. A company reset is needed to fix the issue, which includes eliminating roles to create a leaner, product-focused team.
Extramarks, April 26, 2023 announcement. Layoff of 300 people.
The educational technology platform will be laying off 300 employees in a restructuring move according to Inc42. Most of the impacted employees are from the B2C vertical department, which includes sales, customer support, human resources, marketing, tech, and content teams. As the world continues to reopen post-pandemic, offline learning is trending in popularity, while companies like Extramarks begin to trend the opposite way.
Skill Lync, April 25, 2023 announcement. Layoff of 400 people.
The Chennai based startup specializing in upskilling will layoff 400 employees. Skill-Lync provides employment opportunities to students who successfully complete its program. An uncertain economic future prompted co-founder SuryaNarayanan PaneerSelvam to initiate and announce the cuts today. Impacted employees are from sales, marketing, pre-sales, tech and talent acquisition teams.“We’ve decided to consolidate our operations across Chennai, Bengaluru and Hyderabad, with only corporate-facing teams operating from Pune/Delhi which further led to some headcount reduction. We’ve also reduced the hierarchy in our organisation for more agile decision making and accountability,” PaneerSelvam wrote in the memo.
RapidAPI, April 25, 2023 announcement. Layoff of at least 115 people, 50% of workforce.
The startup known for building out an API marketplace will be laying off half of its staff according to Tech Crunch. After being appointed last week, CEO Mark Friend notified employees of the cuts via email saying: “We have grown large as an organization and often sacrificed agility. Moving forward, we will be disciplined on our product focus and ruthless about customer success.” Employees working on teams in sales, talent acquisition, engineering, and product and marketing across Europe, Tel Aviv, and San Francisco will be immediately impacted.
Flink, April 24, 2023 announcement. Layoff of 8,000 people, 40% of workforce.
The Berlin based food delivery service will be laying off 40% of its workforce to combat difficult market conditions and an uncertain economic future, according to Manager Magazin. Layoffs will affect every department of Flink except the tech team, which has ironically seen an increase in hires. Flink will not be expanding to other countries at this time and is currently looking for a investors to raise capital.
Red Hat, April 24, 2023 announcement. Layoff of 760 people, 4% of workforce.
CEO Matt Hicks sent an mail to employees earlier today announcing the layoffs, which was a decision he and the leadership team hoped to avoid. According to News Observer, the cuts at the software company will impact general and administrative positions, while customer sales and product buildout teams will remain in tact. “This decision is now appropriate to ensure Red Hat's ability to compete in a new environment,” Hicks wrote in the email. With a storied 30-year history, Red Hat is considered to be the global leader in providing open-source software services. That reputation has only grown stronger after being acquired by IBM in 2019.
Lyft, April 21, 2023 announcement. Layoff of at least 1,072 people, 26% of workforce.
The ride sharing company echoes long term health concerns of every other company on this list by declaring its move to reduce operational costs. CEO David Risher announced the layoffs in a note to employees, saying he wants to do more to meet the needs of riders and drivers. “And we need to bring our costs down to deliver affordable rides, compelling earnings for drivers, and profitable growth,” Risher wrote.
Lyft considers its drivers to be contractors, not employees. The restructure could impact 1,200 employees or more, which accounts for at least 30% of its workforce according to The Wall Street Journal. “With these changes, we have the opportunity to become the customer-focused, large-scale, profitable business we should be,” Risher said in the memo. The newly appointed CEO will officially notify impacted employees next Thursday, April 27.
BuzzFeed, April 21, 2023 announcement. Layoff of 180 people, 15% of workforce.
Because of an inability to make a profit, CEO Jonah Peretti sent a memo to employees announcing the layoffs across BuzzFeed News and other divisions according to Variety. “While layoffs are occuring across nearly every division, we've determined that the company can no longer continue to fund BuzzFeed News as a standalone organization,” Peretti noted. According to Peretti, BuzzFeed's priority is to now funnel its news efforts into a single profitable news organization, HuffPost, which was acquired from Verizon in 2020. The company's flagship BuzzFeed.com website lives on.
Insider, April 20, 2023 announcement. Layoff of 10% of workforce.
The online media giant will be laying off 10% of its staff according to a public memo shared by president Barbara Peng, according to reporting from Yahoo. “The economic headwinds that have hurt many of our clients and partners are also affecting us. Unfortunately, to keep our company healthy and competitive, we need to reduce the size of our team,” Peng noted in the memo. In audio obtained by The Daily Beast, CEO Henry Blodget told staffers in a call Thursday morning that the cuts were a result of a significant decline in advertising dollars and people spending less time consuming news.
Lenovo, April 20, 2023 announcement. Layoff of at least 5% of workforce.
In an effort to save upwards of $115m and trim operational costs, Lenovo has initiated layoffs in response to the severe decline in PC and smartphone revenue according to Channel Web. Paired with Lenovo's hopes of doubling its net margin in the next few years, the company has also moved to invest in high-margin growth engines. However, CEO Yuanqing Yang expects the market to stabilize later this year, but time will tell if that prediction comes true. According to Nikkei Asia reports, the total is at least 5% of Lenovo's workforce.
F5, April 19, 2023 announcement. Layoff of 623 people, 9% of workforce.
The cloud and security services firm announced that it will be laying off 623 people, which accounts for 9% of its workforce. F5 will also be cutting the bonuses of senior executives, as well as reducing spending on office space and executive travel to help trim operational costs immediately. “It's clear that rising interest rates, geopolitical events, and macroeconomic uncertainty have dramatically affected our customers' spending patterns... we must take measures to decrease our costs without jeopardizing our future growth trajectory,” CEO François Locoh-Donou said in an email to staff obtained by Reuters.
Opendoor, April 18, 2023 announcement. Layoff of 560 people, 22% of workforce.
Opendoor announced a massive, 22% staff reduction accounting for 560 employees that will mainly impact the operations unit. The online real estate firm that uses AI to buy, price, and sell homes had already laid off 18% (550 total) of its workforce in November of last year. A declining house market has been the biggest factor in Opendoor's decision, with listings falling 30% from their 2022 apex partly due to higher mortgage interest rates. “We're taking actions now to better align our operational costs with the anticipated near-term market opportunity,” the company said in an email to Reuters confirming the layoffs.
Snyk, April 14, 2023 announcement. Layoff of 128 people.
CEO Peter McKay notified employees of the restructure in a public blog post, noting that GTM and Corporate Functions teams would be impacted immediately. According to McKay, these changes allow Snyk to right-size its GTM organization to further focus on customer success in the enterprise sector, prioritize solidifying its AppSec leadership, and simplify organizational layers to get closer to customers and improve its overall speed, agility and communication.
“Together, we took concepts like Shift Left and DevSecOps and turned them into reality for our early customers. But as the developer security market has matured, our customer base has evolved from early adopters to the early majority, including some of the world’s largest, most complex organizations. These global brands are counting on our team to deliver on our developer security vision, which we know is so much more than a simple product purchase -- it’s a cultural revolution. Simply put, they need more help from us,” McKay said in the blog post.
Accenture, April 14, 2023 announcement. Layoff of 19,000 people, 2.5% of workforce.
The professional services company said that more than half of the 19,000 employees being laid off are back-office staff. A gloomy economic outlook caused Accenture to streamline its operations and transform non-billable corporate functions to reduce costs, but their latest quarterly report to the Securities and Exchange Commission said hires will continue, according to reporting from CNN.
Milkrun, April 11, 2023 announcement. Layoff of 400 people, 100% of workforce.
Co-founder Danny Milham announced the closing of Milkrun and a trading shutdown as of April 14, in a memo to employees. Back in February, the Australian grocery delivery startup made 20% of its staff redundant to consolidate delivery hubs, according to Forbes AU. The pandemic, plus constant and instant demand helped enhance the niche lane for e-shopping, as billions were poured into warehouses enabling fast delivery. However, as the world trended away from the pandemic, demand for such services slowed drastically.
1K Kirana, April 4, 2023 announcement. Layoff of 600 people, 40% of workforce.
Co-founder Kumar Sangeetesh confirmed today that tech startup 1K Kirana Bazaar has laid off about 600 employees. “We are currently in the process of restructuring as our growth forecasts have changed. We are changing our focus areas and moving out of a few geographies,” Sangeetesh said in a statement to Moneycontrolaccording to its reporting. 1K Kirana struggled to raise fresh funding due to investors' increased focus on profitability and financial metrics, leading to this situation. The cuts will impact the on-ground operations, warehouse, delivery, network operations, growth, and tech teams, according to Moneycontrol.
Hyland Software, April 3, 2023 announcement. Layoff of 1,000 people, 20% of workforce.
CEO Bill Priemer announced the layoffs in a letter shared on Hyland's website, noting that the cuts would impact 1,000 employees globally, which accounts for 20% of its workforce. “We are removing layers of management, adjusting team sizes and reassigning responsibilities across departments and levels,” Priemer said. Founded in 1991 as a software development company, Hyland has been transforming into a cloud company, and doing so has required a substantial amount of spending on new systems and on its workforce.
March 2023 Layoffs
CoverMyMeds, March 29, 2023 announcement. Layoff of 800 people.
CoverMyMeds, the Columbus-based health tech firm known for developing a platform that transmits prior authorization requests between pharmacies, medical providers and health plans, announced layoffs to its staff this morning totaling 815 employees. President Kevin Kettler's email said the company will also be leasing out space in its new Franklinton headquarters, along with closing its patient support center located in Scottsdale, Arizona, according to a report from The Columbus Dispatch.
Electronic Arts, March 29, 2023 announcement. Layoff of 780 people, 6% of workforce.
In a memo to employees, the creators of beloved videogame franchises like “Madden NFL” and “The Sims” said it is laying off about 6% of its workforce and reducing its office-space footprint to focus its spending on the best growth opportunities in the gaming industry, according to reporting from The Wall Street Journal. “Now, more than ever, we must be focused on our strategic priorities. These priorities align our investments with opportunities to make the biggest impact,” CEOAndrew Wilsonsaid in his blog post to employees. The announcement makes EA the first major videogame publisher to disclose significant layoffs.
Lucid Motors, March 28, 2023 announcement. Layoff of 1,300 people, 18% of workforce.
CEO and CTO Peter Rawlinson said in an email to employees that the restructuring is the result of Lucid's evolving business needs and productivity improvements according to Tech Crunch. Rawlinson noted that while the company has reduced costs, it was not enough to avoid layoffs that align with a cost-reduction announcement made in late February.
Disney - Metaverse Division, March 28, 2023 announcement. Layoff of 50 people.
The smaller, 50 person unit focused on creating metaverse strategies and a new form of storytelling was terminated as a result of the overall layoff plan outlined on Monday by CEO Bob Iger. Former consumer-products executive Mike White led the division tasked with utilizing next-gen technological formats, while using Disney’s extensive library of intellectual property to tell new stories, according to reports from the Wall Street Journal.
Disney, March 27, 2023 announcement. Layoff of 7,000 people, 3.2% of global workforce.
In hopes to regenerate finances and reach profitability within its streaming business, Disney CEO Bob Iger announced plans to lay off 7,000 employees today. The streaming race paired with the need for constant content creation has limited Disney's ability to produce new shows, but the cuts will allow for reimagined spending efforts moving forward. Units formerly known as Disney General Entertainment and Disney Media and Entertainment Distribution, as well as corporate positions and jobs in the theme parks, along with experiences and consumer products business, will be impacted immediately.
Reported by the LA Times, general entertainment refers to Disney shows and movies that don’t clearly fall into any of the companies’ most popular brands, such as Marvel, Star Wars and Pixar. Disney’s general entertainment unit has typically provided shows to ABC and Hulu. Additionally, Iger has been noncommittal about whether Disney will buy the 33% of Hulu it doesn’t already own from Comcast.
Iger noted that employees impacted from today's memo will be notified by Disney this week, with a second, larger restructure due in April with several thousand more staff reductions, followed by a final group before the beginning of summer. In what seems to be a bleak outlook, Iger closes saying, “for our employees who aren't impacted, I want to acknowledge that there will be no doubt be challenges ahead as we continue building the structures and functions that will enable us to be successful moving forward.”
Indeed, March 22, 2023 announcement. Layoff of 2,200 people, 15% of workforce.
With future job openings at or below pre-pandemic levels, Indeed has acknowledged that it is simply too big for what lies ahead. CEO Chris Hyams announced the layoffs in a blog post today saying, “the cuts come from nearly every team, function, level and region at Indeed and Indeed Flex.” Ironically, the global employment company is focused on preparing for the future to align strategy and priorities, while reducing duplication of effort and inefficiency. “I will be taking a 25% cut in base pay. Additionally, more than 75% of my total compensation is directly tied to Indeed revenue growth, and is at risk given current trends. We will be instituting additional cost saving measures moving forward, which I will outline tomorrow,” Hyams noted.
According to details shared by Indeed after its last Quarterly Update meeting, it is clear the job market will continue to cool after the recent post-COVID boom. “It is becoming increasingly likely that HR Tech revenue will decline in FY2023 and potentially again in FY2024. Last quarter, US total job openings were down 3.5% year over year, while sponsored job volumes were down 33%. In the US, we are expecting job openings will likely decrease to pre-pandemic levels of about 7.5 million, or even lower over the next two to three years,” said Hyams in his note to employees.
Just Eat, March 21, 2023 announcement. Layoff of 1,700 people.
In February, Just Eat announced that UK orders fell 10% and the firm alarmed investors by failing to offer a sales forecast for 2023. According to reports from Yahoo, global orders dropped 9% in 2022, Just Eat said, while revenues increased 4% to 5.6 billion euros (£4.9 billion). CEO Jitse Groen said most of the increased sales related to higher prices charged by restaurants. However, gross transaction value (GTV), a measure of the size of orders, stayed flat. Efficiency and simplicity will be the new focus moving forward.
Twitch, March 20, 2023 announcement. Resignation of former CEO and co-founder Emmett Shear - Layoff of over 400 people, 20% of workforce.
On Thursday, March 16, CEO and co-founder Emmett Shear announced his decision to step down from his position to spend more time with his growing family. The 16 year run was full of highs and lows, marred by controversies with its creators and viewers along with having its talent consistently poached by YouTube. Following Shear's exit was the announcement that 20% of Twitch's workforce is being laid off by new and current CEO Dan Clancy.
With Amazon being Twitch's parent company, the pending restructure was easily predictable. In what has become a familiar tune, Clancy points to the general economic climate trending downward stating, “Like many companies our business has been impacted by the current macroeconomic environment, and user and revenue growth has not kept pace with our expectations. In order to run our business sustainably, we’ve made the very difficult decision to shrink the size of our workforce.”
Amazon, March 20, 2023 announcement. Layoff of 9,000 people.
Amazon's earlier round of layoffs began in November 2022 and trickled into January of this year, with 18,000 employees being notified of the restructure. Those impacted were devices, human resources, recruiting and retail departments. Today, CEO Andy Jassy shared a memo to employees announcing 9,000 additional layoffs that will come to fruition over the next few weeks. This round of cuts will primarily impact Amazon’s advertising, cloud computing, human resources, and Twitch livestreaming businesses. According to CNBC, “Amazon is undergoing the largest layoffs in company history after it went on a hiring spree during the COVID-19 pandemic. The company’s global workforce swelled to more than 1.6 million by the end of 2021, up from 798,000 in the fourth quarter of 2019.”
Meta, March 14, 2023 announcement. Layoff of 10,000 people, 13% of workforce.
Meta's CEO and founder Mark Zuckerberg announced that it will layoff about 13% of its workforce in the latest restructure move he's calling a “year of efficiency.” This follows November's 13% job reduction at the company that has been reeling from over-acquiring and hiring within the industry. Meta also plans to close almost 5,000 job postings that have yet to be filled, detailed by Zuckerberg in the memo. The layoffs will affect its recruiting team this week, with a restructuring of its tech and business groups to come in April and May. According to the New York Times, “Meta is dealing with many challenges these days. It is grappling not only with a digital advertising slowdown but also with Apple’s privacy changes to its mobile operating system, which have restricted Meta’s ability to collect data on iPhone users to help target ads.”
GoTo Group, March 10, 2023 announcement. Layoff of 600 people.
Indonesia's biggest tech firm PT Goto Gojek Tokopedia announced another round of layoffs aimed at streamlining the organization and boosting the company's profitability according to Reuters. Becoming more “agile” and maintaining growth amid challenging global economic conditions are the major focus moving forward.
Xero, March 9, 2023 announcement. Layoff of 800 people, 15% of workforce.
CEO Sukhinder Singh Cassidy's memo to employees said the cuts were part of a plan to stream line Xero's operations, realign the business and provide a better balance of growth and profitability according to Stuff. The impact of the restructure will be felt most by production, marketing, strategy and talent teams.
Atlassian, March 6, 2023 announcement. Layoff of 500 people, 5% of workforce.
According to a blog post written by Atlassian's co-founders and co-CEOs Scott Farquhar and Mike Cannon-Brookes, the cuts signal a greater focus on key priorities such as IT service management and helping customers move workloads from on-premises data centers to the cloud, and thus has less to do with finances compared to competitors. Layoffs won't be evenly distributed across the company, with the most impacted teams including Talent Acquisition, Program Management, and Research & Insights.
SiriusXM, March 6, 2023 announcement. Layoff of 475 people, 8% of workforce.
Every department at SiriusXM will be impacted from the layoffs announced by CEO Jennifer Witz according to Variety. The move comes in an effort to sustain company profitability. “We are entering into a new phase for our company. The investments we are making in the business this year, coupled with today’s uncertain economic environment, require us to think differently about how our organization is structured,” Witz said in the layoff memo to employees.
Thoughtworks, March 1, 2023 announcement. Layoff of 500 people, 4% of workforce.
The software consultancy firm laid off 500 employees this week. “We confirm that we have made the difficult decision to reduce our workforce by about four percent globally,” Thoughtworks global public relations head Linda Horiuchi said in a statement emailed to TechCrunch.
February 2023 Layoffs
Twitter, Feb. 25, 2023 announcement. Layoff of 200 people, 10% of workforce.
Twitter laid off 200 employees, with many discovering that they were logged out of their corporate email accounts and laptops — the first hint that layoffs had begun, according to the New York Times. Those impacted are product managers, data scientists and engineers specializing in machine learning and site reliability, enabling Twitter’s various features online. After acquiring the social media platform in October, Elon Musk has steadily trimmed its work force from about 7,500 employees as he has sought to reduce costs.
Ericsson, Feb. 24, 2023 announcement. Layoff of 8,500 people, 8% of workforce.
In a memo to employees, the Swedish company will layoff 8,500 employees globally as part of its plan to cut costs, as reported by Reuters. “The way headcount reductions will be managed will differ depending on local country practice,” said a company spokesperson in Friday's statement. Ericsson said it expects to start seeing the effect of its cost savings in the second quarter of this year.
Ericsson, Feb. 20, 2023 announcement. Layoff of 1,400 people.
Telecoms gear maker Ericsson will slash 1,400 jobs in Sweden to prioritize global cost reductions, announced on Monday, according to Reuters. This news follows a December announcement to trim costs by 9 billion crowns ($880 million) by the end of 2023 as demand slows in some markets, including North America. Sources close to the matter told Reuters that further job cuts are expected in other countries that will impact thousands.
DocuSign, Feb. 16, 2023 announcement. Layoff of 680 people, 10% of workforce.
The e-signature software company recently downsized their workforce in September by 9%, followed by an additional cut of 10% announced today. The restructuring plan arrives with the hope to support growth, scale, and profitability objectives, which will heavily impact DocuSign's worldwide field organization. “This action allows us to reshape the company to more effectively position us for profitable growth, while freeing up resources for investments,” a DocuSign spokesperson told CNBC.
Twilio, Feb. 13, 2023 announcement. Layoff of 1,500 people, 17% of workforce.
After already laying off 11% of their workforce in September, Twilio CEO Jeff Lawson announced today that even more layoffs were coming. “As we’ve refined our strategy over the past several months, it's become apparent we need significant structural changes to better execute our strategy. This is because the two parts of our business – communications and software – are at different lifecycle stages and have different operating needs,” Lawson said in a company blog post.
Yahoo, Feb. 9, 2023 announcement. Layoff of 1,600 people, 20% of workforce.
The days of Yahoo jockeying for digital advertising dominance with Google and Meta are coming to an end. The announcement was reported by Axios after speaking with executives, which detailed plans to lay off more than 20% of its total workforce. With a major restructuring of its ad tech unit ahead, CEO Jim Lanzone stressed that the layoffs are not attributable to financial challenges, but rather, strategic changes to the company's Yahoo for Business advertising unit, which is not profitable, according to Axios.
Affirm, Feb. 8, 2023 announcement. Layoff of 500 people, 19% of workforce.
CEO and founder Max Levchin wrote, “The root cause of where we are today is that I acted too slowly as these macroeconomic changes unfolded,” in a now-public message to employees, according to CNBC. The bombshell dropped as it reported second-quarter earnings that fell below analyst estimates on both the top and bottom lines.
Zoom, Feb. 7, 2023 announcement. Layoff of 1,300 people, 15% of workforce.
Zoom's CEO and founder Eric Yuan shared a memo to staff saying, “Each organization across Zoom will be impacted by these changes.” According to the release, Zoom's leadership carefully examined and made decisions based on critical priorities for long-term growth, and also looked for functions that have become overly complex or duplicative. To further display accountability, Yuan will also decrease his salary for the coming fiscal year by 98% and forego his FY23 corporate bonus. “Members of my executive leadership team will reduce their base salaries by 20% for the coming fiscal year while also forfeiting their FY23 corporate bonuses,” he said.
Dell, Feb. 6, 2023 announcement. Layoff of 6,650 people, 5% of workforce.
Dell's PC boom during the pandemic-era has slowly come to an end, with various hardware makers experiencing major drops in demand. Among major companies, Dell saw the largest decline -- 37% compared with the same period in 2021, according to IDC. The erosion of market conditions has helped create an uncertain future globally, according to a blog post from Co-COO Jeff Clarke. “The steps we’ve taken to stay ahead of downturn impacts -- which enabled several strong quarters in a row -- are no longer enough. We now have to make additional decisions to prepare for the road ahead,” said Clarke.
Byju's, Feb. 2, 2023 announcement. Layoff of 1,500 people.
After placing hundreds of employees on personal improvement plans (PIP), multinational edtech company Byju's cited poor employee performance as reasoning behind its latest round of layoffs. Engineering and product teams will be impacted most, according to LinkedIn posts from now former employees.
January 2023 Layoffs
PayPal, Jan. 31, 2023 announcement. Layoff of 2,000 people, 7% of workforce.
PayPal is in the process of “right sizing” its cost structure and made additional steps to bring that into fruition, according to a release posted to the company's website. “We have more work to do. We must continue to change as our world, our customers, and our competitive landscape evolve.”
NetApp, Jan. 31, 2023 announcement. Layoff of 960 people, 8% of workforce.
CEO George Kurian's memo to staff said “companies are facing an increasingly challenging macroeconomic environment, which is driving more conservatism in IT spending. We are not immune to these challenges.”
Workday, Jan. 31, 2023 announcement. Layoff of 525 people.
Workday Co-CEOs Aneel Bhusri and Carl Eschenbach sent an email to employees, which was also posted publicly, detailing a realignment of resources to focus their business in FY24. The company dismissed theories of over hiring, assuring employees that their global workforce will increase in 2024. However, product and technology teams will be affected immediately.
OLX Group, Jan. 31, 2023 announcement. Layoff of 1,500 people, 15% of workforce.
The OLX Group's dwindling demand for its services has caused the company to downsize their global workforce. Engineering and operations teams will be impacted the most, while cost structure and future ambitions are reimagined. A company spokesperson publicly confirmed the move stating, “OLX is taking the necessary measures to reduce its cost structure in light of changing macroeconomic conditions.”
SAP, Jan. 26, 2023 announcement. Layoff of 3,000 people.
According to SAP's CFO Luka Mucic, “the company expects about 300 to 350 million euros [$327-$382 million] in run rate savings.” The restructuring announcement detailed goals of a streamlined portfolio and increased investments in high-impact areas for the company. SAP will also attempt to recoup its stake in American business software provider Qualtrics, after making the initial $8 billion investment back in 2018.
IBM, Jan. 25, 2023 announcement. Layoff of 3,900 people.
IBM's workforce reduction comes with a silver lining attached for some current employees. “IBM still expects to hire in the higher growth areas. The effect of currency fluctuations should be neutral overall in 2023,” according to CFO James Kavanaugh in an interview with Bloomberg. Kavanaugh told Reuters the company was still committed to hiring for client-facing research and development. The layoffs came despite IBM also reporting its highest annual growth in a decade, powered by its fast-growing cloud market.
Google, Jan. 20, 2023 announcement. Layoff of 12,000 people.
Google and Alphabet’s CEO Sundar Pichai sent an email to employees, which was also posted publicly. He said, “Over the past two years we’ve seen periods of dramatic growth. To match and fuel that growth, we hired for a different economic reality than the one we face today.” Pichai said the job cuts are across product areas, functions, levels, and regions.
Capital One, Jan. 19, 2023 announcement. Layoff of 1,100 people.
Capital One is eliminating its “agile delivery of technology” department, thus shifting this workload to engineers and product managers that will be expected to use these routines. “This announcement is not a reflection on these individuals or the work they have driven on behalf of our technology organization. Their contributions have been critical to maturing our software-delivery model and our overall tech transformation,” Capital One said in its message to employees obtained by Bloomberg.
Microsoft, Jan. 18, 2023 announcement. Eliminating 10,000 jobs, less than 5% of workforce.
A public post shared CEO Satya Nadella’s note to Microsoft employees, which said that the company will reduce its overall workforce by 10,000 through the end of the fiscal year 2023 third quarter. Nadella said that while Microsoft will eliminate jobs in some areas, the company will continue to hire in key strategic areas. Nadella said the changes were driven as customers are shifting spending. During the pandemic they accelerated digital spending. Now, “we’re seeing them optimize their digital spend to do more with less.” Nadella also mentioned the potential for recession.
Cloud Software Group, Jan. 11, 2023 announcement. Layoff of 15% of workforce.
Cloud Software Group was the company formed when private equity owners merged Citrix and Tibco, two enterprise giants. In a public post, CEO Tom Krause said the company had undergone a rigorous review and planning process that identified redundancies in the workforce.
Coinbase, Jan. 10, 2023 announcement. Layoff of 950 people.
Coinbase CEO Brian Armstrong announced the layoffs in a letter to employees on Jan. 10, 2023, saying the layoff of 950 people was part of an initiative to reduce the company’s operating expenses by 25% quarter to quarter. The company had already cut 18% of jobs in June 2022. Armstrong said the changes to improve operational efficiency will help it weather downturns in the crypto market and capture opportunities that may emerge.
Informatica, Jan. 10, 2023 announcement. Layoff of 450 people, 7% of workforce.
The company made the news public in an 8-K filing with the SEC. Informatica said that this plan is intended to better align the company’s global workforce and cost base with its cloud-focused strategic priorities. In addition, the company’s CFO Eric Brown left and a new CFO, Michael McLaughlin, was appointed.
Salesforce, Jan. 4, 2023 announcement. Layoff of 7,900 people, 10% of workforce.
Salesforce CEO Marc Benioff said in a letter to employees on January 4 that the current environment is challenging and customers are “taking a more measured approach to their purchasing decisions.” Benioff said that as revenue accelerated during the pandemic, Salesforce hired too many people and now the company is facing an economic downturn. Therefore the company will reduce its workforce by 10%.
Amazon, November 2022 and Jan. 4, 2023 announcements. Layoff of over 18,000 people.
Amazon CEO Andy Jassy first shared plans about coming layoffs in the company’s blog in November 2022 targeting the organization’s devices and books divisions, and then updated that on Jan. 4, 2023. In the January blog post he said that Amazon would eliminate just over 18,000 roles, the highest number in the company’s history, with the majority of those cut being in Amazon Stores and PXT Solutions (People, Experience, and Technology, essentially HR). Ironically, the PTX team had posted a recruitment video for the team just nine months ago. The layoffs are scheduled to happen the week of January 18, but Jassy announced them early due to leaks. Amazon had 1.61 million employees in 2021.
Vimeo, Jan. 4, 2023 announcement. Layoff of 11% of workfoce.
Vimeo CEO Anjali Sud announced the move in a note to employees. This 11% reduction follows an earlier 16% reduction in July 2022. Most of those impacted are in sales and R&D because those departments make up most of the workforce. Sud cited a deterioration in economic conditions, geopolitical conflict, rising interest rates, and global recession fears. She said the executive team would focus on two business priorities going forward -- reaccelerating self-serve and doubling down on Vimeo Enterprise.
2022 Tech Layoffs
DoorDash, November 2022 announcement. Layoff of 1,250 people, 6% of workforce.
In his memo to employees, CEO Tony Xu said that the company sped up hiring during the pandemic to meet the opportunity as so many homebound people started ordering to have their restaurant meals delivered. But growth has tapered, he said, compared to the pandemic growth rates, and the company needed to get its operating expenses in line with its revenue.
Meta, November 2022 announcement. Total layoff of 11,000 people.
Facebook parent Meta announced it would lay off 13% of its workforce, or 11,000 employees. In addition, the company said it would cut discretionary spending and extend its hiring freeze through Q1 2023. CEO Mark Zuckerberg said in a letter to employees that the pandemic drove people online and e-commerce surged -- a trend that he thought would continue, so he invested more. However, e-commerce returned to prior levels. He also cited a macroeconomic downturn, increased competition, and ads signal loss as contributing to much lower revenue.
Twitter, November 2022 and ongoing. Layoff of over 5,000 people.
Elon Musk completed his $44 billion purchase of Twitter on October 27 and immediately fired top executives. Days later mass layoffs began and have continued ever since.
UiPath, November 2022. Layoff of 241 people, 6% of workforce.
The company mentioned this workforce reduction in an SEC filing under the heading “Costs Associated with Exit or Disposal Activities.” The filing stated that the cuts support the company’s positioning to increase execution velocity, operational efficiency, and customer centricity.
iFit, November 2022. Layoff of 300 people, 20% of workforce.
Fueled by the at-home fitness boom, iFit hired during the pandemic and reached a high of more than 2,500 employees. The company makes exercise equipment and exercise content for the home market. But demand fell off after the peak of the pandemic. These new cuts take those employee numbers down to a sobering 1,300.
Peloton, October 2022. Layoff of 500 people, 12% of workforce.
These most recent cuts in October came after several other rounds of layoffs (including one in February 2022 of 20% or 2,800 employees) at the online fitness equipment and content company. The company saw huge growth during the pandemic as more people wanted to work out at home. But demand has dropped as some aspects of life, such as gym attendance, have gotten close to pre-pandemic norms again.
DataRobot, August 2022. Layoff of 260 people, 26% of workforce.
CEO Debanjan Saha said in a blog post announcing the company restructuring that “the market now looks different than it did in 2021 as global IPO activity hit an all-time high, when DataRobot pursued an aggressive growth strategy and expanded business operations in preparation for the public markets.” The news also followed the departure of four senior executives, including the former CEO, following controversial insider share sales. The August announcement was the second layoff of 2022. In May the company laid off nearly 7% of its workforce.
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