Tech Industry in Turmoil: Giant Companies Cutting Thousands of Jobs in The Face of Inflation
The tech industry is facing a new reality as companies that led the 10-year bull market to adapt to slowing growth, higher interest rates to battle inflation, and fears of a possible recession next year. As a result, job cuts are piling up, with some of the biggest tech giants announcing massive layoffs in recent months.
Alphabet: 12,000 Jobs Cut
Google, owned by parent company Alphabet, announced plans to lay off 12,000 people from its workforce on Friday. Sundar Pichai, Google’s CEO, said in an email sent to the company’s staff that the firm will begin making layoffs in the U.S. immediately. In other countries, the process “will take longer due to local laws and practices,” he said.
Microsoft: 10,000 Jobs Cut
Microsoft is reducing 10,000 workers through March 31 as the software maker braces for slower revenue growth. The company also is taking a $1.2 billion charge. “I’m confident that Microsoft will emerge from this stronger and more competitive,” CEO Satya Nadella announced in a memo to employees that was posted on the company website Wednesday.
Meta: 11,000 Jobs Cut
Facebook parent Meta announced its most significant round of layoffs ever in November. The company said it plans to eliminate 13% of its staff, which amounts to more than 11,000 employees. Meta’s cuts come after it expanded its headcount by about 60% during the pandemic. The business has been hurt by competition from rivals such as TikTok, a broad slowdown in online ad spending, and challenges from Apple’s iOS changes.
Twitter: 3,700 Jobs Cut
Shortly after closing his $44 billion purchase of Twitter in late October, new owner Elon Musk cut around 3,700 Twitter employees, according to internal communications viewed by CNBC. That’s about half the staff. Since then, significantly more employees have quit after Musk changed some policies around working from home and wrote that he expected all employees to commit to a “hardcore” work environment.
Tesla: 6,000 Jobs Cut
In June, Tesla CEO Elon Musk wrote in an email to all employees that the company was cutting 10% of salaried workers. The Wall Street Journal estimated the reductions would affect about 6,000 employees, based on public filings. “Tesla will be reducing salaried headcount by 10% as we have become overstaffed in many areas,” Musk wrote. “Note this does not apply to anyone actually building cars, battery packs, or installing solar. Hourly headcount will increase.”
Zoom: 1,300 Jobs Cut
On February 7, Zoom CEO Eric Yuan informed employees of the company’s plans to lay off approximately 1,300 workers, representing a 15% reduction in its workforce. The decision was made as the world moved towards a post-pandemic reality and amid uncertainty in the global economy. Despite tripling its staff at the start of the pandemic, Zoom has had to make adjustments to its workforce in response to changing market conditions.
Conclusion
In conclusion, the tech industry is facing a tough time as it adapts to a new reality with slowing growth, higher interest rates, and fears of a possible recession. This has resulted in a number of major layoffs by tech giants such as Alphabet, Microsoft, Meta, Twitter, and Tesla, with thousands of jobs being cut.
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