Amazon and Other Tech Companies Have Laid Off Over 60,000 Employees in the Last Year

Tech land is seeing job cuts as the companies that led the 10-year bull markets adapt to a new reality.

Microsoft said Wednesday that it’s letting go of 10,000 employeesThe company will have a 5% reduction in its headcount. Amazon A similar process was also initiated. fresh round of job cuts They are expected to reduce the workforce by more than 18,000 and make this the largest workforce reduction in e-retailer history.

These layoffs are occurring during a period of slower growth, higher inflation rates, and fears about a recession next year.

These are the biggest cuts made in the tech industry thus far. These numbers are based on media reports, filings, and public statements.

Microsoft Is reducing 10,000 workers through March 31 As the software maker prepares for slower revenue growth, The company is also taking a $1.2 million charge.

“I’m confident that Microsoft will emerge from this stronger and more competitive,” Satya Nadella, CEO of Satya Nadella, made the announcement in a memo that was sent to employees. on the company website Wednesday. He said that employees may find out in the next week whether they are losing their jobs.

This month, Amazon Andy Jassy, CEO said the company was planning to lay off more than 18,000 employees, It was mainly in its stores and human resources divisions. This was after Amazon announced in November that it was seeking to reduce staff in its stores and recruitment organizations. CNBC reported At the time, the company wanted to lay off around 10,000 employees.

Amazon went on a hiring spree in the midst of the Covid-19 pandemic. Amazon’s global workforce has risen to over 1.6 million by 2021. That is up from 799,000 in the fourth quarter 2018.

Google parent company Alphabet It had mostly avoided layoffs up until January when it made drastic changes. 15% of employees Verily, the company’s health sciences division. Google, however, has not made significant layoffs since Jan. 18, although employees are. increasingly growing worried The axe may soon be taken.

Crypto.com announced plans for a 20% layoff of its workforce January 13. According to PitchBook data the company had 2,450 employees. This suggests that around 490 people were laid off. 

Kris Marszalek, CEO, stated in a blog post That the crypto exchange grew “ambitiously” However, he was unable to weather it. collapse The crypto empire of Sam Bankman-Fried FTX Without any further cuts.

“All impacted personnel have already been notified,” Marszalek stated this in a blog post.

January 10, 2010 Coinbase Plans to be announced cut about a fifth of its workforce It is trying to keep cash in reserve during the downturn in crypto markets.

The exchange intends to reduce 950 According to a blog post, jobs CoinbaseThe company, which had approximately 4,700 employees at the end of September had already slashed In June, 18% said that it had to manage the costs of growing after it hired employees. “too quickly” During the bull market.

“With perfect hindsight, looking back, we should have done more,” CNBC spoke with Brian Armstrong, the CEO, during a telephone interview. “The best you can do is react quickly once information becomes available, and that’s what we’re doing in this case.”

Salesforce Is cutting 10% of its personnel The company will be relocating some offices as part of its restructuring plan. announced Jan. 4. It is used more than 79,000 workers As of December

Marc Benioff, co-CEO, wrote to employees that customers are more satisfied. “measured” Salesforce was able to help customers make better purchasing decisions in the face of the difficult macroeconomic environment. “very difficult decision” To lay off workers.

Salesforce claimed it will be liable for charges of $1billion to $1.4billion related to headcount reductions and $450m to $650m related to office space reductions.

Facebook parent Meta It was announced most significant round of layoffs ever In November. According to the company’s plans, they will be closing all of their offices by November. 13% of its staffIt employs more than 11,000 people.

MetaThe stock fell to its lowest level since 2016, after the disappointing guidance of’s fourth quarter 2022 was released. This wiped out one-fourth the company’s market capital.

After expanding its headcount by approximately 60% during the pandemic, the tech giant has made these cuts. The business has been hurt Competition from TikTok and other competitors, a slowdown in online advertising spending and the challenges presented by Apple’s iOS changes.

Lyft It was announced in November that it cut 13% approximately 700 jobs, out of the total staff. President John Zimmer and CEO Logan Green wrote to employees to remind them of the importance of “a probable recession sometime in the next year” Ride-share insurance is on the rise.

The ride-hailing service promised to pay 10 weeks’ wages, health coverage through April, accelerated equity vesting, and assistance with recruiting for laid-off employees. Workers who worked for the company for four years or more will be eligible to receive an additional four-weeks of pay.

Online payments are a huge success Stripe announced plans to lay off roughly 14% The company employs approximately 1,100 people in November. 

Patrick Collison, CEO in a memo to staff These cuts were needed amid rising inflation and fears of a recession. All of these factors indicate that there are several important issues. “that 2022 represents the beginning of a different economic climate,” He stated.

Stripe was valued in 2013 at $95billion. It reportedly dropped its internal valuation to $74billion in July.

In July Shopify announced it laid off 1,000 employeesThis equals 10% of its global workforce. 

Tobi Lutke, the CEO, acknowledged that he misjudged the length of the pandemic-driven boom in e-commerce and stated that the company is now being affected by a wider pullback in online shopping. Its stock price has fallen 78% since 2022.

Netflix Announcement two rounds of layoffs. The streaming service was shut down in May 150 jobs The company had suffered its first subscriber decline in 10 years. It also announced 300 additional layoffs in late June. 

Netflix released the following statement to employees: “While we continue to invest significantly in the business, we made these adjustments so that our costs are growing in line with our slower revenue growth.” 

In late August, Snap announced it laid off 20% of its workforceThis equates to more than 1,000 employees. 

Snap In a memo, Evan Spiegel, CEO of the company, stated to employees that the company must restructure itself to address its financial problems. He stated that the company’s quarterly revenue growth rate was 8%. “is well below what we were expecting earlier this year.”

Retail brokerage firm Robinhood slashed 23% of its stafAfter having cut 9% of its workforce in April, f reported a 3% increase in August. This is based on reports and public filings. It amounts to more that 1,100 employees.

Robinhood CEO Vlad Tenev blamed “deterioration of the macro environment, with inflation at 40-year highs accompanied by a broad crypto market crash.”

In June Tesla CEO Elon Musk wrote in an email To all employees, the company announced that it was cutting 10% of its salaried workers. The Wall Street Journal estimated According to public filings, approximately 6,000 employees would be affected by the reductions.

“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.”