Tech layoffs continue across the board: Here’s the latest
The tech sector’s massive cost-cutting mission doesn’t slow down anytime soon.
The once high-flying companies, with unprecedented valuations and growth-at-cost strategies, have begun to scale back when the economy appears to be headed for a recession. Efforts that began in May have resulted in massive layoffs at many firms, from startups to publicly traded companies that are worth billions of dollars.
Layoffs in the sector are happening due to many reasons. But it’s clear the market is in an entirely different place than it was in 2021, when dealmaking was happening at a brisk pace, and investors were jumping into funding rounds with sky-high valuations earlier. Many venture capitalists and private equity firms, for example, are warning their portfolio companies to look for ways to conserve cash and cut costs. Often, this comes in the form of hiring or job cuts.
fast company Compiling a list of tech companies that recently announced layoffs:
Oracle appears to be the latest tech firm to announce widespread layoffs. Information The report said the company also plans to lay off some unspecified US employees in the coming months in parts of Canada, India and Europe, which will amount to “thousands”. A spokesperson did not immediately respond fast companyComment request. However, several LinkedIn users, who listed their employment as Oracle, took to the social media platform to share that they were part of the layoffs and were looking for new work.
In July, Shopify laid off about 10% of its workforce, or about 1,000 workers. CEO Toby Lutke told employees at the time that he estimated how long the boom of the e-commerce pandemic would last, hoping that optimizing online shopping would be permanent beyond 5 to 10 years.
Netflix laid off 300 employees in June after the company reported it had lost subscribers for the first time in more than a decade, and slowed revenue growth. Netflix, in an effort to reverse the decline, said it was launching an ad-supported tier to attract more subscribers.
Coinbase told employees in June that the cryptocurrency exchange was reducing its headcount by about 18% before the economic downturn. CEO Brian Armstrong told employees, “Although it’s difficult to predict the economy or the markets, we always plan for the worst so that we can operate business through any environment.”
In July, Lyft cut about 60 jobs in its rental division in an effort to reorganize the business amid rising costs. The company also said that it would discontinue its service where it had offered its cars for long-term rental.