Just this week, Alphabet, parent company of Google, Microsoft (MSFT) and Vox Media announced layoffs that affect more than 22,000 workers.
His moves follow job cuts earlier this month at Amazon, Goldman Sachs and Salesforce. More companies are expected to do the same, as companies that have aggressively hired over the last couple of years have put on the brakes and, in many cases, backed out.
The cuts are in stark contrast to 2022, which saw the second-highest level of job gains on record at 4.5 million. But the number of jobs from last year has started to decline as the year has gone on, with the December jobs report showing the lowest monthly gains in two years.
The highest level of hiring occurred in 2021, when 6.7 million jobs were added. But that was just after the first year of the pandemic, when the US effectively shut down and 9.3 million jobs were lost.
The current layoffs come across a range of sectors, from media companies to Wall Street, but so far they are hitting big tech companies in particular.
This is in contrast to job losses during the pandemic, which saw consumers’ buying habits shift to e-commerce and other online services during the lockdown. Tech companies have started a hiring spree.
But now, workers are heading back to their offices and personal shopping is picking up. Add the growing likelihood of a recession, higher interest rates and lukewarm demand from rising prices, and tech companies are cutting costs.
January was filled with headlines announcing job cuts at company after company. Here is a list of layoffs this month – until here.
Google’s parent company (GOOGL) said on Friday it is laying off 12,000 workers in product areas and regions, or 6% of its workforce. Alphabet has added 50,000 employees over the past two years as the pandemic has created greater demand for its services. But recent recession fears have caused advertisers to pull out of their core business of digital advertising.
“Over the past two years, we’ve seen periods of dramatic growth,” CEO Sundar Pichai said in an email to employees. “To accompany and feed this growth, we hired for an economic reality different from the one we face today.”
The tech giant is laying off 10,000 employees, the company said in a securities filing on Wednesday. Globally, Microsoft has 221,000 full-time employees, with 122,000 of them based in the US.
CEO Satya Nadella said during a talk in Davos that “nobody can defy gravity” and that Microsoft could not ignore the weaker global economy.
“We are living in times of significant change, and when I meet with customers and partners, some things become clear,” Nadella wrote in a memo. “First, as we saw customers accelerate their digital spending during the pandemic, now we see them optimize their digital spending to do more with less.”
The publisher of news and opinion site Vox, technology site The Verge and New York Magazine announced on Friday that it is cutting 7% of its staff, or about 130 people.
“We are experiencing and expect more of the same economic and financial pressures that others in the media and technology industries have faced,” Chief Executive Jim Bankoff said in a memo.
The layoffs are also hitting Wall Street hard. The world’s largest asset manager is shedding 500 jobs, or less than 3% of its workforce.
Today’s “unprecedented market environment” stands in stark contrast to its attitude over the last three years, when it increased its headcount by around 22%. Its last major round of cuts was in 2019.
The bank will lay off up to 3,200 employees this month amid a slump in global business activity. More than a third of the cuts are expected to come from the company’s commercial and banking units. Goldman Sachs (FADXX) had nearly 50,000 employees at the end of the third quarter of last year.
The cryptocurrency exchange announced in early January that it is laying off 950 people – nearly one in five employees in its workforce. The move comes just months after Coinbase laid off 1,100 people.
While Bitcoin has had a solid start to the year, cryptocurrency companies have been hit by significant drops in the prices of Bitcoin and other cryptocurrencies.
McDonald’s (MCD), which thrived during the pandemic, is planning to cut some of its corporate employees, CEO Chris Kempczinski said this month.
“We will be assessing roles and staffing levels in parts of the organization and there will be tough discussions and decisions ahead,” said Kempszinski, outlining a plan to “break down internal barriers, grow more innovative and reduce work that doesn’t align with the organization’s priorities. company”.
The online subscription-based clothing retailer said it plans to lay off 20% of its salaried staff.
“We will lose many talented team members across the company and I am so sorry,” wrote Stitch Fix (SFIX) founder and former CEO Katrina Lake in a blog post.
At the start of the new year, Amazon (AMZN) said it plans to lay off more than 18,000 employees. Human resources departments for the company Amazon (AMZN) stores will be affected.
“Companies that last a long time go through different phases. They’re not in heavy headcount expansion mode every year,” CEO Andy Jassy said in a memo to employees.
Amazon has grown during the pandemic and has hired rapidly in recent years. But demand has cooled as consumers return to their offline lives and struggle with high prices. Amazon says it has more than 800,000 employees.
At The New York Times’ DealBook summit in November, Jassy said he believed Amazon “made the right decision” about rapidly building its infrastructure, but said its hiring spree is a “lesson for all.”
Even as he spoke, Amazon warehouse workers who helped organize the company’s first US labor union at a Staten Island facility last year were picketing Jassy’s presence outside the conference venue.
“We definitely want to take this opportunity to let you know that the workers are waiting and we are ready to negotiate our first contract,” said Amazon Workers Union President Chris Smalls, calling the protest a “welcoming party ” to Jassy.
Salesforce (CRM) will cut about 10% of its workforce from its 70,000+ employees and reduce its real estate footprint. In a letter to employees, Salesforce (CRM) President and Co-CEO Marc Benioff admitted to adding a lot to the company’s headcount in the early days. in the pandemic.
– Clare Duffy, Matt Egan, Oliver Darcy, Julia Horowitz, Catherine Thorbecke, Paul R. La Monica, Nathaniel Meyersohn, Parija Kavilanz, Danielle Wiener-Bronner, and Hanna Ziady contributed to this report.