Meta Platforms CEO Mark Zuckerberg speaks at Georgetown University in Washington on October 17, 2019.
Andrew Caballero-Reynolds | AFP | beautiful pictures
Job cuts in tech land are piling up, as companies that have led the 10-year bull market adjust to the new reality.
Many days later ‘s Twitter new boss Elon Musk cut in half the workforce of his company, the parent company of Facebook Meta announced its most significant layoffs ever. Meta said on Wednesday that it is removing 13% of its employeesmore than 11,000 employees.
Last month, Meta reported a second consecutive quarter of decline in revenue and forecast a further decline in the fourth quarter. Digital advertisers are cutting spending as rising inflation curbs consumer spending and apps like Facebook are suffering Apple An iOS privacy update that has restricted ad targeting.
All in all, the tech industry has seen a string of layoffs in 2022 due to uncertain economic conditions. Here are the big ones that have been announced recently.
MetaThe disappointing fourth-quarter guidance wiped out a quarter of the company’s market capitalization and pushed the stock to its lowest level since 2016.
The company’s Reality Labs division has lost $9.4 billion so far this year due to CEO Mark Zuckerberg’s commitment to the metaverse.
Meta is increasing copyright after expanding its staff to about 60% during the pandemic. Business has been damaged due to competition from rivals like TikTok, a widespread slowdown in online ad spend, and challenges from Apple’s iOS changes.
In a letter to the employeeZuckerberg said those who lose their jobs will receive 16 weeks of pay plus two weeks for each year of work. Meta will cover health insurance for six months.
Lyft announced last week that it 13% cut its employees, or about 700 jobs. In a letter to employees, CEO Logan Green and President John Zimmer pointed to “a recession likely next year” and rising car-sharing insurance costs.
For laid-off workers, the ride-hailing company promises 10 weeks of pay, health care coverage through the end of April, accelerated stakes fight for tender day on November 20, and support recruit. Workers who have worked there for more than four years will be paid an extra four weeks, they added.
Online payment giant Stripe lays off about 14% its headcount, amounted to about 1,100 employees last week.
CEO Patrick Collison wrote in a memo to employees that cuts are necessary amid rising inflation, recession fears, higher interest rates, an energy shock, tighter investment budgets and increasingly sparse capital flows. Taken together, these factors signal “that 2022 represents the beginning of a different economic environment,” he said.
Stripe said it will pay 14 weeks of severance to all employees who are leaving and more for those with longer tenure. It will also pay a cash equivalent of six months of existing or continuing healthcare premiums.
Stripe was valued at $95 billion last year and reportedly lowered its internal valuation to $74 billion in July.
In June, Coinbase announces it’s cutting 18% of full-time jobsreduced by about 1,100 people.
Coinbase, which launched the stock market, has lost more than 80% of its value this year, along with cryptocurrencies.
Those laid off receive a minimum of 14 weeks of severance plus 2 weeks for each year of service after one year. They are also offered four months of COBRA health coverage in the US and four months of mental health support globally, according to the company’s announcement.
In July, Shopify announces layoffs of 1,000 workersequivalent to 10% of the company’s global employees.
In a memo to employees, CEO Tobi Lutke admitted he had misjudged the timing of the e-commerce boom caused by the pandemic and said the company was being hit by a larger drop in costs. spend online. The company’s share price is down 78% in 2022.
Shopify states that laid-off employees will receive 16 weeks of severance pay, plus one week for each year of employment.
Netflix announced two rounds of layoffs. In May, the streaming service was dropped 150 jobs after Netflix reported its first subscriber loss in a decade. At the end of June, Netflix announced 300 more layoffs.
In a statement to employees, the company said, “While we continue to invest significantly in our business, we have made these adjustments to bring our costs up in line with our slower revenue growth.”
Netflix shares are down 58% this year.
At the end of August, Snap announces layoffs of 20% of its workforceequivalent to more than 1,000 employees.
Snap CEO Evan Spiegel told employees in a memo that the company needed to restructure its business to deal with financial challenges. He said the company’s current annual revenue growth rate for the quarter of 8% is “much lower than what we had expected earlier this year.”
Snap has lost 80% of its value this year.
Retail brokerage company Robinhood has cut the stakes by 23%f in August, after cutting the workforce by 9% in April.
Shares will more than halve in 2022.
Earlier this month, Fintech company Chime lays off 12% of its workforceor about 160 employees.
A Chime spokesperson told CNBC that the so-called challenger bank — a fintech company that specializes in providing banking services through websites and smartphone apps — is taking a 12% cut out of 1,300 its human resources. The company said that while it eliminated about 160 employees, it was still hiring for select positions and remained “very well capitalized”.
Private investors valued Chime at $25 billion just over a year ago.