- Salesforce is cutting 10% of its global workforce, resulting in the loss of about 8,000 jobs.
- Amazon is also cutting far more employees than originally planned, with the 10,000 job cut figure revised to 18,000.
- Rumors are swirling that Google’s parent company, Alphabet, is laying off an employee.
And hit songs one after another.
With the start of the new year, you might have thought that the damage of 2022 would be a thing of the past. Perhaps you were hoping that technology would start to turn around and your portfolio and San Francisco Craigslist’s classifieds section would start showing signs of life.
I’m not saying it’ll never happen in 2023, but so far we’re stuck with the 2022 storyline.
This is because new layoffs have been announced over the last 24 hours. And it’s from some celebrities. Salesforce announced new headcount cuts, and Amazon expanded his first layoffs announced in November, adding thousands to the list of staff who need to return key cards.
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8,000 fewer employees at Salesforce
Salesforce is taking steps to reduce costs and streamline operations as economic challenges continue into 2023. As part of this effort, the company announced yesterday that it would lay off his 10% of its workforce and close some offices.
It would be nice if you could wait until Christmas is over.
The move is expected to record approximately $800 million to $1 billion in the fourth quarter and generate charges of $1.4 billion to $2.1 billion. This ranges from retirement packages and stock acquisitions to well-compensated salaries.
Salesforce believes these moves are necessary to ensure the company’s long-term success and sustainability after hiring “too many people” during the pandemic.
Shares rose 5% on the news. This is because shareholders are pleased with the cost savings ahead of what is expected to be an even more difficult year.
The pandemic has forced many companies to rely on cloud services, but those same companies are looking to cut costs now that things are starting to get back to normal. This has meant headcount cuts and delays in new projects, putting pressure on companies like Salesforce and Microsoft.
According to Marc Benioff, co-CEO of Salesforce, “The environment remains challenging and our customers are taking a more cautious approach to purchasing decisions.” Pay attention to money.
Benioff then acknowledged that Salesforce “hired too many people leading to this economic downturn we’re facing right now,” and said he took responsibility for it.
Amazon cuts more than 18,000 jobs in record layoffs
After Amazon announced late last year that it would cut 10,000 jobs, did you think layoffs were over?
The online retail giant announced in a company memo that it will cut a total of 18,000 jobs, the most in the company’s history. Most of the layoffs come from the consumer retail and human resources departments.
Amazon also says it is scaling back non-profitable projects like the Echo and delivery robots. We may have to wait a little longer for Amazon’s drone rollout to hit the world.
CEO Andy Jassy said Amazon “has been hiring rapidly for several years” and blamed “an uncertain economy” for the job cuts. He added that the announcement was brought forward because one of the company’s employees leaked the news.
The company has also stopped hiring new staff, halted some of its warehouse expansions, and warned it had overhired during the pandemic (I feel the theme here).
Amazon began layoffs as early as November, according to a LinkedIn post by a worker who said she was affected by the job cuts.
The move comes as tech companies are feeling the pressure as the cost of living rises, lower advertising revenues and lower consumer spending.
Amazon employees affected by the job cuts will be notified by January 18th. Analysts expect more job cuts are likely in the coming months and years as Amazon tries to survive in this tough economy.
More layoffs expected at Google
There is also renewed speculation that Google’s parent company, Alphabet, may also be considering layoffs.
This rumor is based on the fact that Google is changing its performance evaluation system, which many believe could be bad news for some employees.
The new system makes it harder for employees to get high marks and more likely to get low marks. Under the new system, Google believes her 6% of employees fall into the danger zone category, putting her at higher risk for performance reviews. This figure used to be his 2%.
At the same time, it becomes difficult to achieve high scores. Google predicts that just 22% of employees will be rated in one of his two highest categories, down from 27% previously.
So the idea is to make it easier to weed out underperforming employees, while at the same time curbing big bonuses and raises for employee outperformance.
A new system called Google Reviews and Development (GRAD) is already causing anxiety among employees who are complaining about procedural and technical issues as the year-end deadline approaches.
Anxiety is exacerbated by a wave of layoffs in the tech industry, with some employees wondering if they’re next. At a recent all-hands meeting, employees expressed their dissatisfaction with management. Management has long promised transparency, but has not directly answered questions about personnel.
Some believe that this could allow 10,000 “Googlers” to see the door.
What do tech layoffs mean for investors?
In the short term, layoffs are not necessarily seen as bad for a company’s stock price. It comes down to the reasons behind them. For some companies, restructuring efforts are seen as a long-term positive, which could lead to higher prices.
Also, job cuts could indicate that the company is under pressure to maintain profitability, which will obviously drive prices down.
What is certain is that picking a winner in a volatile market is really difficult. That’s why we created the Emerging Tech Kit, which uses the power of AI to do the heavy lifting for you.
The kit uses AI to predict performance over the next week in four technology areas. These are tech ETFs, large-cap tech stocks, growth tech stocks, and public trust crypto.
As these predictions are made for both the verticals and the individual securities within each vertical, the AI automatically rebalances the kits to match the predictions. This is done weekly to ensure decisions are always up to date.
If you want to invest in technology, it makes sense to have technology itself on your side. There is nothing more cutting-edge than AI today.
Worried about volatility?
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It is updated weekly based on forecasts of how the portfolio will be impacted by various factors such as interest rates, oil prices and levels of market volatility.
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