Tracking the largest layoffs happening across the economy


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The US job market is very strong despite other economic headwinds. But there has been a spike in large-scale layoffs in recent months. Even large companies with relatively healthy balance sheets are cutting hundreds of white-collar positions, with some of the biggest cuts in the technology and media sectors.

The economy added 223,000 jobs in December and the unemployment rate fell to a near-record low of 3.5%, according to the Bureau of Labor Statistics. It’s kind of a headache. Meanwhile, many experts say a recession is likely.

Tech and Internet companies have made some of the most notable layoff announcements.

Aaron Terrazas, chief economist at employment website Glassdoor, said there are three types of companies laying off workers right now. People uncertain about the economic outlook. And those who cut their workforce on the pretext of the economic climate will let go anyway.

“The biggest issue right now is this reassessment of risk,” Terrazas said, noting that companies coming out of the pandemic will have to contend with geopolitics, employee retention, investment and supply chains.

“Today’s business leaders have been plagued by a never-ending parade of risk events for the past few years and desperately want a year where things go according to plan, so they plan conservatively.” he said. “That’s the dynamic we see in the economy.”

Here’s an overview of some of the most significant job cuts, not just for tech companies, but for companies in other industries as well.

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The Seattle-based e-commerce giant first announced in November that it had cut about 10,000 company jobs (many from the human resources, devices and retail sectors), and this week it increased that total to 18,000. The decline is believed to be his biggest in a decade of near-constant expansion, with over 1.5 million employees at the end of September. Amazon, like other tech companies, has been hiring heavily during the pandemic, with analysts saying the layoffs mark the end of an era marked by industry bloat. (Amazon founder and executive chair Jeff Bezos owns his post in Washington.)

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in November, The parent company of Facebook and Instagram has announced plans to cut 11,000 jobs, or 13% of its workforce, to keep costs down and focus on transforming its advertising business. The cuts highlighted a turbulent new era in Silicon Valley. The company’s founder, Mark Zuckerberg, has said the decline in online shopping and advertising competition has led to declining revenues. .

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The cloud computing giant, whose products include popular workplace chat system Slack and tools for sales, marketing and customer service, has announced cost-cutting plans that include a 10% reduction in its workforce. He has over 79,000 employees at Salesforce, and layoffs could affect him by nearly 8,000. Co-CEO Marc Benioff said the company overhired when sales surged during the pandemic. Salesforce’s latest quarterly report shows slowing revenue growth.

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Shortly after Elon Musk acquired the San Francisco-based social media company, he laid off many of the company’s executives, laying off about half of its 7,500 employees. Hundreds more workers resigned in November after refusing to sign long-hours pledges, according to The Washington Post. The Tesla billionaire has been under extreme financial pressure since the deal closed in October. Analysts value Twitter at nearly $25 billion, well below Musk and his investors’ $44 billion. He is expected to be $1 billion in debt in annual interest payments alone after taking out a large loan to help pay for it. increase.

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In December, the investment bank cut about 1,600 employees, or 2% of its workforce, CNBC reported. Job cuts appeared to be part of a tradition among Morgan Stanley and his peers to cut the percentage of underperforming companies at the end of the year. This practice had been suspended during the pandemic. The bank has grown its workforce by about 34% since early 2020 as a result of two acquisitions. Inflation is affecting dealmaking, putting pressure on the investment bank that made record profits a year ago from consulting on mergers, acquisitions and IPOs, according to Reuters.

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Ford laid off about 3,000 white-collar contractors in August, according to The Wall Street Journal. According to the Journal, this represents his 1% reduction in Ford’s workforce of 183,000, mostly affecting workers in the United States, Canada and India.

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Food delivery companies, swollen by pandemic jobs, cut 1,250 jobs in November. This corresponds to approximately 6% of the workforce. CEO Tony Xu said in a memo to employees that the company’s revenue growth was outpaced by operating expenses, so company leaders “weren’t strict enough to have to manage the growth of the team.” .

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The world’s second-largest fashion retailer, based in Sweden, announced in November that it would cut 1,500 jobs, about 1% of its workforce. The move was part of a $177 million effort to cut costs amid soaring inflation in Europe linked to the war in Ukraine, according to Reuters. Exacerbating the retailer’s woes was the third-quarter results as Zara’s owner struggled to keep up with his Inditex.

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The computer giant announced in November that it would cut 4,000 to 6,000 employees by the end of 2025 to cut costs. The announcement comes after HP reported an 11.2% decline in fourth-quarter revenue compared to the same period in 2021. Full-year sales he fell 0.8%. Staff reductions were part of the company’s Transformation for the Future plan.

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In a November blog post, the cryptocurrency exchange said it would cut salaries by 30%, or 1,100 employees, to “adapt to current market conditions.” The industry will hit a dramatic recession in 2022, with billions of dollars of investment lost.

Kraken said it has tripled its global workforce in recent years and said the cuts would bring headcount back to 2021 levels. “Unfortunately, the negative impact on financial markets continues and we have exhausted our preferred options for matching costs to demand,” the firm wrote.

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Online payment company Stripe cuts 14% of its workforce. In a memo to his employees in November, the company said the cuts would bring Stripe’s headcount to roughly the same number he had in February, laying off about 1,100 people.

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Shopify announced last summer that it would lay off 10% of its workforce. The company reports it will have over 10,000 employees by the end of 2021, and the layoffs are estimated to affect around 1,000 workers.

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Video streaming company Vimeo said Wednesday it will lay off about 11% of its workforce, or about 140 people, “due to the uncertain economic environment.”


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