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Thousands of people lose their jobs at leading tech companies

Layoffs in 2022: Thousands lose their jobs at leading tech companies

20 October 2022 at 12:34
3 minutes of reading

Tech giants are firing their employees for fear of recession

Big Tech companies around the world have been the gold standard for attractive benefits and high salaries. However, an approaching recession could change everything.

As painful as can be, mass layoffs are one of the direct effects of the economic downturn. Tech giants do just that.

Here, we take a look at the tech companies that are making layoffs this year.

Microsoft lays off employees for the third time

Microsoft laid off about 1,000 employees, giving us a hint of what’s to come in the near future. The company cut jobs in various divisions.

That’s the third time the tech giant has cut its workforce this year. In July, the company laid off about 1% of its employees.

Another 200 people from the consumer R&D team were laid off in August.

Snap laid off more than 1,200 employees

Despite being one of the largest social media companies in the world, Snap has yet to find a way to make a profit.

The company has been trying ways to optimize its business, but failed to do so. This year alone, the company has lost 80% of its value.

In August, the company laid off 20% of its workforce, or more than 1,200 workers.

The commodity is not used for cost cuts or hiring freezes. But in September, Mark Zuckerberg announced that the company will shrink by the end of 2023.

The company is preparing for a selective restructuring. It is reported that this could lead to about 12,000 people losing their jobs.

The company has also decided to stop hiring for the time being.

Alongside fears of economic slowdown and recession, the commodity has to contend with its own unique challenges. For example, Apple’s privacy policy change was a major blow to the company’s advertising revenue. Similarly, his over-enthusiastic approach to the metaverse has yet to win awards.

Coinbase lays off 18% of its workforce

2022 has not been a good year for the cryptocurrency market. The crypto price crash earlier this year was a huge blow to investors and stock markets.

Coinbase, one of the largest exchanges, was also among those affected. In June, the company announced its restructuring plan. This included laying off 18% of the workforce, or 1,100 employees.

Netflix laid off 450 employees this year

This year, Netflix reported its first loss of subscribers in over a decade. The first two quarters of the year were the worst for the streaming giant.

This forced the company to lay off some of its employees. So far, Netflix has experienced two rounds of layoffs this year.

It laid off 150 jobs in May. This was followed by the layoffs of 300 more employees.

Apple lays off 100 contract workers

Unlike its peers, Apple’s 2022 was not full of bad omens. The company has released healthy quarterly figures so far.

But even the Cupertino-based tech giant hasn’t been able to escape the grip of the economic slowdown. The company laid off 100 contract recruiters in August.

The company is now deliberately hiring, keeping in mind inflation and a possible economic downturn.

Tesla lays off 229 employees of its Autopilot team

Tesla is another surprising entrant on the list. Elon Musk’s EV brand is under pressure due to the global supply chain crisis and prolonged COVID-19 restrictions in China.

In July, the company laid off 229 of its famous Autopilot team and closed their San Mateo office in California where they worked.

Musk announced a 10% reduction in the workforce in June.