Categories: Tech News

Companies that have cut jobs this year

Meta Platforms CEO Mark Zuckerberg speaks at Georgetown University in Washington on October 17, 2019.

Andrew Caballero-Reynolds | AFP | Getty Images

Tech job cuts are piling up as companies that led the 10-year bull market adjust to a new reality.

Days after from Twitter New boss Elon Musk cut half the workforce at his Facebook parent company Goal announced its biggest round of layoffs ever. Meta said Wednesday it is cutting 13 percent of its workforce, which is more than 11,000 employees.

Last month, Meta announced a second consecutive quarter of revenue declines and predicted another drop in the fourth quarter. Digital advertisers are cutting spending as rising inflation curbs consumer spending and apps like Facebook suffer from Apple iOS privacy update, which limited ad targeting.

The tech industry as a whole has seen a number of layoffs in 2022 amid uncertain economic conditions. Here are the big ones that have been announced recently.

Target: about 11,000 jobs cut

GoalDisappointing guidance for the fourth quarter wiped a quarter off 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 adapting after expanding its workforce by 60% during the pandemic. The business has been hit by competition from rivals like TikTok, a sharp slowdown in online ad spending and challenges from Apple’s iOS changes.

In a letter to employees, Zuckerberg said those who lose their jobs will receive 16 weeks of pay plus an additional two weeks for each year of service. Meta will cover the health insurance for six months.

Twitter: About 3,700 jobs cut

Lyft: About 700 jobs cut

Lyft announced last week that it was cutting 13% of its workforce, or about 700 jobs. In a letter to employees, CEO Logan Green and President John Zimmer pointed to “a likely recession sometime next year” and the rising costs of ride-sharing insurance.

For the laid-off workers, the transit company promised 10 weeks of pay, health coverage through the end of April, accelerated vesting of capital by the Nov. 20 hire date and hiring assistance. Workers who had been there for more than four years will receive an additional four weeks’ pay, they added.

Stripe: About 1,100 jobs cut

Online payments giant Stripe laid off roughly 14% of its 1,100-employee workforce last week.

CEO Patrick Collison wrote in a memo to staff that the cuts were necessary amid rising inflation, fears of an impending recession, higher interest rates, energy shocks, tighter investment budgets adjusted and the scarcer initial funding. Taken together, these factors indicate “that 2022 represents the beginning of a different economic climate,” he said.

Stripe said it will pay 14 weeks of severance for all departing employees and more for those with longer tenure. It will also pay the cash equivalent of six months of existing health care or continuation health care premiums.

Stripe was valued at $95 billion last year and reportedly cut its internal valuation to $74 billion in July.

Coinbase: About 1,100 jobs cut

In June, Coinbase announced that it was cutting 18% of full-time jobs, resulting in a reduction of about 1,100 people.

Coinbase CEO Brian Armstrong pointed to a possible recession, the need to manage costs and growth “too fast” during a bull market.

Coinbase, which made its debut on the stock exchange, has lost more than 80% of its value this year, placing next to cryptocurrencies.

Those fired received a minimum of 14 weeks of severance plus 2 additional weeks for each year of employment exceeding one year. They were also offered four months of COBRA health insurance in the US and four months of mental health support globally, according to the company’s announcement.

Shopify: About 1,000 jobs cut

In July, Shopify announced that it was laying off 1,000 workers, which equates to 10% of its global workforce.

In a memo to staff, CEO Tobi Lutke acknowledged he had misjudged how long the pandemic-fueled e-commerce boom would last and said the company is being hit by a broader pullback in online spending . The company’s stock price fell 78% in 2022.

Shopify These terminated employees will receive 16 weeks of severance pay, plus one week for each year of service with the company.

Netflix: About 450 jobs cut

netflix announced two rounds of layoffs. In May, the streaming service cut 150 jobs after Netflix reported its first subscriber loss in a decade. In late June, Netflix announced another 300 layoffs.

In a statement to employees, the company said: “While we continue to invest significantly in the business, we made these adjustments so that our costs grow in line with our slower revenue growth.”

Netflix shares are down 58% this year.

Microsoft: Fewer than 1,000 job cuts

Snap: More than 1,000 jobs cut

In late August, Snap announced that it was laying off 20% of its workforce, which equates to more than 1,000 employees.

snap CEO Evan Spiegel told employees in a memo that the company must restructure its business to address its financial challenges. He said the company’s current year-over-year revenue growth rate for the quarter of 8% “is well below what we expected at the beginning of the year.”

Snap has lost 80% of its value this year.

Robinhood: 31% of its workforce

Retail brokerage firm Robinhood cut 23% of its workforce in August, after cutting 9% of its workforce in April.

Robin Hood CEO Vlad Tenev blamed “the deterioration of the macro environment, with inflation at 40-year highs accompanied by a broad crypto market crash.”

Shares have more than halved in 2022.

Campana: About 160 jobs cut

Fintech company Chime laid off 12% of its workforce, or about 160 employees, earlier this month.

A Chime spokesperson told CNBC that the so-called challenger bank, a fintech company that exclusively offers banking services through websites and smartphone apps, is cutting 12 percent of its 1,300-person workforce. The company said that while it is cutting approximately 160 employees, it is still hiring for select positions and remains “very well capitalized.”

Private investors valued Chime at $25 billion just over a year ago.

Tesla: Cuts 10% of Salaried Employees


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