Categories: Tech News

Redfin’s layoffs are just the latest job cuts in the tech industry

The wave of layoffs in the tech industry continues to grow.

Software company Salesforce cut hundreds of jobs this week, according to reports. The company confirmed the layoffs by email.

“Our sales performance process drives accountability. Unfortunately, this may cause some to leave the business, and we support them during their transition,” a Salesforce spokesperson said in a statement.

Salesforce did not disclose how many workers were laid off or when the layoffs were implemented.

CNBC reported Monday that the layoffs affected fewer than 1,000 people, representing a small portion of the company’s workforce, citing an unnamed source. Salesforce reported 78,634 employees on July 31.

Protocol first reported the layoffs, saying the cuts could affect up to 2,500 workers “amid a new challenge from activist investors and tough economic conditions.”

News of the layoffs came after it was reported last month that activist investor Starboard Value disclosed a stake in the company.

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Redfin cuts 13% of its workforce

Meanwhile, online real estate brokerage Redfin announced Wednesday that it will lay off 862 employees, about 13 percent of its workforce, and close its iBuying home-swapping business amid a depressed housing market. deceleration

The move follows another cut announced in June, when Redfin let go about 470 employees, about 6% of its workforce, after a drop in demand. The number of people working at the company has dropped 27% since April 30, according to a company blog post.

“The June layoff was in response to our expectation that we would sell fewer homes in 2022; this layoff assumes the decline will last at least through 2023,” Redfin CEO Glenn Kelman said in an email to employees .

Layoffs sweeping the technology sector

Salesforce and Redfin join a number of tech companies that have recently announced layoffs and other cost-cutting measures as employers prepare for a possible recession next year.

Also on Wednesday, Facebook’s parent company Meta announced it will lay off more than 11,000 employees, a 13% reduction in the workforce, after significantly increasing investments during the pandemic as e-commerce increased.

“Not only has online commerce returned to previous trends, but the macroeconomic downturn, increased competition and loss of ad signal have meant that our revenue is much lower than we expected,” he said. said Mark Zuckerberg, CEO of Meta, in a message to employees. “I was wrong and I take responsibility for it.”

Facebook rival Twitter last week laid off about half of its workforce of more than 7,500 full-time employees shortly after billionaire Elon Musk acquired the social media platform. However, according to Bloomberg reports, the company asked for the return of dozens of workers.

As of the end of October, more than 52,000 tech workers in the US have been laid off this year, according to a Crunchbase analysis.

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