Sluggish consumer spending, higher central bank interest rates and a strong dollar overseas point to a possible recession. As a result, tech firms including Apple, Meta and Amazon are cutting jobs or freezing hiring to keep the ship afloat.
The third quarter witnessed a number of layoffs in Silicon Valley as well as in the Indian IT industry. A recent statistic from Crunch base, which provides insight into the ongoing business world, reveals that US-based tech firms have laid off more than 45,000 employees as of October 2022. Those layoffs include Twitter’s latest mass layoffs, which cut roughly half of the company.
Facebook Owner Said: Mark Zuckerberg
Mark Zuckerberg, CEO of Meta (formerly Facebook), has confirmed that the company is laying off people in large numbers. In an email sent to hundreds of executives, the company’s CEO claimed responsibility for the overstaffing problem.
Mark Zuckerberg attributed the problem to being “too optimistic” about the company’s growth. Musk is said to begin mass layoffs on Wednesday. Mass layoffs in Meta will put thousands of people out of work.
According to the data of Wall Street:
According to a Wall Street Journal report, Zuckerberg took responsibility for the company’s missteps. According to the report, this will be Meta’s largest round of layoffs and likely the largest this year in the tech sector. It will be the biggest reduction in Meta’s workforce since it was founded in 2018.
The report suggests most of the layoffs will be in recruiting and sales teams. The company is expected to make an internal announcement at 6:00 AM ET (4:30 PM IST), officially kicking off the process in the morning, the specific employee will be informed about the dismissal status.
Meta joins the list of tech companies resorting to mass layoffs due to poor financial prospects. Twitter recently laid off roughly half of its employees in offices around the world. The company’s India branch has laid off about 90% of its workforce. Unlike Zuckerberg, Musk bought his company days before the mass layoffs occurred. With the company losing about $4 million a day, he claimed he “had no choice.”
A lot has changed at Twitter’s headquarters in San Francisco, California. With the administration under Elon Musk, the company saw the immediate firing of top executives, including Twitter CEO Parag Agrawal, CFO Ned Segal and head of legal and policy Vijayi Gadde. rice field. But on November 4, Elon Musk decided to cut costs even more and laid off half of his 7,500 employees. About 3,700 employees were laid off across the division. In India alone, about 180 of the 230 employees across content, partnerships, content management, sales and social marketing teams have been let go.
Apple
Apple laid off about 100 contract recruiters in August, but the tech giant has no plans to hire more. Bloomberg reported that the company recently stopped hiring for many positions outside of R&D. Apple is facing slow sales of its iPhone 14 and iPhone 14 Pro series in China and expects sales to decline further in the upcoming holiday season. As a result, the company is trying to save the budget by suspending recruitment
Microsoft
Microsoft also confirmed the layoffs. The company recently laid off about 1,000 employees across several areas of its business. The company said it was cutting staff worldwide to focus on its business priorities and “make structural adjustments”. In an official statement, Microsoft said: “Over the next year, we will continue to invest in our business and hire employees in key areas of growth. Amazingly, this is its third layoff in four months for Microsoft. In early July, the technology giant laid off nearly 1% of its 180,000 employees in its offices and product divisions, citing “restructuring.”
As part of its quarterly plans, it plans to lay off thousands of workers. Intel CEO Pat Gel singer admitted that the company wants to focus on efficiency and profitability, although there may be ” labor costs.” In addition, the world’s largest semiconductor maker also confirmed it will cut about 20% of its workforce next year, after it plans to cut $10 billion in annual spending by 2025.
You would be Unicorn startup Byju’s has announced that it will lay off 2,500 employees, or 5% of its workforce, over the next six months. The company is gradually laying off about 2,500 of its 50,000 employees across divisions such as products, content, media and technology.