Tech layoffs continue across the board: Here are the latest
The tech sector’s massive cost-cutting mission doesn’t seem to be slowing anytime soon.
In the past, high-flying companies with unprecedented valuations and growth-at-all-costs strategies have begun to pull back, as the economy appears to be heading for a slowdown. The efforts, which began in May, have resulted in mass layoffs at several companies, from startups to publicly traded companies worth billions of dollars.
Layoffs in the sector occur for a variety of reasons. But it is clear that the market is in an entirely different situation than in 2021, when transactions were happening at a rapid pace and investors were launching headlong into funding rounds with exorbitant valuations. Several venture capital and private equity firms, for example, have warned their portfolio companies to preserve cash and look for ways to cut costs. Often this takes the form of hiring freezes or job cuts.
fast company compiles an ongoing list of tech companies that recently announced layoffs:
Oracle appears to be the latest of the tech companies to announce widespread layoffs. information reported that the company had laid off an unknown number of American workers, with plans in the coming months to lay off more in Canada, India and parts of Europe, which would amount to “thousands”. A spokesperson did not immediately respond to fast companyrequest for comment. However, several LinkedIn users, who listed their employment as Oracle, took to the social media platform to share that they were part of the layoffs and were looking for new work.
In July, Shopify laid off about 10% of its workforce, or about 1,000 workers. CEO Tobi Lütke told employees at the time that he had overestimated the duration of the pandemic e-commerce boom, expecting the adaptation of online shopping to have taken a permanent jump from 5 to 10. year.
Netflix laid off 300 employees in June after the company announced it had lost subscribers for the first time in more than a decade and slowed revenue growth. Netflix, in an attempt to address the decline, said it would roll out an ad-supported tier to attract more subscribers.
Coinbase told employees in June that the cryptocurrency exchange was cutting its workforce by about 18% before the economic downturn. “While it is difficult to predict the economy or the markets, we always plan for the worst so that we can operate the business in any environment,” CEO Brian Armstrong told employees.
Lyft cut about 60 jobs in its rental division in July in a bid to reorganize the business amid rising costs. The company also said it would discontinue its service where it offered its cars for long-term rentals.