Tech Layoffs Keep Coming

Since mid-2022, tech companies have laid off thousands of employees due to declining sales and profits, and the admission of some CEOs they may have been too eager to hire in the past year. Endless layoffs over the past ten months have angered workers, many of whom are drawn to these companies by their employee-friendly culture.

The remaining workers at these companies not only get a break from their co-workers, but their regular benefits are removed or significantly reduced.

A recent TechCrunch article on layoffs revealed that more than 168,400 workers will be laid off at tech companies by 2023. As more employees seek to better align their workforce with corporate goals.

Meta does it again

One of the repeat offenders is Facebook founder Meta, who confirmed rumors in mid-March that the company would cut another 10,000 jobs and eliminate 5,000 open positions. Meta first made headlines last November when it laid off 11,000 employees, or 13% of its workforce. Most of these cuts were reportedly in customer service areas, resulting in fewer people experiencing hacked accounts and other service issues for those with Facebook and other social media accounts.

Amazon announced last month that it would cut another 9,000 jobs and lay off even more employees. In January, Amazon announced that it was cutting 18,000 outlets.

A TechCrunch article notes that Microsoft will cut 559 jobs at its Bellevue and Redmond locations by the end of March, following an earlier announcement by the software provider of 10,000 jobs. Among those affected is a team dedicated to driving AI innovation that leads to responsible and ethical outcomes, which is a major blow to those who support more responsible AI companies.

Unlike other tech companies that have taken a conservative approach to hiring in recent years, Apple couldn't survive the layoff party. The consumer electronics company said it will soon lay off a large number of employees in its retail group. Apple is facing a decline in sales of its smartphones and personal computers.

According to Layoffs.fi, other tech companies that have recently laid off employees include Roku, GitHub, Disney, Salesforce (again) and Accenture.

Accept change

Although many tech companies are known to offer relatively generous severance pay to contract workers, the way layoffs are handled, such as by email, angers many. Some employers believe that these companies may represent past layoffs.

"When you're in business for a long time, you have a strategy in place," says Mina Alexander, vice president of human resources and talent at Horizon Labs, a blockchain tools provider. "Relatively new companies should not be used for layoffs."

Deepti Desai, former engineer and CEO of Uber and founder of Crstl, a SaaS solutions company, believes that some tech companies drive their growth by how many people they attract. During the outbreak, the idea was that more technology was needed, and this led to new areas of experimentation and employment.

Desai noted that the technology sector is always cyclical. “Technology is dependent on macroeconomic conditions and companies are busy making money. Otherwise they start killing people."

As well as the missing benefits

In addition to dealing with departing employees, employees of crisis-hit companies are enjoying many of the perks that these tech companies attract, which have been removed to save money.

According to the report, Meta cut medical and wellness benefits by $1,000 for each employee, as well as canceled on-site laundry and ended Lyft's $200-a-month payroll program.

Google, which laid off 12,000 employees in January, said it was ending its free home massage service and laying off all of its massage therapists.

Twitter, which gutted Eaton Mook last fall, is removing or cutting a number of perks, including free meals. In a famous rant at the time, Musk asked employees to work hard at the company or leave.

View of the future

While the near-term outlook remains uncertain, Horizon Lab's Mina Alexander is cautiously optimistic that the worst is over. "We might be about to be fired, but you never know."

Alexander's business in the industry is related to blockchain, which has become very popular in recent months due to many companies laying off employees. He believes that no matter what challenges the industry faces, there will be favorable conditions for this technology in the future. "Our company wants to create a sustainable blockchain for enterprises."

Another uncertainty relates to the impact of AI as tools like ChatGPT grow in popularity. While employers are reluctant to accept that AI will lead to job losses, they believe that AI will certainly affect many jobs and that workers will need to adapt.

"In the last 6 to 12 months, there has been significant progress in the field of AI," said Desai, Krstl's deputy. "Some people learn to work with it and accept it. The only permanent change."

Here's how one Bay Area tech expert explains how Google layoffs will affect Silicon Valley