Job cuts in the IT industry are escalating as the firms that led the 10-year stock bull market to adjust to the new setting.
Days after Twitter's new CEO, Elon Musk, reduced in half the number of employees at his company, Facebook parent company Meta announced its largest wave of layoffs in history. Meta said on Wednesday that it would cut off 13% of its staff, or more than 11,000 individuals.
Meta reported declining revenues for the second consecutive quarter last month and expected greater decreases in the fourth quarter because of Apple's iOS privacy security change, limiting ad targeting; digital advertisers are lowering their investment as rising inflation curb consumer spending. Furthermore, applications such as Facebook are suffering.
Due to uncertain economic conditions, the tech sector experienced a wave of layoffs in 2022. Here are the most important ones that have recently been announced.
Meta – Lost 11,000 Staff:
Meta's long-rumored intention to make major layoffs has been confirmed. Mark Zuckerberg acknowledged in a statement that 11,000 jobs, or 10% of the company's workforce, would be cut. Those affected will receive 16 weeks of severance pay plus two additional weeks of income for each year of employment. They will also benefit from increased career and health benefits.
Salesforce – Lost 100+ Staff:
Although the number of jobs terminated at Salesforce is unknown, the company asserts that it was less than a thousand. In a formal statement, the company stated, "Our sales performance process drives responsibility." As a result, some people may leave the organization, and we will assist them in their transition.
Twitter – Lost 37,000 Staff:
Elon Musk just took a week after purchasing Twitter for $44 billion to fire half of the company's staff. Perhaps that shouldn't be a surprise; after all, there were numerous allegations of layoffs in the weeks leading up to the takeover, and Musk isn't exactly known for his sympathies. On Friday, the fate of the Twitter employees was revealed through email. Those who remain employed will no longer be permitted to work remotely and will be obliged to report to the office.
This year has seen one of the largest layoffs in the tech sector.
Microsoft – Lost 1000+ Staff:
A wave of layoffs at Microsoft resulted in the loss of nearly 1,000 positions. Despite being one of the greatest layoffs this year, only a small percentage of Microsoft's 220,000+ employees were affected. The cuts impact the Xbox, Edge, and Devices teams. Microsoft has carried out at least two more layoffs this year, the most recent of which affected 1,800 employees in July.
Next Tech Redundancies:
So far, there are a few notable omissions from the list. Google CEO Sundar Pichai, for example, warned employees to work with "more urgency and desire than we've demonstrated on brighter days." Google has not announced any layoffs, but it has put hiring on hold. If they do not, they risk being added to this list, which would be awful.
With experts forecasting a global recession, IT layoffs will be plentiful in 2022; however, we will still see technology growing in different ways.