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16 Nov 2022

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Giant Tech Companies that Announce Layoffs in 2022

Layoffs have been increasingly common among technology companies as economic conditions have remained uncertain.

This effect has caused tech companies to react to new realities. A day after Twitter's launch, new boss Elon Musk slashed half of the company's workforce.

According to Facebook parent Meta, the company has announced eliminating 13% of its workforce, which makes up more than 11,000 employees. Here are five of the most recent high-profile layoffs.

Tesla: Cutt off Ten percent of Tesla's salaried staff

In June, Elon Musk, the CEO of Tesla, emailed every employee informing them that Tesla would be cutting 10% of the salaries of all salaried workers.

"Tesla will be reducing salaried headcount by 10% as we have become overstaffed in many areas," Musk wrote. "Note this does not apply to anyone building cars, battery packs, or installing solar. Hourly headcount will increase."

Meta: Eliminated 11,000 Jobs

A broad slowdown in online ad spending, increased competition from rivals such as TikTok, and Apple's changes to iOS have caused Meta to rightsize after expanding its headcount by about 60% during the pandemic.

According to a letter from Zuckerberg to employees, the company will cover six months of health insurance for those who lose their jobs. Losers will receive 16 weeks of pay plus two weeks for every year of service.

Twitter: Approximately 3,700 jobs cut

In a recent post, Elon Musk wrote that there was no choice but to lay off employees and that three months' salary was offered.

The layoff resulted in the company losing over $4 million daily. The last time Twitter reported earnings, revenue was 1% lower than it was one year ago.

Microsoft: less than 1,000 job cuts

An Axios report said that Microsoft had let go less than one percent of employees in October. The layoffs impacted less than 1,000 people. According to Microsoft, revenue growth in the third quarter of this year was the slowest in over five years.

Coinbase: Approximately 1,100 jobs cut

Earlier this month, Coinbase announced they would be laying off 18% of its workforce, equivalent to 1,100 employees.

During a bull market, Brian Armstrong pointed to a possible recession, a need to manage costs and Coinbase's rapid growth.

Soaring this year alongside the price of a cryptocurrency, which held its stock market debut, has plummeted by over 80% in the past year.

A minimum of 14 weeks of severance was paid out to those laid off, plus an additional two weeks for each year beyond the first year of employment. In addition, the company offered four months of COBRA health insurance in the U.S. and four months of mental health support globally.

Netflix: Approximately 450 Jobs Cut

Netflix eliminated 150 jobs in May following the streaming service's first lost decade in the number of subscribers. In June, Netflix laid off 300 more employees.

The company said to employees, "While we continue to invest significantly in the business, we made these adjustments so that our costs are growing in line with our slower revenue growth."

Also Read: Digital Cloud Spending Is Rising, Hitting $57 Billion for Q3 as Google Steadily Improves Its Market Share

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