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Tuesday, March 21, 2023

Companies that have cut jobs this year

Meta Platforms CEO Mark Zuckerberg speaks at Georgetown University in Washington on October 17, 2019.

Andrew Caballero-Reynolds | AFP | fake images

Job cuts in the tech sector are piling up, as companies that led the 10-year bull market adjust to a new reality.

Days after from twitter New boss Elon Musk cut half the workforce at his company, parent of Facebook Goal announced its largest round of layoffs. Meta said Wednesday that he will cut 13% of his workforce, which adds up to more than 11,000 employees.

Last month, Meta announced a second straight quarter of revenue decline and forecast another drop in the fourth quarter. Digital advertisers are cutting back as rising inflation curbs consumer spending, and apps like Facebook are suffering. of Apple iOS privacy update, which limited ad targeting.

The tech industry in general has seen a number of layoffs in 2022 in the face of uncertain economic conditions. Here are the big ones that have been recently announced.

Goal: about 11,000 jobs cut

GoalThe disappointing guidance for the fourth quarter wiped out a quarter of the company’s market capitalization and pushed the stock to its lowest level since 2016.

The company’s Reality Labs division has lost $9.4 billion so far this year due to CEO Mark Zuckerberg’s commitment to the metaverse.

Meta is downsizing after expanding the workforce by about 60% during the pandemic. The business has been hit by competition from rivals like TikTok, a widespread slowdown in online ad spending and the challenges of Apple’s iOS changes.

In a letter to employees, Zuckerberg said those who lose their jobs will receive 16 weeks of pay plus an additional two weeks for each year of service. Meta will cover health insurance for six months.

Twitter: about 3,700 jobs cut

Lyft: around 700 jobs eliminated

lyft announced last week that it would cut 13% of its staff, or about 700 jobs. In a letter to employees, CEO Logan Green and Chairman John Zimmer noted “a likely recession sometime next year” and rising ride-sharing insurance costs.

For the laid-off workers, the trucking company promised 10 weeks of pay, health care coverage through the end of April, accelerated stock vesting by the Nov. 20 vesting date, and recruiting assistance. Workers who have been there for more than four years will receive an additional four weeks of pay, they added.

Stripe: around 1,100 jobs eliminated

Online payment giant Stripe laid off roughly 14% of its staff, which equates to about 1,100 employees last week.

Chief Executive Officer Patrick Collison wrote in a memo to staff that the cuts were necessary amid rising inflation, fears of an impending recession, higher interest rates, energy crises, tighter investment budgets and scarcer start-up funding. Taken together, these factors signal “that 2022 represents the beginning of a different economic climate,” he said.

Stripe said it will pay 14 weeks of severance pay for all employees who leave, and more for those with longer tenures. He will also pay the cash equivalent of six months of existing health care premiums or continued health care.

Stripe was valued at $95 billion last year and reportedly lowered its internal valuation to $74 billion in July.

Coinbase: around 1,100 jobs cut

In June, Coinbase announced that it eliminated 18% of full-time jobs, resulting in a reduction of around 1,100 people.

base of coins CEO Brian Armstrong pointed to a possible recession, the need to manage costs and grow “too fast” during a bull market.

Coinbase, which made its stock market debut, has lost more than 80% of its value this year, sinking along with cryptocurrencies.

Those laid off received a minimum of 14 weeks severance pay plus an additional 2 weeks for each year of employment beyond one year. They were also offered four months of COBRA health insurance in the US and four months of mental health support globally, according to the company’s announcement.

Shopify: around 1,000 jobs eliminated

In July, Shopify announced that it laid off 1,000 workers, which is equivalent to 10% of its global employees.

In a memo to staff, CEO Tobi Lutke acknowledged he had miscalculated how long the pandemic-driven e-commerce boom would last and said the company is taking a hit from a broader pullback in online spending. The company’s share price is down 78% in 2022.

Shopify Such employees who are terminated will receive 16 weeks of severance pay, plus one week for each year they remain with the company.

Netflix: about 450 jobs cut

Netflix announced two rounds of layoffs. In May, the streaming service cut 150 jobs after Netflix reported its first subscriber loss in a decade. At the end of June, Netflix announced another 300 layoffs.

In a statement to employees, the company said: “While we continue to invest significantly in the business, we have made these adjustments so that our costs grow in line with our slower revenue growth.”

Netflix shares are down 58% this year.

Microsoft: Fewer than 1,000 job cuts reported

Snap: more than 1,000 jobs cut

In late August, Snap announced that it had laid off 20% of its workforce, which equates to more than 1,000 employees.

Nap CEO Evan Spiegel told employees in a memo that the company needs to restructure its business to meet its financial challenges. He said the company’s current year-over-year revenue growth rate for the quarter of 8% “is well below what we expected earlier this year.”

Snap has lost 80% of its value this year.

Robinhood: 31% of its workforce

Retail brokerage firm Robinhood cut 23% of its staff in August, after cutting 9% of its workforce in April.

Robin Hood CEO Vlad Tenev blamed the “deteriorating macro environment, with inflation at 40-year highs accompanied by a broad crypto market decline.”

The stock has more than halved in 2022.

Chime: about 160 jobs cut

Earlier this month, fintech company Chime laid off 12% of its workforce, or about 160 employees.

A spokesperson for Chime told CNBC that the so-called challenger bank, a fintech company that exclusively offers banking services through websites and smartphone apps, is cutting 12% of its 1,300-person workforce. The company said that while it is cutting approximately 160 employees, it is still hiring for select positions and remains “very well capitalized.”

Private investors valued Chime at $25 billion just over a year ago.

Tesla: 10% cut of salaried employees

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