Microsoft, Intel, Snap, and other businesses have made 45,000 tech job cuts.

As they deal with weak consumer spending, increasing interest rates, and the uncertain state of the global economy, tech businesses have put the brakes on hiring. A Crunchbase News count shows that as of late October, more over 45,000 US software industry employees had already been let go as a result of widespread layoffs this year (2022). Some businesses have declared layoffs, while others have suspended employment. Both large and small IT firms are represented by the names. Many items on the list had unheard-of growth during the epidemic as a result of the surge in online spending. These corporations overhired, according to their CEOs. These large IT corporations have both reduced staff and declared a hiring freeze.

​Seagate
The hard drive manufacturer Seagate Technology revealed this month that it intends to lay off 8%, or approximately 3,000, of its global workforce. It cited economic instability and decreased demand for its parts as reasons for the cuts. According to CEO Dave Mosley, customers are hoarding excess inventory, which is hurting orders and affecting Seagate’s financial results. That required making cutbacks. In order to respond to the current market conditions and increase long-term profitability, he added, “We have taken swift and decisive moves.”

Intel
The chipmaker recently said that Intel Corp. is reducing employment and delaying the construction of new facilities in an effort to save $3 billion in 2019. A smaller PC market has led to a decline in demand for the company’s consumer processors, which has led to the headcount cut. The CHIPS Act, a US government initiative to increase domestic semiconductor manufacture, is poised to provide Intel with billions of dollars in funding at the same time as this slump. According to Bloomberg, the layoffs will have a particularly negative impact on Intel’s sales and marketing teams, affecting about 20% of the workforce.

Microsoft
A Microsoft representative said last month that the business laid off additional employees because it anticipates a decline in revenue due to decreased sales of Windows licences for PCs. A Microsoft representative said, “Like all businesses, we regularly examine our business goals and make structural modifications. In the coming year, he continued, “We will continue to invest in our business and hire in critical growth areas.” Three months ago, Microsoft reported that it had reduced its workforce by less than 1% in July.

Twitter
Twitter has reduced its personnel by about half. Elon Musk, the richest man in the world and the company’s new owner, tweeted on Friday that the site was seeing a “huge loss in revenue” as a result of the advertiser retreat. The action ends a week of tumult and ambiguity over the company’s future. Musk tweeted about the layoffs, saying “Unfortunately there is no choice when the firm is losing over $4M/day,” adding that everyone affected had been given the option of three months’ severance compensation.

Coinbase

Around 1,100 employees, or 18% of its whole workforce, were let go by US-based Coinbase. They were informed of the impending recession, the crypto winter, and their own excessively optimistic growth predictions. “Today, I revealed that I had made the difficult choice to trim our Coinbase team by around 18%. As we approach a potential recession, the general market slump means that we need to be more cost-conscious “said Brian Armstrong, CEO and co-founder of Coinbase.

​Netflix
Netflix, the business that broke the code for television streaming, was an unstoppable growth machine for a while. However, 2022 has been a difficult year for the business. This year, Netflix has experienced two rounds of layoffs. First in May, followed by June. The company has terminated about 500 workers in total.

​Snap
Snap CEO Evan Spiegel said in a statement to staff members at the end of August that the firm would lay off more than 1,000 individuals, or around 20% of its workforce. Spiegel cited dire revenue forecasts and claimed that a significant reorganisation was required to “guarantee Snap’s long-term profitability in any scenario.” Since March 2020, the company has experienced an almost doubling in size. We must now deal with the repercussions of our slower sales growth and adjust to the marketplace, according to Spiegel. For Snap, the writing has been on the wall. After the company’s stock fell by nearly 40% in a single day, it announced that it would freeze hiring.

Shopify
Shopify CEO Tobi Lutke revealed in July that the business would let go of 10% of its workforce, or about 1,000 employees. Shopify gained a lot from the Covid ecommerce boom. Shopify made a lot of hires, much like many other businesses. The decision to place the bet ultimately rested with me, and I erred, Lutke claimed. “We now need to adapt. I apologise sincerely for having to say goodbye to some of you today as a result.

​Lyft
The ride-hailing business Lyft, based in San Francisco, California, announced earlier this month that it would eliminate 13% of its workforce, or roughly 700 workers, as part of its latest cost-cutting measure to address the economy’s decline. The most recent action by Lyft is anticipated to result in a charge in the fourth quarter of between $27 million and $32 million. It comes after a hiring halt in September and 60 job layoffs earlier this year.

Stripe

14% of the 8,000 employees of the fintech behemoth Stripe will be let go, which would affect about 1,120 people. In a memo made public online, Stripe CEO Patrick Collison cited a large recruiting drive as a result of a rise in earnings during the epidemic, an inflation-filled economic slowdown, and other macroeconomic difficulties. We overhired for the environment we’re in, and it hurts us that we can’t give the impacted people the Stripe experience we had planned for, Collison stated.

Opendoor
In a blog post earlier this month, co-founder and CEO Eric Wu of the real estate firm Opendoor stated that the company is laying off around 550 employees, or 18% of its whole workforce, across all functions. “Prior to today, we slashed millions of fixed expenses and reduced third party resourcing, which is how we cut down on our capacity by over 830 roles. We did not choose to reduce the team today lightly; rather, we did so to make sure we could continue to fulfil our objective for years to come,” he stated.