Meta has started another round of layoffs amid the company’s “year of efficiency.” The latest job cuts are the third round of a series of cuts first announced in March. The company said it expected to shed a total of 10,000 jobs over the course of three rounds.
It’s unclear exactly how many workers are impacted by the latest round, but the layoffs, once again, seem to be primarily in non-engineering roles. People in marketing, communications, and recruiting have lost their jobs, according toReuters, which cited posts on LinkedIn. Meta will also be slashing nearly 500 jobs from its Irish office, about 20 percent of its workforce in the country, according to a separate report.
Meta declined to comment on the cuts. A spokesperson pointed to a memo Mark Zuckerberg shared with employees last fall when the company conducted an earlier round of 11,000 layoffs. In the message, he said that economic conditions had “caused our revenue to be much lower” than expected. He described the job cuts as “some of the most difficult changes we’ve made in Meta’s history” and “what we need going forward.”
Zuckerberg has talked openly about the need for more “efficiency” in the months since. He dubbed 2023 as Meta’s “year of efficiency,” and said he wants to create a “flatter” management structure at the company. “I continue to believe that slowing hiring, flattening our management structure, increasing the percent of our company that is technical and more rigorously prioritizing projects will improve the speed and quality of our work,” he said during the company’s most recent earnings call.
The conclusion of the latest round of layoffs brings the total number of workers Meta has cut to about 21,000 since last November. Though Meta’s layoffs have been among the highest in the industry, it’s far from the only tech company shedding jobs over the last several months. Amazon, Google, Microsoft and dozens of others have dramatically shrunk their workforce since the start of the year.
This article originally appeared on Engadget at https://www.engadget.com/meta-is-laying-off-employees-for-the-third-time-in-less-than-three-months-174112198.html?src=rss
The tech industry has been reeling from the combination of a rough economy, the COVID-19 pandemic and some obvious business missteps. And while that led to job cuts in 2022, the headcount reductions unfortunately ramped up in 2023 and so far, seem to be accelerating in 2024. It can be tough to keep track of these moves, so we’ve compiled all the major layoffs in one place and will continue to update this story as the situation evolves.
February 2024
DocuSign layoffs
DocuSign slashed its headcount by six percent. Staff in the sales and marketing departments were most heavily affected. Bloomberg notes that the company had 7,336 employees at the end of 2023.
Snap layoffs
Snap is once again reducing its headcount, this time by another 10 percent, or some 540 workers. The company claimed the layoffs were required to “reduce hierarchy and promote in-person collaboration.”
Networking giant Cisco announced it would be laying off thousands of employees as part of a larger restructuring effort. The company had a total employee count of 84,900 before these cuts.
January 2024
Duolingo layoffs
Duolingo cut 10 percent of its contractors, and said that it is instead able to use generative AI to accomplish some of the tasks that its human workers used to perform.
Unity layoffs
Unity laid off 1,800 people, or a quarter of its workforce. This is in addition to more than 1,110 other layoffs at the company over the past two years.
In another round of belt tightening, Google has reportedly laid off hundreds of workers in its Assistant and hardware divisions, among other departments. Alongside the cuts, Google is said to have reorganized its Pixel, Nest and Fitbit divisions, which led to Fitbit's co-founders departing the company. Just days later, Google laid off hundreds of workers in its ads business. CEO Sundar Pichai later said in an internal memo that even more cuts would be coming throughout the year, while parent company Alphabet cut dozens of jobs from its X moonshot lab.
E-commerce giant eBay is reducing its workforce by around 1,000 roles, or roughly 9 percent of its full-time employees. The company also plans to scale back the number of contractors over the coming months.
Block reportedly laid off around 1,000 workers, with the Cash App and Square teams among those most heavily affected. CEO Jack Dorsey told staff that Block was becoming a leaner company.
PayPal layoffs
PayPal cut nine percent of its workforce — approximately 2,500 employees — despite reporting strong revenue growth in 2023.
The tech industry is reeling from the combination of a rough economy, the COVID-19 pandemic and some obvious business missteps. And while that led to job cuts in 2022, the headcount reductions have unfortunately ramped up in 2023. It can be tough to keep track of these moves, so we’ve compiled all the major layoffs in one place and will continue to update this story as the situation evolves.
November
Ubisoft Montreal layoffs
In early November, Ubisoft laid off 98 people from its Montreal office, considered the home of the company's biggest in-house development team. The majority of those who lost their jobs were in business administration and IT. Overall, the company said in its latest quarterly earnings report that it had cut about 1,000 jobs over the last 12 months, including layoffs and not replacing employees who left voluntarily.
Cruise
Cruise, General Motors' driverless car subsidiary, reportedly told employees in November that it plans to lay off some employees. The news came the same week that GM recalled Cruise's entire fleet of 950 robotaxis following a pedestrian collision. Cruise has not yet said who or how many people will lose their jobs.
In its second round of layoffs this year, LinkedIn said it is letting go around 668 workers from across its engineering, product, talent and finance teams. In May, LinkedIn said it would lay off 716 people and close its job search app in China. Between the two rounds of layoffs, LinkedIn will have cut nearly 1,400 jobs in 2023.
September
ASSOCIATED PRESS
Epic Games layoffs
Epic Games laid off 16 percent of its employees, or about 830 employees. In an open letter to employees, CEO Tim Sweeney said the company was spending "way more money" than it earns, and that "we concluded that layoffs are the only way." Previously, the company had attempted to reduce costs by freezing hiring and cutting its marketing spending.
Roku layoffs
Roku's second round of 2023 layoffs is seeing another 300 people leaving the company, on top of 200 it let go in March and another 200 folks it dismissed in late 2022. Roku is once again looking to reduce costs and, along with lowering its headcount, it's trying to do that by axing shows and movies from its platform, consolidating office space and spending less on outside services.
July
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Google layoffs
Google drew attention in July when is contracting partner Accenture laid off 80 Help subcontractors who voted to form the Alphabet Workers Union-CWA the month before. Accenture attributed the move to cost-cutting. While the company said it respected the subcontractors' right to join a union, the former teams accused Google of retaliating against labor organizers.
CD Projekt Red layoffs
The creator of Cyberpunk 2077 isn't immune to business challenges. CD Projekt Red warned in July that it would lay off about 100 people over the next several months, or about nine percent of the workforce. Employees will be let go as late as the first quarter of 2024. CEO Adam Kiciński was frank about the reasoning: CDPR was "overstaffed" for a reorganization meant to better handle the game developer's widening product roadmap, which includes new Cyberpunk and Witcher titles.
June
Dado Ruvic / reuters
Spotify layoffs
Spotify followed up its January layoff plans with word in June that it would cut 200 jobs in its podcast unit. The move is part of a more targeted approach to fostering podcasts with optimized resources for creators and shows. The company is also combining its Gimlet and Parcast production teams into a renewed Spotify Studios division.
GrubHub layoffs
GrubHub has faced intense pressure from both the economy and competitors like Uber, and that led it to lay off 15 percent of its workforce in June, or roughly 400 staff. This came just weeks after outgoing CEO Adam DeWitt officially left the food delivery service. New chief executive Howard Migdal claims the job cuts will help the company remain "competitive."
Embracer Group layoffs
Game publishing giant Embracer Group announced plans for layoffs in June as part of a major restructuring effort meant to cut costs. The company didn't say how many of its 17,000 employees would be effected, but expected the overhaul to continue through March. The news came soon after Embracer revealed that it lost a $2 billion deal with an unnamed partner despite a verbal agreement.
Sonos layoffs
Sonos has struggled to turn a profit as of late, and it's cutting costs to get back on track. The company said in June that it would lay off 7 percent of staff, or roughly 130 jobs. It also planned to offload real estate and rethink program spending. CEO Patrick Spence said there were "continued headwinds" that included shrinking sales.
Plex layoffs
Plex may be many users' go-to app for streaming both local and online media, but that hasn't helped its fortunes. The company laid off roughly 20 percent of employees in June, or 37 people. The cuts affect all areas. Plex is reportedly feeling the blow from an ad market slowdown, and is eager to cut costs and turn a profit.
May
REUTERS/Chris Wattie
Shopify layoffs
Shopify's e-commerce platform played an important role at the height of the pandemic, but the Canadian company is scaling back now that the rush is over. In May, the company laid off 20 percent of its workforce and sold its logistics business to Flexport. Founder Tobi Lütke characterized the job cuts as necessary to "pay unshared attention" to Shopify's core mission, and an acknowledgment that the firm needed to be more efficient now that the "stable economic boom times" were over.
Polestar layoffs
Polestar delayed production of its first electric SUV (the Polestar 3) in May, and that had repercussions for its workforce. The Volvo spinoff brand said in May that it would cut 10 percent of its workforce to lower costs as it faced reduced manufacturing expectations and a rough economy. Volvo needed more time for software development and testing that also pushed back the EX90, Polestar said.
SoundCloud layoffs
SoundCloud followed up last year's extensive layoffs with more this May. The streaming audio service said it would shed 8 percent of its staff in a bid to become profitable in 2023. Billboard sources claim the company hopes to be profitable by the fourth quarter of the year.
April
Dado Ruvic / reuters
Lyft layoffs
Lyft laid off 13 percent of staff in November 2022, but took further steps in April. The ridesharing company said it was laying off 1,072 workers, or about 26 percent of its headcount. It comes just weeks after an executive shuffle that replaced CEO Logan Green with former Amazon exec David Risher, who said the company needed to streamline its business and refocus on drivers and passengers. Green previously said Lyft needed to boost its spending to compete with Uber.
Dropbox layoffs
Cloud storage companies aren't immune to the current financial climate. In April, Dropbox said it would lay off 500 employees, or roughly 16 percent of its team. Co-founder Drew Houston pinned the cuts on the combination of a rough economy, a maturing business and the "urgency" to hop on the growing interest in AI. While the company is profitable, its growth is slowing and some investments are "no longer sustainable," Houston said.
March
Roku layoffs
Roku shed 200 jobs at the end of 2022, but it wasn't done. The streaming platform creator laid off another 200 employees in March 2023. As before, the company argued that it needed to curb growing expenses and concentrate on those projects that would have the most impact. Roku has been struggling with the one-two combination of a rough economy and the end of a pandemic-fueled boom in streaming video.
Lucid Motors layoffs
If you thought luxury EV makers would be particularly susceptible to economic turmoil, you guessed correctly. Lucid Motors said in March that it would lay off 18 percent of its workforce, or about 1,300 people. The marque is still falling short of production targets, and these cuts reportedly help deal with "evolving business needs and productivity improvements." The cuts are across the board, too, and include both executives as well as contractors.
Meta (Facebook) layoffs
Meta slashed 11,000 jobs in fall 2022, but it wasn't finished. In March 2023, the company unveiled plans to lay off another 10,000 workers in a further bid to cut costs. The first layoffs affected its recruiting team, but it shrank its technology teams in late April and its business groups in late May. The Facebook owner is hoping to streamline its operations by reducing management layers and asking some leaders to take on work previously reserved for the rank and file. It may take a while before Meta's staff count grows again — it doesn't expect to lift a hiring freeze until sometime after it completes its restructuring effort in late 2023.
February
Rivian layoffs
Rivian conducted layoffs in 2022, but that wasn't enough to help the fledgling EV brand's bottom line. The company laid off another six percent of its employees in February, or about 840 workers. It's still fighting to achieve profitability, and the production shortfall from supply chain issues hasn't helped matters. CEO RJ Scaringe says the job cuts will help Rivian focus on the "highest impact" aspects of its business.
Zoom layoffs
Zoom was a staple of remote work culture at the pandemic's peak, so it's no surprise that the company is cutting back now that people are returning to offices. The video calling firm said in February it was laying off roughly 1,300 employees, or 15 percent of its personnel. As CEO Eric Yuan put it, the company didn't hire "sustainably" as it dealt with its sudden success. The layoffs are reportedly necessary to help survive a difficult economy. The management team is offering more than just apologies, too. Yuan is cutting his salary by 98 percent for the next fiscal year, while all other executives are losing 20 percent of their base salaries as well as their fiscal 2023 bonuses.
Yahoo layoffs
Engadget's parent company Yahoo isn't immune to layoffs. The internet brand said in February that it would lay off over 20 percent of its workforce throughout 2023, or more than 1,600 people. Most of those cuts, or about 1,000 positions, took place immediately. CEO Jim Lanzone didn't blame the layoffs on economic conditions, however. He instead pitched it as a restructuring of the advertising technology unit as it shed an unprofitable business in favor of a successful one. Effectively, Yahoo is bowing out of direct competition in with Google and Meta in the ad market.
Dell layoffs
The pandemic recovery and a grim economy have hit PC makers particularly hard, and Dell is feeling the pain more than most. It laid off five percent of its workforce in early February, or about 6,650 employees, after a brutal fourth quarter where computer shipments plunged an estimated 37 percent. Past cost-cutting efforts weren't enough, Dell said — the layoffs and a streamlined organization were reportedly needed to get back on track.
Deliveroo layoffs
Food delivery services flourished while COVID-19 kept people away from restaurants, and at least some are feeling the sting now that people are willing to dine out again. Deliveroo is laying off about 350 workers, or nine percent of its workforce. "Redeployments" will bring this closer to 300, according to founder Will Shu. The justification is familiar: Deliveroo hired rapidly to handle "unprecedented" pandemic-related growth, according to Shu, but reportedly has to cut costs as it deals with a troublesome economy.
DocuSign layoffs
DocuSign may be familiar to many people who've signed documents online, but that hasn't spared it from the impact of a harsh economic climate. The company said in mid-February that it was laying off 10 percent of its workforce. While it didn't disclose how many people that represented, the company had 7,461 employees at the start of 2022. Most of those losing their jobs work in DocuSign's worldwide field organization.
GitLab layoffs
You may not know GitLab, but its DevOps (development and operations) platform underpins work at tech brands like NVIDIA and T-Mobile — and shrinking business at its clients is affecting its bottom line. GitLab is laying off seven percent of employees, or roughly 114 people. Company chief Sid Sijbrandij said the problematic economy meant customers were taking a "more conservative approach" to software investment, and that his company's previous attempts to refocus spending weren't enough to counter these challenges.
GoDaddy layoffs
GoDaddy conducted layoffs early in the pandemic, when it cut over 800 workers for its retail-oriented Social platform. In February this year, however, it took broader action. The web service provider laid off eight percent of its workforce, or more than 500 people, across all divisions. Chief Aman Bhutani claimed other forms of cost-cutting hadn't been enough to help the company navigate an "uncertain" economy, and that this reflected efforts to further integrate acquisitions like Main Street Hub.
Twilio layoffs
Twilio eliminated over 800 jobs in September 2022, but it made deeper cuts as 2023 got started. The cloud communications brand laid off 17 percent of staff, or roughly 1,500 people, in mid-February. Like so many other tech firms, Twillio said that past cost reduction efforts weren't enough to endure an unforgiving environment. It also rationalized the layoffs as necessary for a streamlined organization.
January
REUTERS/Peter DaSilva
Google (Alphabet) layoffs
Google's parent company Alphabet has been cutting costs for a while, including shutting down Stadia, but it took those efforts one step further in late January when it said it would lay off 12,000 employees. CEO Sundar Pichai wasn't shy about the reasoning: Alphabet had been hiring for a "different economic reality," and was restructuring to focus on the internet giant's most important businesses. The decision hit the company's Area 120 incubator particularly hard, with the majority of the unit's workers losing their jobs. Sub-brands like Intrinsic (robotics) and Verily (health) also shed significant portions of their workforce in the days before the mass layoffs. Waymo has conducted two rounds of layoffs that shed 209 people, or eight percent of its force.
Amazon layoffs
Amazon had already outlined layoff plans last fall, but expanded those cuts in early January when it said it would eliminate 18,000 jobs, most of them coming from retail and recruiting teams. It added another 9,000 people to the layoffs in March, and in April said over 100 gaming employees were leaving. To no one's surprise, CEO Andy Jassy blamed both an "uncertain economy" and rapid hiring in recent years. Amazon benefited tremendously from the pandemic as people shifted to online shopping, but its growth is slowing as people return to in-person stores.
Coinbase layoffs
Coinbase was one of the larger companies impacted by the crypto market's 2022 downturn, and that carried over into the new year. The cryptocurrency exchange laid off 950 people in mid-January, just months after it slashed 1,100 roles. This is one of the steepest proportionate cuts among larger tech brands — Coinbase offloaded about a fifth of its staff. Chief Brian Armstrong said his outfit needed the layoffs to shrink operating expenses and survive what he previously described as a "crypto winter," but that also meant canceling some projects that were less likely to succeed.
IBM layoffs
Layoffs sometimes stem more from corporate strategy shifts than financial hardship, and IBM provided a classic example of this in 2023. The computing pioneer axed 3,900 jobs in late January after offloading both its AI-driven Watson Health business and its infrastructure management division (now Kyndryl) in the fall. Simply put, those employees had nothing to work on as IBM pivoted toward cloud computing.
Microsoft layoffs
Microsoft started its second-largest wave of layoffs in company history when it signaled it would cut 10,000 jobs between mid-January and the end of March. Like many other tech heavyweights, it was trimming costs as customers scaled back their spending (particularly on Windows and devices) during the pandemic recovery. The reductions were especially painful for some divisions — they reportedly gutted the HoloLens and mixed reality teams, while 343 Industries is believed to be rebooting Halo development after losing dozens of workers. GitHub is cutting 10 percent of its team, or roughly 300 people.
PayPal layoffs
PayPal has been one of the healthier large tech companies, having beaten expectations in its third quarter last year. Still, it hasn't been immune to a tough economy. The online payment firm unveiled plans at the end of January to lay off 2,000 employees, or seven percent of its total worker base. CEO Dan Schulman claimed the downsizing would keep costs in check and help PayPal focus on "core strategic priorities."
Salesforce layoffs
Salesforce set the tone for 2023 when it warned it would lay off 8,000 employees, or about 10 percent of its workforce, just four days into the new year. While the cloud software brand thrived during the pandemic with rapidly growing revenue, it admitted that it hired too aggressively during the boom and couldn't maintain that staffing level while the economy was in decline.
SAP layoffs
Business software powerhouse SAP saw a steep 68 percent drop in profit at the end of 2022, and it started 2023 by laying off 2,800 staff to keep its business healthy. Unlike some big names in tech, though, SAP didn't blame excessive pandemic-era hiring for the cutback. Instead, it characterized the initiative as a "targeted restructuring" for a company that still expected accelerating growth in 2023.
Spotify layoffs
Spotify spent aggressively in recent years as it expanded its podcast empire, but it quickly put a stop to that practice as 2023 began. The streaming music service said in late January that it would lay off 6 percent of its workforce (9,800 people worked at Spotify as of the third quarter) alongside a restructuring effort that included the departure of content chief Dawn Ostroff. While there were more Premium subscribers than ever in 2022, the company also suffered steep losses — CEO Daniel Ek said he was "too ambitious" investing before the revenue existed to support it.
Wayfair layoffs
Amazon isn't the only major online retailer scaling back in 2023. Wayfair said in late January that it would lay off 1,750 team members, or 10 percent of its global headcount. About 1,200 of those were corporate staff cut in a bid to "eliminate management layers" and otherwise help the company become leaner and nimbler. Wayfair had been cutting costs since August 2022 (including 870 positions), but saw the layoffs as helping it reach break-even earnings sooner than expected.
This article originally appeared on Engadget at https://www.engadget.com/big-tech-layoffs-2023-152856197.html?src=rss
PayPal is about to become the latest tech company to lay off a substantial part of its workforce. The payments firm announced Tuesday plans to cut approximately 2,000 employees, a number that equates to about seven percent of its total staff. According to PayPal president and CEO Dan Schulman, the layoffs will occur over the next few weeks, with some parts of the company affected more than others.
“We will treat our departing colleagues with the utmost respect and empathy, provide them with generous packages, engage in consultation where required and support them with their transitions,” Schulman said. “I want to express my personal appreciation for the meaningful contributions they have made to PayPal.”
The company joins a growing list of tech companies that have announced layoffs in recent months. Earlier this month, Google disclosed plans to lay off 12,000 employees, or about around six percent of its global workforce. Before that, Microsoft said it would cut 10,000 jobs. Schulman, like his counterparts at Microsoft, Google and other tech firms, blamed PayPal's layoffs on the “challenging macro-economic environment” the company finds itself in recently. “While we have made substantial progress in right-sizing our cost structure, and focused our resources on our core strategic priorities, we have more work to do,” he said.
It’s worth noting the US economy has not entered into a recession yet. At 3.5 percent, the national unemployment rate is at a 50-year low, and the gross domestic product grew over the last quarters. Turning specifically to PayPal, the company beat Wall Street expectations during its most recent earnings call, with revenue and income increasing by 11 percent and 7 percent year on year, respectively.