Once again in 2023, a significant number of tech workers have lost their jobs due to layoffs, with major tech companies such as Google, Amazon, Microsoft, Yahoo, and Zoom being among those who have implemented workforce reductions.
Startups across various sectors, from cryptocurrency to enterprise SaaS, have also announced layoffs. The reasoning behind these layoffs is similar across the board, citing the need to achieve profitability amidst a difficult macroeconomic environment.
While monitoring the layoffs can provide insight into which companies are struggling and which are growing, it is also a reminder of the human impact of job loss and how risk profiles may be changing.
A comprehensive list of all known layoffs in the tech industry in 2023 can be found below, which will be updated monthly.
According to data from Layoffs.fyi, as of the end of March, the total number of tech layoffs in 2023 has already surpassed the number from all of 2022, with a running total of 168,243 layoffs based on full months to date.
Indeed
Almost 15% of Indeed.com’s workforce will be cut, which amounts to around 2,200 jobs, as per the announcement by the company. CEO Chris Hyams has stated that the job cuts will be spread across all levels, functions, and regions of the company. He added that the decision was made with great care despite being difficult.
Amazon
Amazon is preparing for another round of layoffs that will impact around 9,000 employees, following its biggest-ever layoff spree. The job cuts will affect various positions across different departments, including its successful cloud computing and advertising businesses.
This decision suggests that Amazon is implementing a cost-saving strategy that extends to all aspects of its operations, with other industry leaders also following suit in cutting expenses. According to Andy, this decision to cut costs and personnel is due to the unpredictable economic conditions.
Credit Suisse
Credit Suisse Group AG was already experiencing difficulties and had been in the process of cutting 9,000 jobs as part of its strategy to reverse its fortunes before being compelled to engage in crisis talks over the weekend.
However, its problems are not yet resolved, as UBS Group has agreed to acquire the struggling bank. It is uncertain how the acquisition, which will result in a combined workforce of almost 125,000 employees, 30% of whom are based in Switzerland, will affect jobs.
Meta
Meta, which is the parent company of Facebook, has declared its intention to lay off approximately 10,000 employees in a new round of job cuts. The majority of the cuts will be announced between April and May, with some extending until the end of the year.
This decision follows the company’s announcement in November 2022 of a cut of over 11,000 jobs, or 13% of its workforce. The restructuring plan includes getting rid of 5,000 planned job openings, discontinuing low-priority projects, and streamlining middle management levels to create a flatter organizational structure.
Airbnb
Airbnb is reducing its recruiting team by 30%, despite its plans to expand this year, which will affect 0.4% of its total workforce.
While several of its technology industry counterparts have scaled back their growth prospects due to rising interest rates and a slowdown in the sector, Airbnb has been among the few that has avoided such extreme measures.
Last year, the company’s CEO, Brian Chesky, stated that the state of the economy would not impact how the business is managed. Furthermore, on the most recent earnings call, Chief Financial Officer Dave Stephenson emphasized that the company still has the capacity to hire.
Citigroup
Citigroup intends to eliminate hundreds of positions across all of its divisions, which will affect less than 1% of its total workforce of 240,000 employees.
Although there are reports that the investment banking division will be affected, the company has not given a general mandate to managers to downsize staff. Workers from the firm’s operations and technology department, as well as its US mortgage-underwriting division, are anticipated to be impacted.
Disney
Disney informed its employees in a memo on March 27 that it plans to carry out three rounds of layoffs, with the first round beginning this week. As announced in February, around 7,000 employees are expected to be affected by these job cuts.
McKinsey
According to reports, McKinsey, the consulting firm, is planning to cut around 2,000 jobs, in one of its largest rounds of layoffs in history. The company’s management team is still finalising the plan, which will mainly affect support staff in non-client-facing roles.
However, the final number of job cuts from its workforce of 45,000 may still change. In recent years, the company has seen a significant increase in its headcount, from 17,000 in 2012 to 28,000 five years ago.
A company representative said that the company is redesigning its non-client-serving teams to better support and scale with the firm.
Yahoo
Yahoo is planning to cut jobs affecting 20% of its total workforce as part of a reorganisation of the company’s ad tech division. More than half of Yahoo’s ad tech employees, or over 1,600 people, will be impacted by the layoffs.
According to Yahoo CEO Jim Lanzone, the decision to cut jobs is not due to financial pressures but is a tactical move to improve the profitability of the company’s advertising business.
In the first week of February, Pinterest Inc. let go of nearly 150 employees, which accounts for less than 5% of its entire workforce. The San Francisco-based company made cuts in several teams, although not all of them were impacted equally.
The move to reduce headcount is part of a broader trend in the tech industry as companies try to trim expenses.
Zoom
According to a blog post on its website, on February 7th, Zoom reduced its workforce by approximately 1,300 employees, which represents 15% of its total workforce.
The company’s CEO, Eric Yuan, stated that the move is necessary to address the ongoing uncertainty in the global economy and its impact on customers as the world adjusts to life after the Covid pandemic.
Although Zoom experienced significant growth during the pandemic, as people relied on video chat software to communicate while working remotely, it now faces the challenge of adapting to changing circumstances.
Accenture
Accenture, a major technology consulting firm, is planning to reduce its workforce by 2.5%, which amounts to around 19,000 jobs. The company has also revised its revenue and profit forecasts downwards. This is part of a trend of large companies cutting costs to adapt to the challenging economic environment.
Microsoft
To reduce costs, Microsoft recently announced plans to lay off 10,000 employees, including a team dedicated to ethical and sustainable AI innovation. On March 27, the company laid off 559 employees from its operations in Bellevue and Redmond.
Conclusion
The impact on the global economy have forced many companies to take difficult decisions to cut costs and restructure their operations. The tech industry has not been immune to these challenges, with many giants like Microsoft, Disney, Airbnb, and Accenture announcing significant layoffs.
While some companies have cited economic uncertainty and the need to adapt to changing market conditions as reasons for these job cuts, others have pointed to strategic changes and a need to focus on core business areas.
As the world continues to grapple with the effects of the pandemic, it remains to be seen how these layoffs will affect the industry and its workforce in the long run.
