As companies that led the 10-year stock bull market adapt to a new reality, they are cutting jobs in tech land.
The most significant round of layoffs ever was announced by Facebook parent Meta. More than 11,000 employees will be affected by Meta's decision to eliminate 13% of its staff.
Meta predicted another drop in revenue in the fourth quarter last month. Digital advertisers are cutting back on spending as rising inflation curbs consumer spending, and apps like Facebook are suffering from Apple's privacy update, which limited ad targeting
The tech industry has seen a lot of layoffs in the next few years. The big ones have been announced.
Meta's disappointing guidance for the fourth quarter wiped out one-fourth of the company's market cap and pushed the stock to its lowest level in more than two years.
The company's Reality Labs division has lost $9.4 billion so far this year due to the CEO's dedication to the metaverse.
During the Pandemic, Meta expanded its headcount by about 60 percent. Competition from rivals such as TikTok has hurt the business.
Those who lose their jobs will receive 16 weeks of pay and two additional weeks for every year of service, according to a letter written by Facebook founder and CEO Mark Zuckerberg. Health insurance will be covered by Meta.
About 700 jobs were cut by the company last week. In a letter to employees, the CEO and the president pointed to rising insurance costs and a possible recession.
10 weeks of pay, healthcare coverage through the end of April, and recruiting assistance were offered to laid off workers. Four weeks of pay will be given to workers who have been there for more than four years.
About 1,100 employees were laid off by online payments giant Stripe.
In a memo to staff, the CEO wrote that the cuts were necessary because of rising inflation, fears of a looming recession, and tighter investment budgets. The beginning of a different economic climate is signaled by these factors.
All departing employees will be paid 14 weeks of severance, while those with longer tenure will get more. Cash equivalent of six months of healthcare premiums will be paid.
The company's internal valuation was lowered to $74 billion in July.
A reduction of around 1,100 people was announced by the company in June.
There is a need to manage costs and grow too quickly during a bull market, according to the CEO of the company.
It has lost 80% of its value this year.
For every year of employment beyond one year, laid off workers received an additional 2 weeks. They were offered four months of mental health support globally and four months of health insurance in the US.
The company laid off 1,000 workers, which is 10% of its global workforce.
The CEO acknowledged in a memo to staff that he had underestimated how long the e-commerce boom would last. The company's stock price is down in the next few years.
If an employee is laid off, they will get 16 weeks of severance pay, plus one week for every year of employment at the company.
The company announced two layoffs. The first subscriber loss in a decade led to the elimination of 150 jobs. There were 300 layoffs in June.
The company said in a statement to employees that they made adjustments so that their costs are growing in line with their slower revenue growth.
The company's stock is down.
The company laid off 20% of its workforce, which equates to over 1000 employees.
The company needs to restructure in order to deal with its financial challenges, according to a memo from the CEO. The company's current year-over-year revenue growth rate for the quarter is below what they were expecting.
The company has lost 80% of its value.
In August, the retail broker cut 23% of its workforce.
The CEO of the company blamed the decline of the macro environment on the 40-year high inflation of theCryptocurrencies.
The stock is down a lot.
About 160 employees were laid off by Chime earlier this month.
A Chime spokesman told CNBC that Chime is cutting 12% of its workforce. The company said that it is still hiring for some positions even though it is eliminating around 160 employees.
Chime was valued at $25 billion by private investors.
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