Google cuts 12,000 jobs as layoffs continue in 2023

Google cuts 12,000 jobs as layoffs continue in 2023

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Google’s parent Alphabet on Friday announced plans to cut 12,000 employees, just days after software giant Microsoft announced plans to cut 10,000 employees and Amazon began laying off 18,000 – as fears of a looming recession continue into the New Year.

timeline

January 20thGoogle parent alphabet plans to cut about 12,000 jobs worldwide, CEO Sundar Pichai said, citing the need for “tough decisions” to “fully capitalize” on the tremendous opportunities ahead.

January 19capital one 1,100 tech jobs cut, a source familiar with the matter told Bloomberg – Capital One did not confirm the number of jobs that would be cut, although a spokesman said so forbes that affected employees have been informed that they may apply for other positions within the company.

January 19Student Loan Service Provider net announced it will lay off 350 employees hired over the past six months while cutting another 210 for “performance reasons,” telling insiders the cuts come as President Joe Biden’s student debt relief program continues to falter , after facing legal challenges from conservative groups against the measure.

January 18thMicrosoftThe cuts, which will affect 10,000 employees (less than 5% of the workforce), come three months after the Washington-based company conducted another round of layoffs that affected less than 1% of its roughly 180,000 employees, according to CEO Satya Nadella in a message to employees said some workers will be notified beginning Wednesday and the layoffs will be carried out through the end of the fiscal third quarter in September.

January 18thAmazonone of the country’s largest companies, had outlined a plan to cut more than 18,000 jobs (including jobs cut in November) earlier this month in a note to its workforce from CEO Andy Jassy, ​​on April 18 in an “uncertain economy”. are facing after hiring “quickly” in recent years.

January 18thTeladoc health will cut 6% of its workforce — excluding clinicians — as part of a restructuring plan the company announced in a financial report on Wednesday, as the New York-based telemedicine company seeks to reduce its operating costs amid a “challenging economic environment.”

13th JanuaryLending Club announced it will lay off 225 employees (about 14% of its workforce) at the Securities and Exchange Commission in a “challenging economic environment” as the San Francisco-based company seeks “to realign its operations toward reduced market revenues.” seven rounds of interest rate hikes by the US Federal Reserve in the past year and amid ongoing concerns about a potential recession.

13th JanuaryKrypto.com CEO Kris Marszalek announced that the company, which according to PitchBook employed more than 2,500 people in October, would cut 20% of its workforce in a note to employees as the company faces “continued economic headwinds and unpredictable industry events — including the collapse.” by Sam Bankman-Fried’s cryptocurrency exchange FTX late last year, which “severely damaged confidence in the industry.”

January 12DirectTVThe cuts could affect hundreds of employees, mostly managers, who make up nearly half of the company’s 10,000 employees, sources told CNBC, as the company grapples with a surge in the cost of “backing up and distributing programs” and after the The company lost almost 3% of its subscribers (400,000) in the third quarter of 2022, according to the Leichtman Research Group.

11th JanuaryBlack Rock Officials reportedly told employees that the New York-based company plans to reduce its headcount by 2.5% – the company did not immediately respond to a forbes Request for more details, but in an internal memo from Bloomberg, CEO Larry Fink and President Rob Kapito said the move comes amid “uncertainty all around us” that requires “staying one step ahead of market changes.”

11th JanuaryIn a note to employees flexport CEOs Dave Clark and Ryan Petersen announced plans to cut 20% of the company’s global workforce (estimated to affect 662 of its more than 3,300 employees, according to PitchBook data) and said the supply chain startup was “not immune.” ‘ against a global crisis ‘macroeconomic downturn’.

10. Januarycoin baseone of the largest crypto exchanges in the U.S., announced plans to lay off 25% of its workforce (950 employees) in a company blog post to “ weather crypto market downturns ” after laying off another 18% of its workforce last June .

January 9thGoldman Sachs could lay off up to 3,200 employees in one of the biggest round of job cuts yet in 2023 as the investment banking giant braces for a possible recession, several outlets reported, citing people familiar with the job cuts.

January 9thArtificial intelligence startup scale AI announced plans to shed a fifth of its workforce, CEO Alexandr Wang announced in a blog post, saying the company has grown “rapidly” in recent years but is facing a macroeconomic environment that is “changing dramatically in recent quarters.” have.

January 5thonline clothing company stitch fix will lay off 20% of its employees and close a distribution center in Salt Lake City, founder and interim CEO Katrina Lake announced in an internal memo after the company laid off another 15% of its workforce last June.

January 5thcrypto lenders Genesis trade According to reports, 30% of its staff have been made redundant Wall Street Journalwhich spoke to unnamed sources – the company’s second round of cuts since August, which saw the headcount cut to 145.

January 4thSoftware giant from San Francisco Foreclosure will reduce its headcount by 10%, or 7,900 employees, CEO Marc Benioff announced in an internal letter amid a “challenging” economic climate and as customers take a “more measured approach to their purchasing decisions.”

January 4thonline video platform vimeo announced its second round of cuts in the last six months, affecting 11% of its workforce (roughly 150 of its 1,400 employees, according to PitchBook data), with CEO Anjali Sud attributing the company’s decision to “deteriorating economic conditions”. ”

key background

More than 120 big US companies — including tech startups, big banks, manufacturers and online platforms — conducted large rounds of layoffs last year, cutting nearly 125,000 employees in the process forbes‘Dismissal tracker. The largest came from Facebook and Instagram parent company Meta, which laid off around 11,000 employees in November. The company with the most rounds of cuts was Peloton, which went through four separate rounds of layoffs, including one that affected more than 2,800 workers.

What to look out for

More layoffs at several large US companies, including Google’s parent company Alphabet, which reportedly initiated a program for department heads last November to identify underperforming employees who could be fired, which could target as many as 10,000 employees . Twitter, meanwhile, reportedly shed more than a dozen foreign employees last week, including members of its team overseeing misinformation policy, the latest round of cuts since CEO Elon Musk took over in October. Initial reports suggested Musk could lay off up to 75% of the social media platform’s 7,500 employees, though he dismissed that report, saying the figure was inaccurate. The company began layoffs in November, reportedly affecting 50% of its workforce.

Further reading

According to Forbes Tracker (Forbes), 125,000 employees have been laid off in big cuts as recession fears mounted

Goldman Sachs will reportedly cut more than 3,000 jobs – while major layoffs continue into 2023 (Forbes)

46,000 layoffs in November alone as job cuts ramp up (Forbes)

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