Alphabet, the parent company of Google, plans to cut staff by more than 6% – about 12,000 employees – adding to the growing trend in the technology sector around the world of layoffs.
And in 2022, it was announced The technology sector reported 97,171 job cutsup 649% from the previous year, according to the consulting firm Gray & Christmas Inc.
During January, the three technology companies Amazon, Microsoft, and the parent company of Google added about 30,000 jobs to the total number laid off in 2022 in the sector.
This comes as big tech companies benefited from the boom in spending on e-commerce and remote work that kicked off during the COVID-19 pandemic lockdowns in 2020.
After 3 years, many of these companies are reporting disappointing growth rates, dealing with lower share prices and normal customer behavior.
The company's leaders said they expanded so quickly that Alphabet CEO Sundar Pichai wrote that he 'takes full responsibility for the decisions that led to this stage,' in an email to employees on Friday.
Here is a long list of companies that plan to lay off employees:
The company revealed its plan to lay off 6% of its employees, which represents about 12,000 employees in many roles in the company.
In October, the company reported third-quarter earnings and revenue that missed analysts' expectations, with profits down 27% from a year earlier. Investors are also beginning to pressure the search giant into adopting a more aggressive strategy to reduce spending. Asset management company TCI Fund Management Ltd urged Alphabet to set a target for profit margins, increase share buybacks and reduce losses in its portfolio, noting that the number of Alphabet employees has grown by 20% annually since 2017.
CEO Andy Jassy announced on January 4 that the e-commerce giant will be laying off 18,000 employees.
'Amazon has navigated difficult and uncertain economics in the past, and we will continue to do so,' Jassy said. 'These changes will help us pursue our long-term opportunities with a stronger cost structure.'
And in November, Amazon stopped 'new staggered' hiring.
Cryptocurrency platform Blockchain.com laid off 28% of its workforce, about 110 employees, in the latest round of layoffs, announced in early January.
In turn, Capital One Financial Corp. eliminated hundreds of technology jobs last week, with more than 1,100 workers affected.
US cryptocurrency exchange Coinbase Global also announced the layoffs of 60 of its employees as the cryptocurrency market plunged. This comes after it revealed in June that it would lay off 18% of its workforce, or approximately 1,200 employees.
ConsenSys, the software company behind the cryptocurrency Ethereum, confirmed that it has cut 96 positions, representing 11% of the crypto company's total workforce.
And Crypto.com announced that it plans to cut about 20% of its global workforce on January 13th. Chris Marsalek, the company's chief executive, said the cuts would help 'put the company on a path to long-term success'.
Genesis Global Trading Inc. It laid off 60 employees in the latest round of job cuts, or about 30% of the crypto brokerage's workforce. The company now has 145 employees remaining.
Cryptocurrency exchange Huobi announced this month that it would cut 20% of its 1,100 employees.
Microsoft said it will cut 10,000 jobs this year, or about 5% of its workforce, saving about $1.2 billion in costs in the fiscal second quarter. CEO Satya Nadella said in a blog post and internal email to employees on Jan. 18 that the company will continue to hire in 'key strategic areas.'
Nadella, who was speaking at the World Economic Forum in Davos, Switzerland, stressed that the tech industry needs to adapt to the broader economic slowdown.
In turn, Salesforce will cut about 10% of its workforce and reduce its real estate holdings, according to a January 4 regulatory filing. 'We've hired too many people' during the pandemic, CEO Marc Benioff said in a letter to employees.
Silvergate Capital Corp., a crypto bank, said in January that it would lay off 40% of its employees after clients withdrew $8.1 billion worth of digital assets during the fourth quarter.
Twitter's turmoil has more to do with the latest acquisition – and attendant debt – than economic concerns. But the company has suffered some of the deepest downgrades from its peers at the moment. After Elon Musk, who bought Twitter for $44 billion, cut some 3,700 email jobs in November, the cuts continued into January, particularly those working on global content moderation.