The technology sector’s massive cost-cutting mission doesn’t seem to be slowing down anytime soon.
Once upon a time, high-flying companies, with unprecedented valuations and growth-at-all-cost strategies, began scaling back as the economy appears to be heading for a slowdown. The efforts, which began in May, have resulted in massive layoffs at various companies, from startups to publicly traded companies worth billions of dollars.
The layoffs in the sector happen for various reasons. But it’s clear that the market is in a very different place than it was in 2021, when deal closings happened at a rapid pace and investors were the first to jump into funding rounds with skyrocketing valuations. For example, several venture capitalists and private equity firms have warned their portfolio companies to conserve cash and look for ways to cut costs. This often comes in the form of hiring freezes or job cuts.
londonbusinessblog.com compiles a running list of tech companies that have recently announced layoffs:
Oracle appears to be the last of the tech companies to announce widespread layoffs. The information reported the company has laid off an unspecified number of US workers, with plans in the coming months to lay off some in Canada, India and parts of Europe, which would amount to “thousands.” A spokesperson did not immediately respond to londonbusinessblog.com‘s request for comment. However, several LinkedIn users, who listed their jobs as Oracle, took to the social media platform to share that they were part of the layoffs and were looking for new work.
In July, Shopify laid off about 10% of its staff, or about 1,000 employees. CEO Tobi Lütke told employees at the time that he overestimated how long the e-commerce pandemic would last, expecting the adaptation of online shopping to be permanently ahead by 5 to 10 years.
Netflix laid off 300 employees in June after the company reported losing subscribers for the first time in more than a decade and slowing revenue growth. Netflix, in an effort to remedy the decline, said it would roll out an ad-supported tier to attract more subscribers.
Coinbase told employees in June that the cryptocurrency exchange cut its workforce by about 18% ahead of the economic downturn. “While it’s hard to predict the economy or the markets, we always plan for the worst so we can run the business in any environment,” CEO Brian Armstrong told employees.
Lyft cut about 60 jobs in its rental division in July in an effort to reorganize the company against rising costs. The company also said it would discontinue its service where it leased its cars on a long-term basis.