In the shadow of Twitter, Big Tech is laying off tens of thousands of employees

In the US, around 50,000 tech workers recently lost their jobs. Image: Shutterstock

Fears of recession, inflationary shock and skyrocketing interest rates are driving tech companies into collapse. They respond with layoffs and hiring freezes. Overview.

11/8/2022, 2:41 p.m11/8/2022, 3:52 p.m

Elon Musk fired roughly half of Twitter’s staff last week and once again dominated the headlines. But in the shadow of the Twitter drama, tech companies big and small are laying off thousands of employees.

As a rule, there is no definite montage like on Twitter. However, there are increasing reports from technology and fintech companies that are hitting the ground of reality: “Robinhood, the hyped stock exchange, has already laid off 30 percent of its people,” writes “Tages-Anzeiger”. Uber rival Lyft announced last week that it would lay off 13 percent, or about 650, of its 5,000 employees. Payment processor Stripe has announced it will cut 1,100 jobs. This list is getting longer every day.

Around 50,000 tech workers have reportedly lost their jobs in the US recently – less than one percent of the nearly six million tech workers. This number is likely to increase in the coming weeks and months – benefiting start-ups that previously had trouble finding good IT specialists due to the dominance of the tech giants.

The following overview shows what is currently happening at Apple, Amazon, Microsoft and Co.

Apple

Rising interest rates are poison to the stock price.  Investors once again have alternatives to technology stocks.  Even Apple feels it.Rising interest rates are poison to the stock price. Investors once again have alternatives to technology stocks. Even Apple feels it.

Apple announced a hiring freeze in October. Hardware and software development is primarily affected, while the research department is not affected. Apple is heavily dependent on the iPhone business. With production at the main plant in China currently affected by Covid restrictions, the Christmas quarter, which is important for Apple, may be weaker than usual.

Apple recently had around 154,000 employees.

Target

Meta shares are down 73 percent this year.

Meta shares are down 73 percent this year.

According to the Wall Street Journal, Facebook’s parent company Meta plans to cut thousands of jobs. The group saw a drop in profits and a drop in sales in the third quarter. Meta is suffering as advertisers cut marketing budgets in a depressed economic climate.

Meta, which includes Facebook, Instagram, WhatsApp and a VR division, has roughly 87,000 employees worldwide.

Amazon

Amazon caused the price drop with a weak sales forecast for the Christmas quarter.

Amazon caused the price drop with a weak sales forecast for the Christmas quarter.

Amazon announced a hiring freeze last week. The shipping and cloud giant is curbing hiring due to a stagnant economy. Hiring is suspended for the following months.

Amazon recently employed around 1.54 million employees worldwide.

Microsoft

Microsoft's cloud business grows more slowly, shares weaken.

Microsoft’s cloud business grows more slowly, shares weaken.

The successful software and cloud group Microsoft also experienced a smaller wave of layoffs in October, affecting hundreds of employees in branches around the world.

At the beginning of October, the head of Microsoft Switzerland, Catrin Hinkel, said in an interview with “Tages-Anzeiger” that they want to hire 100 more employees in Switzerland next year.

Snap

Snap shares are down more than 80 percent this year.

Snap shares are down more than 80 percent this year.

Snap, the American company behind the Snapchat chat app, is laying off a fifth of its employees. More than 1,000 of the more than 6,400 employees have to leave the social media company.

Intel

Bild

The decline in the PC market is hitting Intel hard. In the coming year, the American chip manufacturer therefore wants to reduce costs by 3 billion US dollars. According to a report by Bloomberg, this will mean “significant reductions in the number of employees.” Marketing and sales could lose up to 20 percent of employees.

In 2021, Intel had 121,100 employees.

Tesla

Tesla shares have halved in value over the year.

Tesla shares have halved in value over the year.

A strong dollar and high material and logistics costs are weighing on Tesla shares. Issues with “Full Self-Driving” software, growing competition among electric car providers and, more recently, Musk’s chaotic Twitter takeover are making investors even more nervous.

Tesla will cut 3 to 3.5 percent of its jobs in the coming months. After conflicting reports, company boss Musk made it clear in June. Musk said in a video interview that Tesla built jobs for employees too quickly. Among the employees, approximately every tenth job is to disappear, while the number of factory workers will increase in the long term.

At the beginning of the year, Tesla had almost 100,000 employees.

With material from the SDA press agency.

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