Major companies in various sectors are laying off workers at a staggering rate, calling into question the state of the economy.
Among the latest announcements is Microsoft, which said Wednesday that the company plans to cut 10,000 employees after Microsoft shares fell more than 20% in the past 12 months.
An even bigger round of layoffs went into effect this week at Amazon after CEO Andy Jassy announced this month that around 18,000 workers would be laid off, mostly from the retail division and PXT (People Experience and Technology), which deals with human resources and other matters.
“Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so,” Jassy said in a Jan. 4 blog post. “These changes will help us pursue our long-term opportunities with a stronger cost structure.”
MICROSOFT CUTS 10,000 WORKERS AS TECHNICAL LAYOFFS RISE
The large-scale downsizing trend dates back months, with Facebook’s parent company Meta announcing in November that it would cut more than 11,000 employees and freeze hiring in the first quarter of 2023.
“I want to take responsibility for those decisions and how we got here,” CEO Mark Zuckerberg said. “I know this is difficult for everyone, and I’m especially sorry for those affected.”
Elsewhere in the tech sector, Google’s parent company, Alphabet, cut 15% of employees in the health sciences division Verily, which accounts for more than 200 jobs. CEO Stephen Gillett said in an email to employees last week that the downsizing will halt work on medical software Verily Value Suite and other products in the early stages of development, the Wall Street reported. Log.
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Additionally, Salesforce announced earlier this month that the company will dismiss 10% of its workforce as part of a plan to reduce operating costs and improve operating margins. This percentage rises to more than 7,000 workers.
In the cryptocurrency world, Coinbase last week announced plans to cut 20% of its workforce, impacting around 950 employees. This week, the company announced that it would halt all operations in Japan.
This all comes on top of the fact that Twitter cut about half of its workforce after Elon Musk took over as CEO. Insider reported on Wednesday that the social media company may lay off another 50 employees in the near future.
The big banks have not been spared. Goldman Sachs announced it was laying off 3,200 employees – the most since the 2008 financial crisis. Last month, Morgan Stanley announced it would cut 2% of its workforce and Bank of America said it was enforcing a freeze partial hiring.
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In the media sector, the publisher of the Washington Post told employees last month that there would be single-digit percentage cuts, which The New York Times says is expected in early 2023. CNN and BuzzFeed also announced layoffs in December, and last week it was reported that NBC News and MSNBC would also make cuts.
Despite the layoffs, the White House tweeted a message on Thursday in which it said there was reason to be “optimistic” about the economy. The post included an image of an “economic to-do list”, which included “Creating good jobs” and “Maintaining a strong labor market”.
Julia Musto and Daniella Genovese of FOX Business contributed to this report.