Top Tech Companies and Startups Hiring During the Mass Layoffs of 2023
February 22, 2023, 5 min read
Major IT businesses like Amazon and Salesforce have already begun laying off employees, which is expected to continue beyond 2023.
Twitter, Tesla, Shopify, Microsoft, and Netflix were just some of the large digital businesses that reduced headcount, sometimes many times, in the past year.
Read on for information about the tech company layoffs in the IT industry in 2023 and 2022.
The first one of the significant tech layoffs is Yahoo. Yahoo has announced that it will lay off 20 percent of its staff, with plans to let go of many employees by the end of the week. According to a Yahoo representative speaking to CNBC, the headcount of the former Yahoo for Business division would be reduced by approximately half by the end of 2023, reflecting the changed focus of the new Yahoo Advertising group.
There will be approximately 300 significant-tech layoffs at GitHub, about 10% of the company’s employees. On top of that, the company has decided to maintain its employment freeze instituted in January. The business will also go entirely virtual, closing its brick-and-mortar locations as their leases expire.
Microsoft finally confirmed the existence of reports of 10,000 internal layoffs. CEO Satya Nadella reassured employees in an email that hiring will continue in “critical strategic areas” despite the layoffs. “macroeconomic conditions and changing customer demands,” the corporation says, are to blame for the releases.
The corporation announced many layoffs last year, but none on this scale.
SmartNews has confirmed that it will eliminate 120 jobs across the organization, including those in the United States and China. With a staff of roughly 900, SmartNews has experienced a significant 13% decrease in personnel. The firm told TechCrunch that ‘economic conditions’ were to blame.
In a global announcement, eBay said it would lay off about 500 employees. According to eBay CEO Jamie Iannone, “extra space to invest and develop new positions in high-potential areas — new technologies, customer innovations, and critical markets” will result from the tech industry layoffs, which amount to about 4% of the company’s entire staff.
The company announced about fifteen percent of Zoom’s employees, or about 1,300 people, will be let go. Zoom’s popularity skyrocketed as the pandemic spread, and the company’s name eventually became associated with online meetings. However, the firm is now cutting costs because of the “uncertainty of the global economy,” CEO Eric Yuan said.
Technology behemoth Dell has announced it will cut off more than 6,000 workers, or around 5% of its workforce. Despite recent cost-cutting measures, such as a hiring restriction, Dell Co-Chief Operating Officer Jeff Clarke said, “Market conditions continue to degrade with an uncertain future.”
About 2000 PayPal employees, or about 7% of the company’s staff, were informed of their tech job layoffs. Dan Schulman, the CEO, issued a statement pinning the decision on the current “difficult macroeconomic situation.”
Groupon has begun its “second phase of restructuring,” which will result in the loss of 500 jobs. The company expects to finalize all layoffs by the end of the second quarter of 2023. This marks the second significant layoff within six months, following the termination of 500 employees in August 2022.
With this announcement, IBM will lay off approximately 4,000 workers, or 1.4% of its staff. Kyndryl Holdings, the firm’s IT services business, and Watson Health, its healthcare IT subsidiary, will both be affected by the layoffs. Despite CFO James Kavanaugh’s assertion that “[IBM is] dedicated to hiring for client-facing research and development,” the recent tech layoffs are attributed to IBM’s failing to meet its yearly cash target.
Intel has confirmed it will lay off more than 500 employees in its latest round of layoffs in the tech industry to save $3 billion in operating expenses this year. Intel’s revenue drop of 20% may explain the company’s decision to lay off 544 workers. While this number is significantly smaller than the recent layoffs at Google and Microsoft, it offers little comfort to those affected by job loss.
Due to the company’s recent layoff announcement, approximately 6% of Spotify’s overall personnel will be let go. Spotify CEO Daniel Ek admitted, “In hindsight, I was excessively ambitious in investing ahead of our revenue growth,” in an internal memo. And that is why, effective immediately, we will be making a company-wide reduction of around 6% in staff.
A reduction in exclusive podcasts led to the company laying off 40 employees in October.
Alphabet, the parent company of Google, has announced massive tech companies layoffs, affecting 12,000 people. Recruiting, engineering, and releases will reportedly impact product management. For example, CEO Sundar Pichai recently emailed employees, “I am confident about the immense opportunity in front of us thanks to the strength of our purpose, the value of our products and services, and our early investments in AI.”
In 2022, when many of its rivals were slashing their workforces drastically, Alphabet/Google stood out by not cutting any positions. It would appear that not even Googlers are immune to this threat.
In mid-January, Sophos confirmed layoffs of 10% of its global workforce, joining recent similar announcements. With a focus on cybersecurity services like managed detection and response, reports state that over 450 employees have been affected.
OneTrust, which develops and sells tools for protecting personal information and managing large datasets, also reduced its staff significantly in the past year. About a fourth of the company’s workers or about 1,000 people, were laid off.
Keith Alexander’s cybersecurity firm IronNet laid off 17% of its workforce in June and an additional 35% in September due to severe issues.
Cybereason had already reduced its employment by 10% in the previous months before announcing a further 17% reduction in the fall. Roughly 300 workers were let go by the company.
Recently valued at $7.4 billion, developer security firm Snyk stated in October that it had begun restructuring and decreasing its global workforce, impacting 198 workers, or 14% of the total.
F5, a company that specializes in providing solutions for securing applications and delivering them to end users, revealed in the same month that it would be eliminating 100 positions or 1% of its
Forescout Technologies, a provider of enterprise security solutions, is said to have laid off another 100 of its 170 staff at its research and development center in Israel.
Thousands of people in the technology business have been impacted by the layoffs announced during the first few weeks of 2023.
In this post, we walked through the companies that have announced layoffs in 2023. We hope this won’t continue and each tech professional finds the best career option for them.
P.S. For updated news & job opportunities, please follow the tech company’s official website.
Techcrunch blog post