Home Tech The tech industry's moment of reckoning: layoffs and hiring freezes – The Verge

The tech industry's moment of reckoning: layoffs and hiring freezes – The Verge

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The tech industry's moment of reckoning: layoffs and hiring freezes – The Verge

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By Verge Staff
It feels like every day, we hear news of mass layoffs and hiring freezes from big tech companies that were formerly famous for having deep pockets and near-endless amenities for workers. Now, it’s clear that the industry as a whole is tightening its belt, leaving hundreds of thousands of employees out of work — and more wondering if they’ll have a job within the next few months or searching for jobs in an industry that no longer has a spot for them. It’s gotten to the point where one tech recruiting site created an interactive tool to track the layoffs across established companies and startups.
It’s impossible to blame the wave of large-scale layoffs on any one factor. Twitter’s layoffs happened because Elon Musk bought the company and took it private, and Meta’s CEO claims its 13 percent reduction in staff is a course correction after the company went on a hiring spree during the online retail boom that came out of the pandemic. Companies that rely on advertising, like Meta and Snap, have also been hit hard by privacy policy changes from Apple. Meanwhile, the iPhone maker is blaming the economy for its own hiring slowdown, despite being one of the few companies still announcing record-breaking earnings and beating estimates.
We’ll probably see even more reasons for layoffs or freezes as other companies announce their own. Stay tuned to this page for the latest on big tech companies’ cost-cutting measures and how they affect current and former employees.
Nov 22, 2022, 10:18 PM UTCMitchell Clark
HP, one of the world’s largest PC vendors, according to data from Gartner, announced in an earnings report that it’ll lay off 4,000 to 6,000 employees by the end of 2025. According to numbers cited by CNBC, that’s between seven and 11 percent of its workforce.
This is just the latest in a series of large tech layoffs, not to mention that the PC market has also had an especially rough year following a pandemic boom.
[investor.hp.com]
Nov 20, 2022, 8:47 PM UTCEmma Roth
Internal documents obtained by Insider indicate that Amazon’s Alexa division made up the “vast majority” of the over $3 billion that the company lost across its “Worldwide Digital” department, which includes Alexa, Echo devices, Prime Video, and other products.
Amazon confirmed layoffs affecting thousands of employees on its hardware and services teams last week, and the company’s CEO says to expect even more job cuts next year.
[Business Insider]
Nov 18, 2022, 7:46 PM UTCAndrew J. Hawkins
The company, which was founded by two engineers from the Google self-driving car project, said in a note to staff that it hired too quickly in 2021.
Nov 17, 2022, 10:32 PM UTCJay Peters
The company hasn’t decided how many more jobs it’ll cut, but workers could be left wondering about their jobs for months.
Nov 17, 2022, 9:57 PM UTCMitchell Clark
Entertainment, tech, and advertising companies are cutting back — Roku’s all three in one.
Nov 17, 2022, 1:02 AM UTCJay Peters
And the whole thing was livestreamed on Twitch.
Nov 16, 2022, 11:26 PM UTCSean Hollister
Were you expecting Amazon to simply announce its expected 10,000 layoffs? Recode writes that the company’s swinging the ax quietly instead — quietly enough that many don’t know what’s going on. Meanwhile, “large swaths of the company’s HR division” are receiving voluntary buyout offers.
More at Recode:
[Recode]
Nov 16, 2022, 4:54 PM UTCJay Peters
Amazon’s SVP of devices and services informed employees on Wednesday that it will be cutting jobs from the division.
Nov 16, 2022, 1:08 AM UTCMitchell Clark
After reports that Amazon plans to lay off 10,000 workers this week, CNBC and The Washington Post are reporting that some workers there are being informed they will need to find another job with the company soon or accept a severance payment. Neither outlet mentioned how many people were affected today, and so far there haven’t been any companywide notifications.
From the Post:
Amazon employees were called into meetings with their managers across the country Tuesday, and many were told they had two months to find another job internally or accept severance payment.
[Washington Post]
Nov 15, 2022, 12:09 AM UTCMonica Chin
A nervous Twitter employee, whose boss and coworkers are now gone, has written to the popular work advice column Ask A Manager, asking how the heck they should handle their company’s whole…situation.
Columnist Alison Green’s advice: Stick it out, if you can. “Staying at least gives you the option of severance down the road…and gives you an ongoing income and health insurance,” Green wrote. She added, “I’m sorry something you helped build is being needlessly destroyed.”
[Ask a Manager]
Nov 14, 2022, 11:10 PM UTCSean Hollister
The mass layoffs at Twitter, Meta, and soon possibly Amazon are just the tip of the iceberg.
Tech job marketplace TrueUp.io has been keeping track — and it says over 183,000 people have already been hit by tech layoffs so far in 2022. You can see the details in the company’s interactive tracker here.
Nov 14, 2022, 5:20 PM UTCChris Welch
The cuts would be the most significant in Amazon’s history and continue a wave of mass firings in the tech industry.
Nov 14, 2022, 2:52 PM UTCEmma Roth
In an interview with CBS Mornings, Apple CEO Tim Cook confirms the company is now being very “deliberate” in its hiring and that it’s only bringing new staff members on board in certain departments.
We believe strongly in investing for the long term and we don’t believe you can save your way to prosperity. We think you invest your way to it.
In July, Bloomberg reported Apple planned to slow hiring in 2023 and that not-quite-a-freeze may be setting in early, while other Big Tech companies like Amazon, Google, Meta, and Microsoft undergo their own hiring freezes and layoffs.
Nov 13, 2022, 9:08 PM UTCEmma Roth
According to Platformer, Twitter terminated 4,400 to 5,500 contractors without notifying them in advance.
Nov 12, 2022, 12:21 AM UTCMitchell Clark
The company, like many others, is looking to cut costs by reducing its workforce. It’s also looking into hiring freezes, and slowing down travel.
Nov 9, 2022, 11:12 AM UTCJames Vincent
The company has had a rocky year, squeezed by both the rise of TikTok and the public (and expensive) failure of its push into the metaverse.
Nov 8, 2022, 11:56 PM UTCRichard Lawler
Elon Musk’s mass layoffs at Twitter included severance payment for some workers, and Musk himself said in a tweet that “Everyone exited was offered 3 months of severance, which is 50% more than legally required.”
However, CNN reports termination letters sent to staff at Twitter’s only office in Africa didn’t include their names or mention any next steps or severance, only saying they will be paid until December 4th.
Nov 8, 2022, 10:26 PM UTCDavid Pierce
“Many thousands of employees” are set to be laid off, The Wall Street Journal reported, especially on the recruiting and business teams. Mark Zuckerberg is blaming overstaffing based on inflated growth plans, and has said he’s “accountable” for the mistakes. (Safe to assume he will not be getting laid off, though.)
Those who lose their job should be finding out tomorrow morning, and will reportedly get at least four months’ severance.
[WSJ]
Nov 4, 2022, 7:06 PM UTCAlex Heath and Mia Sato
About half of Twitter’s 7,500 employees are now gone, with teams focused on trust and safety issues hit the hardest.
Nov 3, 2022, 5:40 PM UTCRichard Lawler
The hits keep coming, and this time it’s Amazon, confirming a New York Times report from last month with a public announcement of a “pause on new incremental hires in our corporate workforce.”
The notes about the economy echo other decisions about layoffs or hiring freezes, but as Chris Welch points out, it also oddly refers to Prime Video and Alexa a “newer initiatives” for some reason.
We still intend to hire a meaningful number of people in 2023, and remain excited about our significant investments in our larger businesses, as well as newer initiatives like Prime Video, Alexa, Grocery, Kuiper, Zoox, and Healthcare.
[US About Amazon]
Nov 3, 2022, 5:23 PM UTCAlice Newcome-Beill
The online retailer won’t be filling any more corporate roles until after the new year
Nov 3, 2022, 4:19 PM UTCAndrew J. Hawkins
The ride-hail company is expected to slash hundreds of roles, with Lyft’s president citing a potential recession and worsening economic outlook.
Nov 3, 2022, 3:02 PM UTCVictoria Song
Apparently, the ‘ship is turning,’ but the company’s stock tells a different story as Peloton falls short of Wall Street’s expectations
Nov 1, 2022, 12:35 AM UTCCasey Newton and Zoe Schiffer
Behind the scenes at the wildest tech takeover ever, where everyone knows company-shaking changes are coming — and no one knows exactly when
Oct 27, 2022, 10:23 PM UTCMitchell Clark
The company announced its making cuts in both operations and sales departments and is refocusing on building stateside foundries and cutting up to $10 billion in costs annually by 2025.
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