The tech sector’s massive cost-cutting mission doesn’t appear to be slowing anytime soon.
Once high-flying companies, with unprecedented valuations and growth-at-all-costs strategies, have started to scale back, as the economy appears to be heading for a slowdown. The efforts, which started in May, have resulted in massive layoffs at several firms, from startups to publicly traded companies worth billions of dollars.
The layoffs in the sector are happening for a variety reasons. But it’s clear that the market is in an entirely different place than it was in 2021, when dealmaking was happening at a rapid pace, and investors were jumping head first into funding rounds with sky-high valuations. Several venture capitalists and private equity firms, for example, have been warning their portfolio companies to preserve cash and look for ways they can cut costs. Oftentimes, that comes in the form of hiring freezes or job cuts.
Fast Company is compiling an ongoing list of tech companies that have announced layoffs recently:
Oracle
Oracle appears to be the latest of the tech firms to announce widespread layoffs. The Information reported the company has laid off an unspecified number of U.S. workers, with plans in the coming months to lay off some in Canada, India, and parts of Europe, which would equate to “thousands.” A spokesperson didn’t immediately respond to Fast Company‘s request for comment. However, several LinkedIn users, who listed their employment as Oracle, took to the social media platform to share they were part of the layoffs and were looking for new work.
Shopify
In July, Shopify laid off roughly 10% of its workforce, or about 1,000 workers. CEO Tobi Lütke told employees at the time that he overestimated how long the e-commerce pandemic boom would last, expecting that the adaptation of online shopping would have permanently jumped ahead by 5 to 10 years.
Netflix
Netflix laid off 300 employees in June, after the company reported that it had lost subscribers for the first time in more than a decade, and slowing revenue growth. Netflix, in an attempt to remedy the decline, said it was going to be rolling out an ad-supported tier in order to draw in more subscribers.
Coinbase
Coinbase told employees in June that the cryptocurrency exchange was reducing its headcount 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 operate the business through any environment,” CEO Brian Armstrong told employees.
Lyft
Lyft cut about 60 jobs in its rental division in July in an attempt to reorganize the business amid rising costs. The company also said it would discontinue its service where it offered its cars for long-term rentals.
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