After Meta, Amazon, these tech companies may cut more jobs
Amazon has announced the termination of 9,000 roles, making it the latest giant to announce a second round of layoffs. The company previously axed around 18,000 employees. The decision makes Amazon one of the few tech companies to announce job cuts twice or more. Meta recently announced a second round of firings. Now, let's look at companies that may join this list.
Why does this story matter?
- The technology sector has been swept by layoff news in the last few months. Multiple companies have been affected by harsh macroeconomic conditions and the fear of recession.
- Amazon, like other tech companies, prided itself on job creation. However, the new economic reality has thrown companies into a loop, making them reevaluate their decisions in the past.
The layoffs will affect AWS and advertising divisions
The new announcement means Amazon has cut around 9% of its 300,000-strong workforce. The layoffs will affect AWS, People, Experience, and Technology (PXT), advertising, and Twitch teams. AWS, the company's cloud division, and advertising were once considered untouchable. However, with companies tightening their purse strings, these divisions are now struggling. Twitch, Amazon's streaming platform, will see over 400 employees leave.
Meta fired an additional 10,000 employees
Meta is another big name that cut jobs more than once. Earlier this month, the Mark Zuckerberg-led social media giant announced its decision to fire 10,000 employees. It was in addition to the 11,000 roles the company eliminated in November last year. The company had announced 2023 would be the 'year of efficiency,' but a second round of layoffs was unexpected.
Twitter has had at least 8 rounds of layoffs
Amazon and Meta are now outliers with two rounds of layoffs to their names. We can add Twitter to the list, but the Elon Musk-led company has been firing people at will. The microblogging platform has gone through at least eight rounds of layoffs. For all we know, there might be more in the future. But what about Google, Snap, Spotify, and others?
Alphabet investor wants the company to fire more
Google-parent Alphabet announced its decision to cut 12,000 jobs in January this year. The company has yet to give any hints of another round of terminations. According to Christopher Hohn, the billionaire investor who asked Alphabet CEO Sundar Pichai to cut jobs, Alphabet must cut more jobs than it did earlier this year. However, right now, Google has its focus on the AI race.
Snap and Microsoft may not fire more employees
Other tech companies that fire employees include Microsoft, Spotify, and Snap, among others. The Satya Nadella-led company axed 10,000 employees in its first round. However, considering the wave of success Microsoft is riding, the chances of a second round are less. The layoff trend was started by Snap in August last year. It is plausible to expect there won't be more terminations anytime soon.
Most tech companies hired excessively during the pandemic
All or most tech layoffs have the same theme-companies that hired excessively during the pandemic want to cut jobs to deal with post-pandemic economic reality. Economic uncertainties have forced the hands of many. Streamlining operations has become the only way out. With fears of a recession still looming large, some companies may have felt a second round is necessary.