Amazon And Google Add To Layoff Counts While E-Commerce Retailer Wayfair Makes Another Big Cut And A Social Media Startup Calls It Quits At just a little past the halfway point of the first month of the year, the number of tech sector companies reporting layoffs have tapered off, coming in at less than half the nearly 30 companies we added to the Layoffs Tracker last week.
Leading the way with the week’s highest count of reported layoffs is Boston-based e-commerce retailer Wayfair , which, according to a report , cut staff across all departments.Initially filling positions to keep up with the surge of demand from consumers — many of whom were setting up home offices for the first time during 2020’s stay-home mandate — the company appears to be overstaffed for the recent drop in sales.
Cuts continue at behemoths Amazon and Google , this week affecting their Buy with Prime division and the ad sales unit, respectively.In addition, Google subsidiary YouTube reported cutting 100 positions and will reorganize and combine teams to continue providing assistance to users and creators.It’s unclear how many total U.S.workers at either of the giants are being let go.
The only U.S.tech startup reporting a total shutdown this week is Los Angeles-based social media platform Artifact .According to a blog post by CEO Kevin Systrom , although the users are no longer able to add comments and posts, the startup will continue to “operate the core news reading capability through the end of February.”
What does the rest of 2024 have in store for U.S.tech workers? Only time will tell.
Latest tech layoffs The following companies were added to the tracker this week:
Amazon Artifact First Mode Google Hologram SonderMind Veeam Vendr Wayfair YouTube Tech Layoffs: US Companies That Cut Jobs In 2022, 2023 And 2024
By the numbers Layoffs during week ended Jan.
19, 2024: At least 2,215 U.S.tech sector employees were laid off, per a Crunchbase News tally.
In 2024: At least 6,505 workers at U.S.-based tech companies have lost their jobs so far in the year, according to a Crunchbase News tally.
In 2023: More than 191,000 workers in U.S.-based tech companies (or tech companies with a large U.S.
workforce) were laid off in mass job cuts.
In 2022: More than 93,000 jobs were slashed from public and private tech companies in the U.S.
Companies with the biggest workforce reductions in 2023 Amazon [16,080 roles] Alphabet [12,000 roles] Microsoft [11,158 roles] Meta [10,000 roles] 3K Shares Methodology This tracker includes layoffs conducted by U.S.-based companies or those with a strong U.S.presence and is updated at least weekly.
We’ve included both startups and publicly traded, tech-heavy companies.We’ve also included companies based elsewhere that have a sizable team in the United States, such as Klarna , even when it’s unclear how much of the U.S.workforce has been affected by layoffs.
Layoff and workforce figures are best estimates based on reporting.
We source the layoffs from media reports, our own reporting, social media posts and layoffs.fyi , a crowdsourced database of tech layoffs.
We recently updated our layoffs tracker to reflect the most recent round of layoffs each company has conducted.
This allows us to quickly and more accurately track layoff trends, which is why you might notice some changes in our most recent numbers.
If an employee headcount cannot be confirmed to our standards, we note it as “unclear.”
Frequently Asked Questions What is a layoff? A layoff can be either a permanent termination of someone’s employment — usually for cost-saving reasons — or a temporary one because there’s not enough work to justify a full workforce.Tech company layoffs generally fall into the permanent category.
A mass layoff is when a significant number of a company’s employees are cut in a short period of time, often as a result of economic conditions.
Why are tech companies doing layoffs? Tech layoffs increased throughout 2022 and 2023.Companies have given various reasons for conducting layoffs.
Some companies — especially those in the e-commerce sector — nearly doubled their employee headcount to meet consumer demand during the COVID-19 pandemic’s stay-at-home mandates, and now find that they are overstaffed for the current economic climate.
Large tech employers such as Salesforce and Google parent Alphabet have noted that the recent layoffs follow several years of rapid hiring fueled by fast growth — between 2019 and 2022, some companies nearly doubled their employee headcount.Some large tech companies that have done layoffs have also cited a decline in their stock price, slowing sales and fears of a recession as reasons for downsizing.
What are the biggest tech layoffs of 2023? Amazon layoffs lead the 2023 numbers with 16,000 roles cut as of mid-May.
Layoffs at Alphabet , the parent company of Google , total about 12,000.
Microsoft ’s layoffs total about 10,000 workers, as do Facebook parent Meta ’s layoffs.Together with Salesforce , these tech companies conducted the largest layoffs of the past two years, totaling tens of thousands of roles.
While those numbers are alarming, as of early April 2023 the combined layoffs at these companies represent only 8% of the number of new hires they made during the pandemic .
Many other venture-backed tech startups have also done layoffs, pointing to a slowdown in venture capital funding and falling startup valuations as factors in their decisions to conduct layoffs.
Are more tech layoffs coming? Yes, more layoffs are likely coming.While there are signs that the volume of layoffs is tapering, experts we talked to expect job cuts in the tech sector to continue for the foreseeable future as large tech companies and startups continue to battle economic headwinds.
Seed and early-stage startups in particular may continue to conduct layoffs in an attempt to extend their cash runways in a difficult venture funding environment .
What are signs that a company is planning layoffs? Signs that may indicate a company is more likely to conduct layoffs include:
A hiring, payroll or promotion freeze: Payroll is the most significant cost for most technology companies and often the first place company leaders will attempt to contain costs.Companies may do this by pausing hiring for all but the most mission-critical roles and by freezing promotions and pay raises for existing employees.
Red flags in the company’s financial performance: A company that’s struggling with declining revenue or profit — or simply not growing at the rate anticipated — is more likely to conduct layoffs and other cost-cutting measures.Unfortunately, employees at many private startups are not privy to detailed financial information about their employers.Restructuring teams or departments: Companies may merge or consolidate teams in an attempt to streamline operations and cut costs.The redundancies that result from these restructuring moves often lead to job cuts.
Companies may also increase their reliance on outsourced teams or contractors.Increased internal communication: Frequent communication to employees from management about the company’s financial challenges, workforce optimization, the need to reduce expenses, or the need for higher productivity might indicate that layoffs are under consideration.Venture-backed startups try to manage their cash runway — the amount of time they can continue operating at their current cash burn rate without fresh capital — and may also warn employees about the need to reduce cash burn.Unexpected changes in company policy: A company that suddenly mandates that employees who have worked remotely return to a physical office may be contemplating layoffs.Often, such policies are used as rationale to shed workers who don’t comply with the new mandates.Similarly, unexpected organizational assessments or audits of employee performance outside of regularly scheduled business reviews may be precursors to layoffs.Decreased workload or project cancellations : Other signs that a company is experiencing financial difficulties that could lead to layoffs include a noticeable reduction in workload for employees or major projects that are canceled or postponed.
Other cost-cutting measures : Companies frequently pause or cancel perks and benefits including employee travel, catered meals or education or wellness stipends ahead of larger cost-cutting measures such as layoffs.When will layoffs stop? Tech layoffs will likely slow when we see more down rounds and when the global economy improves.In a down round, a company raises funds at a lower valuation than its previous financing round.
Startups that raised capital during the venture funding heyday at inflated valuations in 2021 are more likely to need to conduct layoffs in 2023.
How many recent tech layoffs have there been? More than 93,000 U.S.tech employees were laid off in 2022.As of mid-May 2023, around 150,000 U.S.
tech employees have lost their jobs this year alone.
Is selling the company a good option to avoid layoffs? No, according to experts in the sector, who say a sale is unlikely to solve a tech company’s cash-flow issues.This is especially true as fewer startup M&A deals are happening in the current downturn.
What jobs are being cut in tech layoffs? Tech layoffs have hit across departments at many companies.
Many layoffs from the large tech giants were software engineers .
Startups tend to be more likely to retain engineers in favor of doing layoffs in their talent and recruiting, marketing and other departments.
Google cut roles in its sales, recruiting, product and engineering teams.Amazon layoffs included jobs in its AWS cloud unit, at its social video platform Twitch , and in its advertising department.Meta CEO Mark Zuckerberg said the company’s recruiting department would be the first to see job cuts.
Where can I read recent tech layoff news? Follow all of our tech layoffs news here and track which companies are cutting jobs with the layoffs tracker above.
Where can I see layoffs in the last 24 hours? While not daily, this Crunchbase Tech Layoffs Tracker is updated weekly, if not more frequently, with the latest job cuts at U.S.
tech employers.
Which companies are hiring for open tech jobs? Many tech companies continue to hire for open roles, despite layoffs in the sector.Find out more about Crunchbase’s Actively Hiring filter and how you can find companies with multiple open roles.
Crunchbase News also highlights recently funded startups that are actively hiring in our weekly Who’s Hiring feature.You can find all of our job market-related news here .
Can I cite the Crunchbase Tech Layoffs Tracker? Yes.
Please cite Crunchbase News and include a link to this Tech Layoffs Tracker .
Related Articles Tech Layoffs May Have Peaked, But They’re Still Accumulating Can A Sale Stave Off Layoffs? VCs Say ‘No’ Is AI The Cause Of Job Cuts This Year? How To Hire While Avoiding Future Layoffs Have Tech Layoffs Peaked? Pink Slips to Pitch Decks: Laid-Off Tech Workers Roll The Dice In Iffy Funding Market To Start Their Own Companies With 9,000 New Cuts, Amazon Leads With Most Tech Layoffs Analysis: Tech Layoffs Are Accelerating Tech Companies Are Bracing For A Winter of Layoffs Companies That Raised Money In 2021 Are More Likely To See Layoffs Show more Find the right companies, identify the right contacts, and connect with decision-makers with an all-in-one prospecting solution.
Learn More Tech Layoffs News Economy • Job market • Layoffs • Public Markets • Startups The Crunchbase Tech Layoffs Tracker January 19, 2024 · 1 min read Artificial intelligence • Economy • Layoffs • Startups • Venture Survey Says: Readers Forecast Sunnier Outlook For Startup World In 2024 January 10, 2024 · 7 min read Artificial intelligence • IPO • Layoffs • M&A • Startups • Venture Forecast: After A Turbulent Few Years, Venture Should Steady In 2024 January 8, 2024 · 6 min read Artificial intelligence • IPO • Layoffs • Public Markets • Startups • Venture Forecast: 5 Top Trends In Tech And Startups We’re Watching In 2024, From AI To IPOs December 29, 2023 · 5 min read Artificial intelligence • Crypto • Fintech & e-commerce • Layoffs • Startups • Venture From SVB And SBF To AI And IPOs, There Was A Lot Of Action (And Acronyms) In 2023 December 27, 2023 · 8 min read Artificial intelligence • Economy • Fintech & e-commerce • Layoffs • Seed funding • Startups • Transportation & Logistics • Venture Our 10 Most-Read Stories Of 2023, From Charting The VC Downturn To Layoffs To Some Very Large AI Deals December 15, 2023 · 5 min read Artificial intelligence • Economy • Job market • Layoffs • Public Markets • Startups • Venture Reader Survey: IPOs? Layoffs? More AI? Tell Us What You See Coming In 2024 December 13, 2023 · 1 min read Artificial intelligence • Layoffs • Startups • Venture From Layoff To Legal Tech: Founder’s Startup Gains Momentum November 28, 2023 · 3 min read Artificial intelligence • Layoffs • Startups Tech Layoffs May Have Peaked, But They’re Still Accumulating November 27, 2023 · 2 min read Job market • Layoffs • Startups How To Hire While Avoiding Future Layoffs November 3, 2023 · 3 min read.
