Carvana said the decision was due to “macroeconomic factors” that “have pushed automotive retail into recession.” The laid-off employees mostly served in operational roles and made up about 12% of the company’s workforce. Laid off 2,500 employees, many of them over Zoom, on May 10. Maju Kuruvilla, the CEO of payments company Bolt, toldĮmployees that the company is undergoing “several structural changes,” and cut more than 100 staff members in order to “secure financial position” amid shaky market conditions on May 25. Just weeks after laying off more than 80 employees at its San Jose headquarters, PayPal let go ofĪdditional employees in risk management and operations in Chicago, Nebraska and Arizona on May 26. In a message to staff, Gorillas co-founder and CEO Kagan Sumer said, "Two months ago in March, the markets turned upside down, and since then the situation has continued to worsen.” Half its corporate staff, or about 300 employees around the world, on May 24. Lacework said in a blog post that the decision was part of “restructuring and modification to the company plan." Cybersecurity professionals have been in high demand, with companies like Microsoft announcing plans to help with reskilling efforts to account for the widening gap in jobs and those with the knowledge to fill them. Though it didn’t disclose the number of people this would affect, the company had previously reported having more than 1,000 employees as of March 2022. And layoffs keep coming as macroeconomic conditions continue to get rocky.Ĭybersecurity firm Lacework laid off 20% of its workforce on May 25. A crowdsourced tech startup layoffs tracker, Layoffs.fyi, has recorded layoffs of tens of thousands of employees at hundreds of startups in recent months. Layoffs range from the small-scale to, in the worst cases, mass layoffs conducted via impersonal video messages that have left employees gutted and the industry asking, “ Are Zoom layoffs ever OK?” In mid-May, former Employment Development Department director Michael Bernick told KTVU that tech layoffs were at their highest point since January 2021, and they’ve come for both the giants and startups. Tech companies that have laid off employees in 2022 Average hourly wages are also continuing to grow (but still below the pace of inflation). employers adding 428,000 jobs in April, more than expected, according toīureau of Labor Statistics data. What we’re seeing in one sector - though a substantial one - stands in stark contrast to the rest of the economy, with U.S. The bright spot? The tech industry may be under siege, but American job seekers overall still have substantial bargaining power. Get some seniority and work hard to make yourself irreplaceable. One user wrote, “No company is lay-off safe. On Blind, speculative posts about layoffs like one called “Layoff safe companies that are still hiring?” haveĭrawn hundreds of comments. By late May, the S&P 500, dominated by tech stocks, had lost over 20% of its value since the beginning of the year. Industry stalwarts (Microsoft), upstart social media companies (Snap), and crypto newbies (Coinbase) haven’t announced layoffs, but they’ve all slowed hiring after poor quarterly results. Big tech companies including Meta, Salesforce, and Netflix have also recently announced hiring freezes or layoffs in the midst of cost-cutting pressure and rising inflation, coupled with a looming bear market and rising interest rates. It’s not just early-stage startups that are feeling the burn. In May, Y Combinator sent an email to its portfolio founders warning them to “ plan for the worst.” The startup accelerator cautioned that the downturn would likely most affect “international companies, asset heavy companies, low margin companies, hardtech, and other companies with high burn and long time to revenue." It’s the dot-com bust all over again - this time, without the cute sock puppet and in the midst of a global pandemic we just can’t seem to shake.įounders and investors are preparing for what looks like an economic downturn - and perhaps even a recession. High-flying startups with record valuations, huge hiring goals, and ambitious expansion plans are now announcing hiring slowdowns, freezes, and in some cases widespread layoffs.
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