Reports emerged this week that Amazon is planning to lay off about 10,000 people, due to Facebook parent company Meta’s confirmed plan to cut its workforce by 13 percent, or 11,000 people.
It follows Twitter’s workforce cut in half with the layoff of nearly 4,000 employees earlier this month, just days after the platform was acquired by Elon Musk.
More generally, there will be massive job losses in the wider technology sector in 2022 fired.fyiTracking job losses from public reports, more than 120,000 workers have been laid off at 795 technology companies this year.
Tech giant Amazon has begun significant layoffs, with plans to cut 10,000 jobs, the New York Times reported. These cuts are the largest in Amazon’s history, representing about 3 percent of the company’s workforce and 1 percent of its global workforce of more than 1.5 million.
Job losses will be seen primarily in Amazon’s device organization, including Alexa voice assistant, its retail division and in human resources.
Amazon experienced astronomical growth during the pandemic, thanks in large part to the significantly increased use of online shopping and the growth of its cloud computing services.
As a result, Amazon doubled its workforce in just two years.
But the company’s growth has slowed in recent months, hitting its lowest growth rates in 20 years earlier this year.
Last week, Amazon’s stock reached its lowest level since the start of the pandemic, depreciating $1 trillion since last year.
Just days before the massive job cuts were reported, Amazon founder Jeff Bezos announced he planned to give away most of his $124 billion wealth over his lifetime to tackling climate change and inequality.
Meta, the parent company of Facebook, Instagram and WhatsApp, announced this last week plans to cut 11,000 employees, the largest cuts in the company’s history, representing 13 percent of its 87,000 employees worldwide.
Meta CEO Mark Zuckerberg labeled the decision the “hardest change we’ve made in Meta’s history.”
“I know this is hard for everyone, and I’m especially sorry for those affected,” Zuckerberg said.
Zuckerberg blamed Meta’s focus on growth and hiring during its surge in popularity during the pandemic, and subsequent recent downturn, for the decision. He said the “macroeconomic downturn” and “increased competition” led Meta’s revenues to be much lower than expected.
“A lot of people predicted that this would be a permanent acceleration,” he said. “So did I, so I made the decision to significantly increase our investments. I misunderstood this and I take responsibility for that.”
meta announced its financial results for the third quarter of 2022 earlier this month, which outlines declining revenues, stagnant users, and huge losses from the company’s big bet on the metaverse. Meta lost $3.7 billion in the third quarter of 2023 through Reality Labs, the in-house division focused on the metaverse.
Overall, Meta’s net income was down more than 50 percent year-over-year.
And Twitter is also now reportedly cutting more than 4,000 contractors focused on content moderation and engineering, after laying off 3,700 full-time employees earlier this month. This job loss happened just days after Elon Musk took control of Twitter.
Musk claimed these cuts were necessary because of a “massive drop” in revenue, and saw up to half of his workforce leave within a day.
This means that about 25,000 full-time workers at these three tech giants have lost their jobs this month alone, as economic headwinds and a lack of confidence in tech companies hit them hard.
Other tech giants, including Lyft, Stripe and Snap, have also announced significant job cuts in recent months.
Earlier this month, Lyft said it would lay off about 683 employees, and Stripe revealed it would shed 14 percent of its workforce, affecting 11,200 employees.
In September, social media company Snap laid off 20 percent of its team and cut 1,300 jobs.
In contrast to massive layoffs at other tech giants, social media company TikTok aims to nearly double its U.S. workforce to 2,000 people, according to The information.
TikTok has reportedly approached some of the fired Twitter employees to join the company.