Careers in the ever-changing world of technology, where invention propels advancement at an unparalleled rate, may be both exhilarating and unpredictable. “Redefining Careers: Stories of Reinvention Amidst the Tech Layoff Landscape” digs into the fascinating stories of individuals who have survived the storm of tech layoffs, turning misfortune into opportunity. We look at how these strong individuals not only navigated the rough waters of job loss, but also used their inventiveness and determination to carve new paths, reshaping their careers in remarkable ways. We gain insight into the power of human adaptability and the tremendous impact of accepting change via these inspiring stories, ultimately presenting an image of triumph among the obstacles of the tech industry.
Shutter fly To Close Minnesota Plant After Another Round of Layoffs
As the dog days of summer come to an end and we all start to look forward to a break from 2023’s terrible record-breaking temperatures, many U.S.-based IT corporations are feeling the need to reduce employees and return to profitability.
While the list of tech companies reporting layoffs in the second week of August is evenly divided between public and private enterprises, those announcing layoffs come from a wide range of industries. Variety of industries.
Blend Labs, a digital lending company based in San Francisco, has reported its fifth round of layoffs since we began tracking tech layoffs at the beginning of 2022. According to Crunch base Layoffs Tracker data, the company, which was launched in 2012, has laid off over 1,000 employees.
What’s the deal with layoffs in technology?
Numerous well-known companies lay off workers, and they represented the full spectrum of technology: crypto (Coin base), e-commerce (Shoplift), ridesharing (Lift), online payments (Stripe), job management platform (Asana), and an online real estate broker (Red fin). The list is endless.
Roger Lee, the founder of Layoffs.fyi, has been tracking layoffs in technology since 2020, when businesses began laying off employees in the early days of the pandemic. The epidemic, according to Lee, provided an opportunity for people to increasingly rely on the Internet for employment, shopping, and socializing. To meet customer demand, tech companies went on a hiring binge.
This increase in IT jobs began in late 2020 and will remain until 2021. Simultaneously, the Federal Reserve’s policy reduced interest rates.
All of the major IT layoffs in 2023
The tech industry is hurting from a bad economy, the COVID-19 pandemic, and some blatant commercial mistakes. While this resulted in job cuts in 2022, they have tragically increased in 2023. It can be difficult to keep track of these changes, so we’ve assembled a list of all the important layoffs in one spot and will continue to update this story as the situation changes.
Layoffs at Google
Google garnered headlines in July when its contracting partner Accenture sacked 80 Help subcontractors who had voted the month before to create the Alphabet Workers Union-CWA. Accenture ascribed the change to cost-cutting measures. While Google stated that it recognized the right of subcontractors to form unions, the former teams accused Google of retaliating against labor organizers.
Layoffs at CD Project Red
The creator of Cyberpunk 2077 is no stranger to business difficulties. CD Project Red announced in July that it would let off roughly 100 employees, or about 9% of its staff, over the next few months. Employees will be laid off until the first quarter of 2024. CDPR was “overstaffed” for a restructure aimed to better handle the game developer’s expanding product roadmap, which includes future Cyberpunk and Watcher titles, according to CEO Adam Nikiski.
Layoffs at Spottily
Spottily announced in June that it would fire off 200 employees in its podcast division, following up on its January layoff plans. The change is part of a more focused strategy to promote podcasts, with improved resources for artists and episodes. In addition, the business is reorganizing its Gimlet and Precast production teams under a new Spottily Studios subsidiary.
Grub Hub layoffs
Grub Hub has been under strong pressure from both the economy and competitors such as Umber, prompting it to lay off 15% of its workforce, or approximately 400 employees, in June. This comes just weeks after outgoing CEO Adam DeWitt announced his departure from the food delivery business. According to new CEO Howard Magda, the employment reduction will help the company remain “competitive.”
Layoffs at Embracer Group
Embracer Group, the world’s largest game publishing company, announced layoffs in June as part of a significant cost-cutting restructuring initiative. The corporation did not specify how many of its 17,000 employees would be affected, but it did state that the restructure would extend through March. The announcement came just days after Embracer disclosed that it had lost a $2 billion transaction with an undisclosed partner despite a verbal agreement.
Layoffs at Sons
Sons have recently struggled to earn a profit, and it is slashing costs to get back on track. In June, the company announced that it would cut 7% of its workforce, or approximately 130 jobs. It also intended to sell real properties and reconsider program spending. CEO Patrick Spence stated that there were “continued headwinds” including declining sales.
Layoffs at Polestar
Polestar postponed manufacturing of their first electric SUV (the Polestar 3) in May, which had an impact on its staff. The Volvo spinoff brand said in May that it would slash 10% of its personnel to minimize expenses as it faced lower manufacturing forecasts and a difficult economy. Volvo needed more time for software development and testing, which delayed the EX90, according to Polestar.
While COVID-19 drove people away from restaurants, food delivery businesses thrived, and at least some are feeling the sting now that people are willing to dine out again. Delivered is cutting off around 350 employees, or 9% of its staff. According to founder Will Shoo, “redeployments” will bring this number closer to 300. The reasoning is familiar: Delivered hired quickly to manage “unprecedented” pandemic-related growth, according to Shoo, but is apparently forced to cut expenditures as company deals with a troubled economy.
Layoffs at Microsoft
Microsoft announced a 10,000-job cut between mid-January and the end of March, the company’s second-largest round of layoffs in history. It was cutting expenditures, like many other tech behemoths, as customers cut back on spending (especially on Windows and gadgets) during the pandemic recovery. The layoffs were particularly harsh for some departments, apparently decimating the Hollers and mixed reality teams, while 343 Industries is said to be restarting Halo development after losing dozens of employees. Godthab is laying off 10% of its workforce, or approximately 300 individuals.
Frequently Asked Questions
1) Why are IT companies laying off employees 2023?
Faced with an uncertain global economy and decreasing revenue growth, technology firms have increased their layoffs in 2023, with total employee cuts now exceeding all tech industry job losses last year. Here’s an updated timeline of the most noteworthy layoffs, as well as the reasons why Big Tech is in such disarray.
Amazon, Google, and Microsoft are just a few of the companies that are laying off employees. The tech industry is hurting from the effects of a difficult economy, the COVID-19 pandemic, and some blatant commercial mistakes. While this resulted in job cuts in 2022, they tragically increased in 2023.
3) How many people have been laid off by tech companies?
According to a Crunchbase News tally, more than 157,517 workers in U.S.-based tech companies (or tech companies with a big U.S. workforce) were laid off in huge job cutbacks in 2023.