The tech industry has been facing significant challenges over the past few years, including a struggling economy, the ongoing COVID-19 pandemic, and some notable business missteps. Unfortunately, these circumstances have resulted in numerous job cuts throughout the industry. It can be difficult to keep track of all these layoffs, so we have compiled a comprehensive list of the major layoffs that have occurred recently and will continue to update this information as the situation evolves.
In June, Spotify announced that it would be cutting 200 jobs in its podcast unit. This move is part of the company’s effort to optimize resources for podcast creators and shows. Spotify is also combining its Gimlet and Parcast production teams into a renewed division called Spotify Studios.
GrubHub, a food delivery service, faced intense pressure from both economic conditions and competition from companies like Uber. As a result, the company laid off approximately 400 staff members in June, which accounts for about 15 percent of its workforce. The new CEO, Howard Migdal, stated that these job cuts would help GrubHub remain competitive.
Embracer Group, a game publishing giant, announced plans for layoffs in June as part of a major restructuring effort to cut costs. The exact number of employees affected was not disclosed, but the company expects the overhaul to continue until March. This news came shortly after Embracer revealed the loss of a $2 billion deal with an unnamed partner, despite having a verbal agreement in place.
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Sonos, a company specializing in smart speakers, has been struggling to turn a profit. In June, the company announced that it would be laying off 7 percent of its staff, which equates to roughly 130 jobs. Sonos also plans to offload real estate and reevaluate program spending. CEO Patrick Spence cited “continued headwinds” and shrinking sales as reasons for these layoffs.
Plex, a popular app for streaming media, experienced significant layoffs in June, cutting approximately 20 percent of its workforce, or 37 employees. Most of the affected individuals were part of the company’s Personal Media unit. Reportedly, Plex is feeling the impact of a slowdown in the advertising market and aims to reduce costs and achieve profitability.
Shopify, a Canadian e-commerce platform that played a crucial role during the pandemic, announced in May that it would be laying off 20 percent of its workforce. The company also sold its logistics business to Flexport. Founder Tobi Lütke stated that these job cuts were necessary to focus on Shopify’s core mission and improve overall efficiency.
Polestar, a luxury electric vehicle (EV) maker, delayed production of its first electric SUV in May, leading to layoffs and cost-cutting measures. The company laid off approximately 10 percent of its workforce to lower costs and address reduced manufacturing expectations in a challenging economic climate.
SoundCloud, a streaming audio service, announced in May that it would be shedding 8 percent of its staff in an effort to become profitable by 2023. The company aims to achieve profitability by the fourth quarter of the year, according to insider sources.
Lyft, a ridesharing company, laid off 26 percent of its workforce in April. The company’s new CEO, David Risher, emphasized the need to streamline its business and refocus on drivers and passengers. The previous CEO, Logan Green, had expressed the necessity of increasing spending to compete with Uber.
Dropbox, a cloud storage company, announced in April that it would be laying off 16 percent of its team, totaling 500 employees. Co-founder Drew Houston explained that these cuts were necessary due to a combination of economic challenges, a maturing business, and the need to capitalize on the growing interest in artificial intelligence.
Roku, a streaming platform creator, laid off 200 employees in March 2023 in addition to the 200 job cuts made at the end of the previous year. The company cited the need to curb growing expenses and focus on projects with the most impact. Roku has been facing challenges due to a difficult economy and the end of a pandemic-driven boom in streaming video.
Lucid Motors, a luxury EV maker, announced layoffs in March, amounting to an 18 percent reduction in its workforce, or approximately 1,300 employees. The company attributed these cuts to evolving business needs, productivity improvements, and falling short of production targets.
Meta, formerly known as Facebook, underwent significant job cuts in late 2022, laying off 11,000 employees. However, in March 2023, the company unveiled plans to lay off an additional 10,000 workers as part of ongoing cost-cutting efforts. Meta intends to streamline its operations by reducing management layers and assigning some leaders tasks previously handled by lower-level employees. The company expects to complete its restructuring by late 2023.
Rivian, an electric vehicle manufacturer, laid off six percent of its employees in February. The company has been striving to achieve profitability, and the production shortfalls resulting from supply chain issues have added to its challenges. CEO RJ Scaringe stated that these job cuts would enable Rivian to focus on the most impactful aspects of its business.
Zoom, a video calling company that gained popularity during the pandemic, laid off approximately 1,300 employees in February. The company attributed these cuts to its unsustainable hiring practices amidst its sudden success. CEO Eric Yuan emphasized that the layoffs were necessary to navigate a difficult economic climate. In addition, the management team, including Yuan, implemented salary reductions for the following fiscal year.
Yahoo, the parent company of Engadget, announced in February that it would be laying off more than 20 percent of its workforce throughout 2023, amounting to over 1,600 employees. The majority of these cuts, around 1,000 positions, were immediate and part of a restructuring of the advertising technology unit. Yahoo decided to focus on a successful business while shedding an unprofitable one, effectively opting out of direct competition with Google and Meta in the ad market.
Dell, a PC manufacturer, conducted layoffs in early February, affecting approximately five percent of its workforce, or about 6,650 employees. The company attributed these cuts to a challenging economy and a significant decline in computer shipments during the fourth quarter. Dell stated that these layoffs, along with a streamlined organization, were necessary to regain stability and profitability.
Deliveroo, a food delivery service, experienced layoffs as a result of economic circumstances and shifts in consumer behavior due to the pandemic. The exact number of job cuts was not specified. However, the company has been adapting to changing market conditions and restructuring its operations to maintain stability in a challenging environment.
These major layoffs across the tech industry reflect the challenges faced by companies due to a rough economy, the effects of the COVID-19 pandemic, and strategic adjustments in response to shifting market dynamics. As the situation continues to evolve, it remains crucial to monitor these developments and their impact on the industry and its workforce.
