The tech industry has had a difficult time navigating the challenges of a tough economy, the COVID-19 pandemic, and various business missteps. Unfortunately, the downturn has led to significant job cuts in the industry. In this article, we will discuss major job cuts in the tech industry that occurred in 2022 and 2023.
Shopify layoffs
Shopify, the Canadian e-commerce platform that played an essential role during the pandemic, had to reduce its workforce by 20% in May 2023. The company has been selling non-core assets and restructuring to focus on its core mission as stable economic boom times are over. Shopify founder Tobi Lütke said the job cuts were necessary for the company to be more efficient.
Polestar layoffs
Polestar, the Volvo spinoff brand, announced in May 2023 that it was laying off 10% of its workforce as it faced reduced manufacturing expectations due to the delay of its first electric SUV (the Polestar 3) due to software development and testing issues.
SoundCloud layoffs
After extensive layoffs in 2022, SoundCloud announced in May 2023 that it would cut 8% of its workforce to become profitable by Q4 of 2023. The streaming audio service hopes to achieve profitability after years of financial difficulties.
Lyft layoffs
Lyft laid off 26% of its workforce (1,072 workers) in April 2023 after laying off 13% of its staff in November 2022. The ridesharing company aims to streamline its business and refocus on drivers and passengers, according to new CEO David Risher.
Dropbox layoffs
Cloud storage company Dropbox announced in April 2023 that it would lay off 16% of its team (500 employees) due to a rough economy, maturing business, and urgency to invest in artificial intelligence. The company is profitable but needs to slow its growth and reduce unsustainable investments.
Roku layoffs
The streaming platform creator, Roku, announced layoffs in March 2023, cutting an additional 200 jobs after shedding 200 jobs at the end of 2022. The company is struggling with a tough economy and the end of a pandemic-fueled boom.
Lucid Motors layoffs
Lucid Motors, the luxury electric vehicle (EV) maker, announced that it would lay off 18% of its workforce (about 1,300 people) in March 2023 to deal with evolving business needs and productivity improvements. The company is still falling short of production targets, and the layoffs reportedly help to counter the economic challenges.
Meta layoffs
Meta, the Facebook owner, laid off 11,000 jobs in the fall of 2022 and announced plans to lay off another 10,000 workers in March 2023, reducing management layers, and asking some leaders to take on work previously reserved for the rank and file. The company aims to streamline its operations and complete its restructuring effort by late 2023.
Rivian layoffs
The electric vehicle brand, Rivian, laid off another 6% of its employees (about 840 workers) in February 2023 to focus on the highest impact aspects of its business and achieve profitability. The company has faced challenges due to supply chain issues and is fighting to remain competitive.
Zoom layoffs
Video calling platform Zoom announced that it was laying off roughly 1,300 employees (15% of its personnel) in February 2023 as it had not hired sustainably during the pandemic. The company is reportedly taking these steps to survive a tough economic climate.
Yahoo layoffs
Yahoo announced in February 2023 that it would lay off over 20% of its workforce throughout the year (more than 1,600 people) as it is restructuring its advertising technology unit by shedding an unprofitable business and focusing on a successful one. The company hopes that its restructuring efforts will help it remain competitive.
Dell layoffs
Dell announced layoffs of 5% of its workforce (about 6,650 employees) in February 2023 due to the pandemic recovery and a harsh economy. The company had a brutal Q4 2022, where computer shipments plunged 37%, and the layoffs and streamlined organization are efforts to help it get back on track.
Deliveroo layoffs
Food delivery service Deliveroo announced it would lay off about 350 workers (9% of its workforce) in February 2023 due to the need to cut costs as it deals with a troublesome economy. The company hired rapidly to handle pandemic-related growth but is now trying to align its business with economic challenges.
DocuSign layoffs
DocuSign, the online document signing service, announced layoffs of 10% of its workforce (numbering around 746 people) in February 2023 as it faces the impact of a harsh economic climate. Most of those losing their jobs work in DocuSign’s worldwide field organization.
GitLab layoffs
DevOps platform GitLab announced that it was laying off 7% of its employees (about 114 people) in February 2023 as customers took a more conservative approach to software investment due to a problematic economy. The company is trying to counter the challenges by refocusing its spending.
GoDaddy layoffs
Web service provider GoDaddy is laying off 8% of its workforce (more than 500 people) in February 2023 due to the need to manage an uncertain economy. CEO Aman Bhutani claims that this is the company’s effort to navigate the current economic climate.
Twilio layoffs
Twilio, the cloud communications platform, announced layoffs of over 800 jobs in September 2022. The company is cutting deep again in 2023, laying off 10% of its workforce to manage costs as customers take a more conservative approach to software investment due to the downturn.
In conclusion, the tech industry has struggled in the past two years due to a combination of economic challenges, the pandemic, and business missteps. Unfortunately, the result has been significant job cuts in the industry. Companies are struggling to remain competitive and profitable, and many have been forced to restructure and streamline their operations.
