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Visualizing tech company layoffs in 2022

Visualizing tech company layoffs in 2022

Visualizing tech company layoffs in 2022

Visualizing tech company layoffs in 2022

Layoffs are happening so frequently in 2022 that we all Crunchbase to India’s technology website Inc42 they are now following up.

There’s even a standalone website that keeps track of it all technological releases in the united states

For the purposes of this infographic, we used the data here trueup.io that includes a mix of US and international tech companies that are laying off workers in 2022.

A thousand cuts: mass company layoffs

Layoffs are affecting the entire tech industry, and the phenomenon is global. Here are some of the top examples of mass layoffs in 2022:

Meta: The social media giant faces competition from upstarts like TikTok, as well as a pool of ad dollars that are dwindling in the face of a weak economy. As painful as this narrowing of the meta is, it’s worth considering a broader perspective. After nearly two decades in business, these will be the company’s first large-scale job cuts.

Twitter: While the meta has won with the sheer volume of cuts, Twitter’s mass releases are the most dramatic. In early November, the company’s iconoclastic new owner, Elon Musk, cut 50% of the workforce, and shortly thereafter, thousands of contractors also suddenly lost their jobs. Calculating how many employees remain in the company will be a challenge until the dust settles.

Byju’s: The releases aren’t just limited to the United States. India’s large tech sector is also facing cuts. EdTech giant, Byju’s, laid off 2,500 workers in October, about 5% of its total workforce.

Ball: The high-end workout equipment company has been downsizing throughout the year. In the visualization above, companies like Meta stand out as they laid off thousands of workers at once. Peloton, however, phased the layoffs over the course of the year. After much growth began to stall during the pandemic, the company is slimming down to regain profitability.

Why are tech companies laying off so many people?

The reasons cited for leaving many employees are economic uncertainty (external factors) and poor performance (internal factors).

Goldman Sachs Research it indicates “High interest rates and tight financial conditions disproportionately affect the sector, as the earnings of technology companies are typically expected further into the future and thus carry greater duration risk.”

Shrinking advertising budgets and the implosion of the cryptocurrency market are also factors that may have influenced the decision to downsize. Twitter and Snapchat fall into the former bucket, while Coinbase and Kraken fall into the latter.

What do these job cuts mean for the economy?

First, widespread layoffs in the tech sector seem like they might bode ill for the broader economy, especially given the enormous influence tech companies have on markets.

Fortunately, that doesn’t seem to be the case. US government payrolls and wage data beat forecasts, and the country’s unemployment rate is near a half-century low.

So why disconnect?

First, tech jobs account for less than 3% of all American employment. Additionally, tech workers who have lost their jobs have a high chance of finding a new job in a short period of time.

It remains to be seen whether November will be the peak of job cuts. Employers generally try to avoid letting people go before the holiday season. A week into December, Trueup.io has tracked more than 7,600 releases.

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