- On an average, at least 1,600 tech sector workers have been laid off every day of 2023 so far, per Layoffs.fyi.
- That's as 91 tech companies globally have axed 24,151 jobs, just 15 days into 2023.
- 1,023 tech companies laid off 154,256 workers in 2022, per data aggregated by Layoffs.fyi.
Layoffs in the tech sector show no signs of abating — on an average, about 1,600 workers have gotten the pink slip every day in 2023 so far, according to tracking site Layoffs.fyi.
That's as 91 tech companies globally have already laid off 24,151 workers just 15 days into 2023, according to data aggregated by Layoffs.ai. This is already about 15% of the 154,256 workers who were laid off by over a thousand tech companies in 2022.
Amazon, Meta, and Salesforce top Layoffs.fyi's list with about 18,000, 11,000, and 8,000 staffers laid-off, respectively, between November 2022 and January 2023.
The layoffs at Amazon primarily affected those in corporate roles, including those in the company's Devices and Books businesses and human resource department, Insider's Samantha Delouya reported on January 5. Meta cut positions across the company, including its Reality Labs division overseeing metaverse initiatives, while Salesforce's headcount reduction hit the Slack and MuleSoft business units.
The rash of layoffs — which started last year — came after tech companies hired and expanded aggressively during the pandemic. But they started conducting widespread layoffs in late 2022, as earnings weakened across the board amid fears of an impending recession. This also spilled over into 2023.
Amazon and Salesforce announced in the first week of the year they were collectively cutting over 25,000 jobs. Other tech companies that have slashed headcount include media company Vimeo and supply chain software firm Flexport.
And it's not just the tech sector that's laying off staff either.
Last week, banking giant Goldman Sachs started laying off 3,000 employees globally as dealmaking slows. BlackRock, the world's largest asset management firm, is also slashing up to 500 roles for the first time in four years.
Marc Benioff, Salesforce's CEO, attempted to explain his company's rationale for the downsizing in his memo to staff, saying: "as our revenue accelerated through the pandemic, we hired too many people leading into this economic downturn we're now facing, and I take responsibility for that."
2023 has barely started and Amazon, Salesforce, and Vimeo have already announced over 25,000 job cuts
- Amazon will be cutting over 18,000 jobs, CEO Andy Jassy confirmed Thursday.
- Salesforce said on Wednesday it will cut about 10% of its 73,541-strong workforce, and close some offices.
- Media company Vimeo also said on Wednesday it will lay off 11% of its 1,200 workforce.
It's just five days into 2023, but the tech winter has already begun dampening the new year's spirit — Amazon, Salesforce, and Vimeo have just announced over 25,000 job cuts amid fears of an upcoming recession.
Amazon CEO Andy Jassy confirmed Thursday the ecommerce giant's latest round of layoffs — which started back in November — will see 18,000 jobs impacted. Meanwhile, Salesforce is planning over 7,000 job cuts and Vimeo is rounding up with the list with over 100 reductions.
Amazon's massive job cuts — which was first reported by the Wall Street Journal on Wednesday — were far higher than its initial plans of 10,000 job cuts.
"This year's review has been more difficult given the uncertain economy and that we've hired rapidly over the last several years," Jassy wrote in a note to staff on Thursday. Amazon employs 1.5 million workers and this round of job cuts is the largest in the company's history.
"Companies that last a long time go through different phases. They're not in heavy people expansion mode every year," said Jassy in his note.
On Wednesday, Salesforce said it will cut about 10% of its 73,541-strong workforce, and close some offices in a bid to slash costs.
"The environment remains challenging and our customers are taking a more measured approach to their purchasing decisions," co-CEO Marc Benioff said in an email to staff.
Media company Vimeo also said on Wednesday it will lay off 11% of its total staff. The staff cuts will help Vimeo address economic concerns, a company spokesperson told Insider's Grace Kay. The company employed about 1,200 staffers as of December 2021, according to its annual regulatory filing.
The rash of layoffs came after tech companies hired and expanded aggressively during the pandemic. As Salesforce's Benioff put it in his memo to staff, "as our revenue accelerated through the pandemic, we hired too many people leading into this economic downturn we're now facing, and I take responsibility for that."
Now, tech companies are shifting their strategies amid fears of an impending recession. More than 1,000 tech companies globally have collectively cut more than 150,000 jobs in 2022, according to tracking site Layoffs.fyi.
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