From Wall Street to big tech: the companies that went on a recent wave of layoffs

Just this week, Google parent Alphabet, Microsoft and Vox Media announced layoffs that will affect more than 22,000 workers.

His moves follow job cuts earlier this month at Amazon, Goldman Sachs and Salesforce. More companies are expected to do the same, as those that have hired aggressively over the last couple of years have put on the brakes and, in many cases, backed out.

The cuts are in stark contrast to 2022, which saw the second-highest level of job gains on record in the US at 4.5 million. But the number of jobs from last year has started to decline as the year has gone on, with the December jobs report showing the lowest monthly gains in two years.

The highest level of hiring occurred in 2021, when 6.7 million jobs were added. But that was just after the first year of the pandemic, when the US effectively shut down and 9.3 million jobs were lost.

The current layoffs come across a range of sectors, from media companies to Wall Street, but so far they are hitting big tech companies in particular.

This is in stark contrast to the backdrop during the pandemic, which has seen consumers’ shopping habits shift to e-commerce and other online services during the lockdown. Tech companies have started a hiring spree.

But now, workers are heading back to their offices and personal shopping is picking up. In addition, there is a growing likelihood of a recession in the US economy, higher interest rates and lukewarm demand due to rising prices, and technology companies are cutting costs.

January was filled with headlines announcing job cuts at company after company. See the list of layoffs this month – so far:

alphabet

Google’s parent company announced on Friday the layoff of 12,000 workers, which corresponds to 6% of its workforce. Alphabet has hired 50,000 employees over the past two years as the pandemic has created greater demand for its services.

But recent recession fears have driven advertisers away from their core business of digital advertising.

“Over the past two years, we’ve seen periods of dramatic growth,” CEO Sundar Pichai said in an email to employees. “To accompany and feed this growth, we hired for an economic reality different from the one we face today.”

Microsoft

The tech giant is laying off 10,000 employees, the company said in a statement on Wednesday. Globally, Microsoft has 221,000 full-time employees, with 122,000 of them based in the US.

CEO Satya Nadella said during a talk in Davos that “nobody can defy gravity” and that Microsoft could not ignore the weaker global economy.

“We are living in times of significant change, and as I meet with customers and partners, some things become clear,” Nadella wrote in a memo. “First, as we saw customers accelerate their digital spending during the pandemic, now we see them optimize their digital spending to do more with less.”

Vox Media

The publisher of news and opinion site Vox, technology site The Verge and New York Magazine announced on Friday that it is cutting 7% of its staff, or about 130 people.

“We are experiencing and expect more of the same economic and financial pressures that others in the media and technology industries have faced,” Chief Executive Jim Bankoff said in a memo.

blackrock

The layoffs are also hitting Wall Street hard. The world’s largest asset manager is shedding 500 jobs, or less than 3% of its workforce.

Today’s “unprecedented market environment” stands in stark contrast to its attitude over the last three years, when it grew its staff by around 22%. Its last major round of cuts was in 2019.

Goldman Sachs

The bank will lay off up to 3,200 employees this month amid a slump in global business activity. More than a third of the cuts are expected to come from the company’s commercial and banking units. Goldman Sachs had nearly 50,000 employees at the end of the third quarter of last year.

Coinbase

The cryptocurrency exchange announced in early January that it is laying off 950 people – nearly one in five employees in its workforce. The move comes just months after Coinbase laid off 1,100 people.

While Bitcoin has had a solid start to the year, cryptocurrency companies have been hit by significant drops in the prices of Bitcoin and other cryptocurrencies.

McDonalds

McDonald’s, which has thrived during the pandemic, is planning to cut some of its corporate staff, CEO Chris Kempczinski said this month.

“We will be assessing roles and staffing levels in parts of the organization and there will be tough discussions and decisions ahead,” said Kempszinski, outlining a plan to “break down internal barriers, grow with more innovation and reduce work that doesn’t align with priorities from the company”.

stitch fix

The online retailer of custom, subscription clothing said it plans to lay off 20% of its salaried staff.

“We will lose many talented team members across the company and we are so sorry,” wrote Stitch Fix founder and former CEO Katrina Lake in a blog post.

amazon

As the new year begins, Amazon said it plans to lay off more than 18,000 employees. Human resources departments down to Amazon Stores will be affected.

“Companies that last a long time go through different phases. They’re not in heavy headcount expansion mode every year,” CEO Andy Jassy said in a memo to employees.

Amazon has grown during the pandemic and has hired rapidly in recent years. But demand has cooled as consumers return to their offline lives and struggle with high prices. Amazon says it has more than 1.5 million employees worldwide.

At The New York Times Deal Book Summit in November, Jassy said he believes Amazon “made the right decision” regarding its rapid infrastructure construction, but said its hiring spree is a “lesson for all.”

Even as he spoke, Amazon workers who helped organize the company’s first US union at a Staten Island facility last year were picketing Jassy’s appearance outside the conference venue.

“We definitely want to take this opportunity to let you know that workers are waiting and we are ready to negotiate our first contract,” said Amazon Workers Union President Chris Smalls, calling the protest a “welcoming party ” to Jassy.

salesforce

Salesforce will cut about 10% of its workforce from its 70,000+ employees and reduce its real estate footprint.

In a letter to employees, Salesforce President and Co-CEO Marc Benioff admitted to adding a lot to the company’s headcount at the start of the pandemic.

– Clare Duffy, Matt Egan, Oliver Darcy, Julia Horowitz, Catherine Thorbecke, Paul R. La Monica, Nathaniel Meyersohn, Parija Kavilanz, Danielle Wiener-Bronner, and Hanna Ziady contributed to this story.