Tech Companies Announce Fresh Job Cuts in 2023

UTC by Ibukun Ogundare · 3 min read
Tech Companies Announce Fresh Job Cuts in 2023
Photo: World Economic Forum / Flickr

Tech jobs cut include Amazon dismissing 11,000 employees, Twitter lowering headcounts by 3,700, and others.

After a series of job cuts across the tech industry last year, more companies are planning to further reduce their headcounts in 2023. This is coming after the tech space saw a surge in consumer demand at the coronavirus pandemic’s peak. Now that people are no longer forced to stay home, companies are beginning to see slower growth due to fewer sales. At the same time, the interest rates hike as ordered by the Feds to tackle inflation and the possibility of a recession, all contribute to the tech industry being hit.

One of the top tech giants, Microsoft Corporation (NASDAQ: MSFT), recently announced plans to dismiss 10,000 employees. The company said the victims would exit the company through the 31st of march in preparation for slower revenue growth. While all departments will be impacted, the sales and marketing teams will lose more staff.

CEO Satya Nadella commented:

“As we saw customers accelerate their digital spend during the pandemic, we’re now seeing them optimize their digital spend to do more with less. We’re also seeing organizations in every industry and geography exercise caution as some parts of the world are in a recession and other parts are anticipating one.”

The tech company’s job cuts began in July 2022 when it said it was letting go of 1% of its staff. This follows a massive recruitment of 181,000 people in 2021. Microsoft notified the 1% affected in July that their roles were eliminated. In October, the multinational tech company confirmed more job cuts that included about 1,000 workers. Before its latest dismissal spree, which started in 2022, the last time Microsoft announced a layoff round was in 2017, after the beginning of its new fiscal year.

Tech Firms Plan More Job Cuts

Another tech company on a fresh round of job cuts is Inc (NASDAQ: AMZN). The company announced Wednesday that it would fire over 18,000 employees, which is positioned to be its largest workforce cuts in 28 years. According to CEO Andy Jassy, workers in the human resources and store sections will be most impacted. Amazon initially planned to reduce its headcount by 10,000 workers.

American cloud-based software company Salesforce (NYSE: CRM) announced earlier this year that it is laying off more than 7,000 workers. The company plans to cut 10% of its personnel and shut down some officer spaces. Shedding more light on the decision, co-CEO Marc Benioff wrote:

“I’ve been thinking a lot about how we came to this moment. 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.”

More tech jobs cut include Amazon dismissing 11,000 employees, Twitter lowering headcounts by 3,700, and more. Stripe, Shopify (NYSE: SHOP), and Netflix (NASDAQ: NFLX) workers also felt the layoff hit.

Business News, News
Related Articles