Tech layoffs surge in December, Etsy, Zulily and more initiate job cuts
Etsy laid off 225 employees, the second highest number of layoffs this month after Spotify which sacked close to 1500 of its staff.Economic uncertainty and over hiring during the pandemic boom, are among the most commonly cited reasons companies laid off their employees.Company Layoffs August 2024
It seems 2023 has been a particularly stressful year for professionals owing to the spate of layoffs worldwide. The year began with Amazon, Google, Microsoft and Salesforce 1,06,950 employees in January. Several more companies joined the league and announced job cuts throughout the year. From organisational restructuring, cost cutting, to adoption of AI and other new technologies, companies justified their decisions with an assortment of reasons.Company Layoffs August 2024
The month of December was marked by layoffs from the popular music streaming service, Spotify. The company laid off close to 1,500 employees which is 17 per cent of its workforce. CEO Daniel Ek said that the company was taking “substantial action to rightsize our costs”. He said that the company had hired too many employees during 2020 and 2021. Spotify was followed by companies such as Twilio, DwellWell, Zulily, etc. Here’s a list of companies that have laid off staff this month.
Also Read | Xbox Cloud Gaming app comes to Meta Quest VR headsets, lets you play hundreds of games
Etsy sacks 225
The latest to join the long list of companies that are laying off staff is Etsy. The online marketplace giant has laid off 11 per cent of its workforce which is about 225 employees. CEO of the company Josh Silverman, in a letter to employees, said that the company has ‘more than doubled its size since 2019’ adding that today’s macroenvironment and competitive realities call for sweeping changes. The e-commerce giant is reportedly looking towards restructuring its business and streamline costs.
Zulily
Earlier this month, it was announced that US-based online retailer Zulily was planning to layoff close to 800 employees across Washington, Nevada, and Ohio. The layoffs are expected to begin from early February. Reportedly, the company is closing three offices and two warehouses.
Also Read | Tesla recalls nearly all vehicles on US roads over lack of Autopilot safeguards
Simplylearn
The Bengaluru-based edtech startup has reportedly sacked close to 200 employees citing poor performance, according to a report in startupstorymedia.com. The job cuts have impacted employees across various levels. Reportedly, the sales team at Simplylearn has been severely impacted by the layoffs. The marketing and operations departments are also affected. The company initiated downsizing earlier this month.
Meanwhile, companies such as TuSimple, and Navan in the US have laid off close to 150 employees this month. In November, VMware, a software company and real-estate firm Zillow fired close to 2000 employees in the US.
Why are companies laying off employees?
Economic uncertainty and over-hiring during the pandemic boom, are among the most commonly cited reasons this year among companies that laid off their employees. During lockdown, the demand for many digital services skyrocketed and this translated into massive growth for tech firms. As a result, they overhired sometimes even increasing the headcounts by up to 50 per cent in some cases. Oddly enough, the growth slowed in 2022 and the economic prospects of 2023 appeared bleak.
High inflation, rising interest rates, and talks of potential recession throughout the year signalled more trouble for companies. Many tech giants have been witnessing a decline in revenue and profits. This forced them to aggressively cut costs. The imminent layoffs helped these companies in reducing operating costs and right-size workforces. While the job cuts are painful, most companies undertook it to survive an economic slowdown.
