While tech companies were leading the bull market of nearly 10 years, things suddenly turned upside down. While the changing order negatively affects the profitability of technology companies, managers are trying to reduce costs. In this context, layoffs are inevitable.Amazon began laying off more than 18,000 employees as of January 18, and that number is said to increase further throughout the year. These layoffs will be the largest workforce reduction in Amazon’s 28-year history. Similarly, Microsoft announced that the company will reduce the number of employees by 5 percent, that is, 11,000 employees will be laid off.
Tech giants lay off 60,000 jobs
The layoffs came at a time when growth slowed, high interest rates were rampant to combat inflation, and fears of a possible recession rose. Layoffs have begun across nearly the entire tech industry. The size of these layoffs has reached 60 thousand people.As we said above, Amazon and Microsoft have started to lay off a total of 29,000 employees. Google parent company Alphabet has laid off 230 jobs so far, but the firm is expected to make more cuts in the future. Crypto.com has announced that it will lay off one-fifth of its workforce, or about 500 people. Another giant in the crypto world, Coinbase, is laying off 2000 people. Cloud-based software company Salesforce announced earlier this month that it would part ways with 7,000 people and announced that it would scale down the business a bit. On the other hand, Facebook’s parent company Meta is parting ways with 11,000 employees. The difficult 2022 year and especially the fourth quarter for the company has made such cuts necessary to reduce costs. In addition, 3,700 people were laid off on Twitter, which was bought by Elon Musk.
Apple is the only company that hasn’t announced a layoff.
All this is just the tip of the iceberg. Many more companies such as Tesla, Snap, Netflix and Shopify have confirmed and made the layoffs. There are also tech firms that haven’t started the layoff process, and the biggest is Apple. The firm has not announced any layoffs so far. To understand the reason for this, it is necessary to look at the recruitment of the company.Like other companies, Apple hasn’t hired much in recent years. It has recruited at an annual rate of about 6 percent since 2016, which is quite low compared to other companies. Especially during the pandemic process, it did not make record recruitments like other companies and remained very modest. Of course, Apple grew much slower than others during the pandemic process, but it seems that the company has taken its steps well.
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