Mass Layoffs Continues-Are You Ready?
The global Coronavirus (COVID-19) pandemic has had far-reaching implications on the global economy. Many businesses have been forced to lay off employees or risk facing financial ruin. Mass layoffs are a difficult but common occurrence in the business world that leaves many employees wondering how they’ll be affected and what to do should they find themselves in that spot. Many US companies have already begun mass layoffs this year unfortunately such trends eventually affects the whole globe.
Which companies are having mass layoffs this year?
Google’s Parent Company Alphabet mass layoffs:
Google‘s parent company Alphabet is cutting 12,000 jobs, its chief executive said in a staff memo shared with @Reuters. The cuts mark the latest to shake the tech sector and come days after rival Microsoft said it would lay off 10,000 workers reut.rs/3HjL6kb
Microsoft mass layoffs:
In a memo sent to employees on January 18, 2023, Microsoft CEO Satya Nadella announced that the company is making changes that will result in 10,000 jobs being eliminated through the end of March 2023. The memo also stated that while Microsoft would be eliminating roles in certain areas, they will continue to hire in key strategic areas. This makes Microsoft the latest in a swell of tech companies that have resorted to mass layoffs in reaction to growing concerns over the economic landscape.
Amazon mass layoffs:
Amazon CEO Andy Jassy announced on January 4, 2023 via an internal memo, that they plan to cut 18,000 jobs worldwide centered around corporate and technology jobs, these initial layoffs are just the beginning of Amazon’s overall plan to consolidate certain teams. After announcing plans for mass layoffs in mid-November 2022, Amazon began letting employees go on November 16th. These layoffs will make up roughly 1% of its global workforce or 3% of its corporate employees. As part of its cost-cutting strategy, Amazon is also offering a voluntary severance buy-out package to some employees who resign on their own.
DirecTV mass layoffs:
DirecTV announced that it would be laying off 10% of its management which accounts for about half of its total workforce. In a memo sent on January 6th, 2023 employees were made aware of the layoffs and reports say that the affected workers’ last day is January 20th. After losing roughly 400,000 subscribers in Q3 of 2022, DirecTV continues to struggle to keep up with streaming entertainment services.
“The entire pay-TV industry is impacted by the secular decline and the increasing rates to secure and distribute programming,” a DirecTV rep said in a statement. “We’re adjusting our operations costs to align with these changes and will continue to invest in new entertainment products and service enhancements.”
Salesforce mass layoffs:
Salesforce CEO Marc Benioff announced on January 4, 2023 that the B2B software company plans to cut 7,000 jobs, approximately 10% of its workforce, over the coming weeks.
Vimeo mass layoffs:
Popular video-hosting platform Vimeo plans to lay off 11% of their employees in January, 2023. This round of layoffs is on top of the 6% laid off in Juley, 2022.
CEO Anjali Sud stated the staff layoffs were necessary to give the company “financial flexibility,” while also noting “It is also the right thing to do to enable Vimeo to be a more focused and successful company, operating with the necessary discipline in an uncertain economic environment.”
Companies That had Mass Layoffs last year?
DoorDash mass layoffs:
On November 30th, 2022 a company spokesman for DoorDash confirmed that the company will layoff approximately 1,250 employees — representing 6% of the company’s staff. CEO Tony Xu called the mass layoff “the most difficult change to DoorDash that I’ve had to announce in our almost 10-year history.” DoorDash’s stock price is down more than 60% since January, 2022.
Meta (Facebook) mass layoffs:
On Wednesday, November 9th, 2022 after weeks of speculation, Meta announced mass layoffs for 11,000 of its employees. These cuts come after Meta shares have lost two-thirds of their value and will account for 13% of its workforce.
While Zuckerberg reportedly admitted that he was accountable for getting things “wrong” at Meta, it remains to be seen if more layoffs are on the horizon. This is the first mass layoff in Meta’s 18-year history.
Twitter mass layoffs:
On Friday, November 4th, 2022 Twitter laid off 3,700 employees — nearly half of its global employees. Twitter’s mass layoff affected many departments, including the content moderation teams, sales, and advertising departments, and engineering & development divisions. Twitter’s mass layoff of nearly 50% of its workforce is the largest mass layoff of 2022 by a tech company.
Zillow mass layoffs:
Citing continued declines in the housing market, online real estate services company, Zillow laid off 300 employees at the end of October 2022. At roughly 5% of its overall employees, these layoffs come as a result of mounting fears of an impending recession.
Peloton mass layoffs:
After Peloton had mass layoffs back in February of 2022, resulting in 20% of its workforce being laid off, the fitness company announced yet another round of layoffs (October, 2022), laying off 500 employees who made up 12% of their current workforce.
The layoffs, first reported by The Wall Street Journal, are reported as Peloton’s most recent attempt at internal restructuring as a result of the rapid drop in sales after its record growth during the at-home workout boom during the pandemic.
Snapchat mass layoffs
Snap Inc. has confirmed that the company will lay off 20% of its employee workforce, which accounts for approximately 1,300 people (September, 2022) The layoff news was confirmed by Snap spokesman on August 31st, 2022 noting the layoffs were in an attempt to bring down costs. The layoffs will be predominately from their content team, ending production for most of their original Snapchat long-form shows. Employee layoffs will also occur in the company’s hardware division.
After an eventful year of teaming up with the likes of Pandora and Splice, in early August 2022 SoundCloud CEO, Michael Weissman announced that the online music streaming community platform would be reducing its global headcount by around 20%.
Cited as part of a “significant company transformation” and a tumultuous economic landscape, SoundCloud layoffs are set to affect employees worldwide — not just here in the United States.
Netflix mass layoffs
The streaming giant’s subscriber count continues to shrink and as a result, Netflix has laid off 150 workers accounting for about 2% of its workforce in June 2022.
Citing slowing revenue as the reason for slow company growth, Netflix representatives explain that these layoffs come as the result of a business need and not due to any personal performance issues of those being let go.
Carvana mass layoffs
In one of the largest mass layoffs this year, Carvana cited a recession in auto sales as the main driver in laying off 2,500 employees in November, 2022. Reports of this mass layoff have revealed that these 2,500 Carvana employees were made aware of layoffs via Zoom.
Coinbase mass layoffs
The cryptocurrency exchange platform announced that it would be laying off 18% of its workforce in June, 2022.
CEO Brian Armstrong cited a possible recession, a need to manage costs, and growing “too quickly” during a bull market as reasons for laying off almost one-fifth of the Coinbase workforce, leading many to wonder if this is a sign of things to come for the crypto industry at large.
Compass & Redfin mass layoffs
As the housing market remains as volatile as ever and interest rates continue to rise, Compass, a real estate brokerage, announced that it would be laying off 13% of its employees in November, 2022 — this after Compass laid off 18% of it’s workforce in June, 2022.
Redfin, another real estate brokerage feeling the effects of declining home sales, announced that it will be cutting its workforce by 8% in June, 2022. These layoffs come as both companies have been struggling to keep up with the slowing housing market.
Ford Motor Company layoffs this year
Ford announced in late-August 2022 plans to lay off 2,000 salaried workers and 1,000 contract workers across the US, Canada and India — with a large percentage of these layoffs occurring in Michigan. The layoffs will be effective September 1, 2022 according to a company spokesman.
What Should I do If Am Laid off?
While you may be overwhelmed by what to do after being laid off, there are a few important things you should do immediately after.
1. Make sure you know your rights.
When you receive your layoff letter, make sure you read your employment contract and any documents you signed when you joined the company. Ensure your company has provided sufficient notice for your layoff and is willing to pay out your stipulated benefits.
2. Ask about severance pay and benefits.
Employees who are laid off are entitled to severance pay and certain benefits such as unused vacation leave and paid sick leave. Find out what other employees have received and don’t be afraid to negotiate. The higher your position and the longer you have been with your company, the more benefits you stand to receive.
3. Ask for a letter of recommendation.
When you are laid off, it is important to ask for a letter of recommendation from your department manager. This is a letter in which your manager vouches for your skills, character, and work ethic for future employers. A favorable letter may be a valuable resource when searching for alternate employment.
4. Find out about your pension benefits.
Depending on your pension plan, you may be able to access a lump-sum distribution when you leave the company. If you have a 401(k) plan, for example, you will be able to use your pension benefits before retirement age. However, be sure to speak to your pension provider if you want to withdraw money early as you may need to pay a penalty.
5. File for unemployment.
If you have been laid off, you are entitled to collect unemployment insurance benefits from the government. Benefits vary by state, so be sure to check your local state UI policies when you apply. Due to the massive increase in job losses across the U.S., many states are advising individuals to apply online.
6. Update your resume.
7. Update your health insurance.
Your employer may have provided health insurance or paid a portion of your fees. If you have been permanently laid off, you will need to take over full payment of health insurance or find an alternative that best suits your needs.
8. Take some time to process the layoff.
Even if it’s expected, a layoff can be a traumatic experience that could take a toll on your self-esteem. Take the time to make peace with what’s happened and make sure you understand that the layoff is not a reflection of your value. Refrain from making any big decisions in the days following your layoff.
If you’re experiencing any ill feelings towards your employer after being laid off, work through your emotions before diving into your job search. Writing your feelings down, talking to a trusted friend, going for a walk, or rediscovering an old hobby are some things you can do to help process a layoff.