Multiple tech companies are either laying off hundreds of staff or freezing the hiring process amid concerns about the economy and future financial uncertainty in Silicon Valley.
Big Tech companies such as Amazon and Twitter and smaller companies such as Lyft and Stripe have had to limit hiring or announce layoffs in preparation for an economic downturn.
Here are the companies affected.
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Twitter is expected to lay off more than 3,700 employees, or half of its staff, in the next week or so, according to Bloomberg. These layoffs arrive as many companies struggle economically but appear to be connected to Elon Musk’s efforts to reorganize the company and implement his vision. There have been earlier reports alleging up to 75% of Twitter staff being laid off, but Musk and Twitter have denied those claims.
Amazon
Amazon is freezing all corporate hiring due to economic uncertainty, according to the Wall Street Journal. “We anticipate keeping this pause in place for the next few months and will continue to monitor what we’re seeing in the economy and the business to adjust as we think makes sense,” wrote Beth Galetti, senior vice president of people experience and technology at Amazon.
The company had frozen hiring at its retail divisions last month until the end of 2022.
Lyft
Executives from the ride-sharing company announced in an email on Thursday that it was cutting 13% of its workforce, or 700 jobs. The layoffs are due to what Lyft called “a probable recession sometime in the next year,” as well as rising ride-share insurance prices.
While the company is making layoffs, it does not intend to adjust its quarterly estimates in light of it.
Stripe
The payment processing company informed employees via email that it was cutting 14%, or 1,000 jobs, in an attempt to cut costs. “We were much too optimistic about the internet economy’s near-term growth in 2022 and 2023 and underestimated both the likelihood and impact of a broader slowdown,” wrote Stripe co-founders Patrick and John Collison in a Thursday letter.
Opendoor
The real estate tech company announced in a Wednesday blog post that it was letting go of 550 employees, or 18% of the company. “We did not make the decision to downsize the team today lightly but did so to ensure we can accomplish our mission for years to come,” said Opendoor CEO Eric Wu.
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Some Silicon Valley analysts see the layoffs as reflective of larger industry problems in the near term. “We’re going through a lot of uncertainty in the technology industry right now,” Albert’s List founder Albert Qian told Fox Business. “Given where our inflation report keeps going, and I think given what I’m hearing from jobseekers within my community, I think the worst is still on its way.”
