Tech companies to lay off in 2022

Tech companies to lay off in 2022

Tech companies have been making headlines in 2022, though perhaps not for the reasons they’d like. In addition to legal wrangling over acquisitions and endless data breaches, we’ve also seen layoffs in the tech industry. Lots of them.

There aren’t many big tech companies that have managed to escape layoffs in the past year — Twitter, Tesla, Shopify, Microsoft, and Netflix have all laid off employees, some more than once.

We’re eyeing major tech layoffs in 2022, read on for a timeline of those companies cutting staff this year.

August 11th

Truepill

Job losses: around 175 employees

TechCrunch reports that Truepill, a digital health diagnostics company, has laid off a third of its workforce, around 175 employees. The company has yet to confirm the cuts, but has already had two rounds of layoffs this year.

10th of August

Link tree

Job losses: around 50 employees

Australian firm Linktree has announced it will lay off 17% of its workforce, which equates to around 50 people.

CEO Alez Zaccaria said in a LinkedIn post that the move was necessary to “emerge stronger from the economic downturn.”

Microsoft

Job losses: around 200 employees

Business Insider reports that Microsoft is laying off its Modern Life Experiences team, a division focused on professional consumers. The team was originally formed in 2018.

8th August

Soothsayer

Job losses: unknown, potentially hundreds

At the time of writing, the actual number of layoffs at Oracle is unknown, but there are indications that it is at least in the hundreds, potentially even thousands, globally.

Groupon

Job losses: 500 employees

The voucher discount site has laid off 500 employees, around 15% of its total workforce. The layoffs reportedly spanned several departments, including sales, marketing and engineering.

In a letter to employees, the company said it is focusing on “self-service merchant acquisition capabilities.”

5th August

i robot

Job losses: 140 employees

In August, iRobot, a brand of robotic vacuum cleaners, got new, but not because of layoffs. The company was bought by Amazon on August 5 and chose the same day to announce that it plans to cut 140 jobs — 10% of its workforce.

RingCentral

Job losses: 50 employees

RingCentral’s layoffs involved several senior roles and are happening in two rounds, effective September 18 and 25. Despite these layoffs, the company is actually handling the current financial situation quite well, with sales up 28% in Q2.

2nd of August

Robin Hood

Job losses: around 700 employees

There’s no doubt that it’s been a rocky year for this fintech company—it’s not their only appearance on this list. In August, it laid off 23% of its workforce, an estimated 700. The previous round of layoffs in April saw the loss of about 300 jobs.

In a blog post on the company’s website, CEO Vlad Tenev said the layoffs were due to over-recruitment in 2021 and that: “As CEO, I approved and took responsibility for our ambitious staffing trajectory – that’s up to me.” The report, which probably won’t bring much comfort to the afflicted.

July 26

Shopify

Job losses: 1,000 employees

The 1,000 Shopify layoffs in July represented 10% of the company’s total workforce. In a memo to its employees, the company said most of the layoffs were in recruiting, staffing and sales.

Spotify CEO Tobi Lutke said: “Our bet is that channel mix – the share of dollars that travel through e-commerce rather than physical retail – will permanently jump forward in five or even 10 years. Now it’s clear that the bet didn’t pay off.”

July 20th

Vimeo

Job losses: around 70 employees

The layoffs at Vimeo in July represented about 6% of the company’s workforce, with layoffs attributed to an uncertain economic future.

Vimeo CEO Anjali Sud said in a blog post: “After evaluating the challenging market conditions and uncertainty ahead, I believe this is the responsible action to take.

July 19

Tick ​​Tock

Job losses: around 100 employees

Popular social media platform TikTok has been no stranger to the headlines this year, with national security concerns once again coming to the fore. However, in July, it was seen in the public eye due to job losses where around 100 TikTok employees were cut.

July 12th

Microsoft

Job losses: around 1,800 employees

Laying off “just” 1% of Microsoft’s workforce may not seem like such a bad thing, but when you consider that the company employed 181,000 people in 2021, that’s a potential 1,810 people to cut.

Microsoft told Bloomberg: “We had a small number of role retirements today. Like all companies, we regularly evaluate our business priorities and make structural adjustments accordingly.”

July 7th

Twitter

Job loss: less than 100 people

Twitter suspended hiring during Elon Musk’s acquisition of the company, reportedly in an effort to cut costs. It actually laid off about 100 employees in July, with layoffs affecting the talent acquisition team.

Twitter is currently locked in a legal battle with Musk over its acquisition, meaning uncertainty will continue at the company in the coming months.

June 28

Tesla

Job losses: 229 employees

Elon Musk’s Tesla laid off 229 workers in June, which was to be expected given that he told Bloomberg a few weeks ago that he would cut the workforce by up to 10%.

The job losses affected employees, most of whom were reportedly data annotation specialists.

June 24th

Netflix

Job losses: 300 employees

Netflix saw its subscriber base start to decline for the first time in 2022 as the company caught up with stiff competition from Disney+ and a much-publicized crackdown on password sharing.

Slower sales growth was blamed on job losses in June, which reached 300, followed by a loss of 150 employees in May.

May 23rd

Klarna

Job losses: around 750 employees

In May, Swedish fintech company Klarna laid off a whopping 750 employees, representing 10% of its workforce, in a pre-recorded message.

Co-founder Sebastian Siemiatkowski said the announcement was “the hardest yet” and that the world “was a very different world than we are in today” when the company was drawing up its 2022 plans last year.

May 11

Caravan

Job losses: 2,500 employees

Carvana is ending 2022 with a loss of $506 million in the first quarter. In an effort to cut costs, the company laid off 2,500 employees in May, some of whom were notified via video call.

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May 5th

Cameos

Job losses: 87 employees

With the layoffs in May, Cameo laid off less than a quarter of its total workforce. She accused the company of expanding too quickly and overestimating its market in a post-pandemic world.

CEO Steven Galanis told staff: “To support demand for both fans and talent during pandemic lockdowns, Cameo’s workforce has exploded from just over 100 to nearly 400. We’ve hired a lot of people quickly, and market conditions have changed rapidly since then. Accordingly, we sized the store correctly to reflect the new reality as best as possible.”

April 28

Netflix

Job losses: 150 employees

In May, Netflix laid off 150 employees, including 25 from its fan site Tudum, which launched in December. The site was designed to give Netflix subscribers a behind-the-scenes look at the streaming giant’s shows and is run by an editorial team.

April 26

Robin Hood

Job losses: around 300 employees

In April, Robinhood’s CEO said the company cut 9% of the company’s workforce, amounting to about 300 people.

April 19

Better.com

Job losses: between 1,200 and 1,500 employees

In December 2021, Better.com acquired 900 employees and made headlines for the way the message was delivered – via a very impersonal Zoom call.

April marked the third round of layoffs at the troubled company in less than six months, with an additional 1,200 to 1,500 employees laid off.

March 9

Better.com

Job losses: 3,100 employees

Following the 900 layoffs in December due to Zoom, Better.com has laid off another 3,100 employees in the US and India.

Who will be next for technology layoffs?

Tech layoffs are ramping up very quickly in 2022, and with experts predicting a global recession on the horizon, we can unfortunately expect to see a few more in the final months of the year.

There are some notable omissions from the list so far. Meta has not made any significant layoffs so far in 2022, although reports say that internally, managers have been asked to identify potential underperforming employees due to job losses.

Likewise, Google has yet to announce any layoffs even as it slows hiring, with CEO Sunda Pichai telling employees they need to work with “more urgency and more hunger than we’ve shown in sunnier days.” If they don’t, there’s a chance they could be unlucky enough to be added to this list.

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