Unprecedented Wave of Layoffs Hits the Global Tech Sector
A wave of layoffs has hit the global tech sector, impacting over 238,000 employees across 1,030 tech companies. Major players like Epic Games, Cisco, Roku, Microsoft, and Niantic have announced job cuts. Explore the reasons behind these layoffs and t...
Troy D. Hanson
September 29, 2023
Since the beginning of 2023, the global technology sector has faced an extensive wave of layoffs, with over 238,000 employees losing their jobs, according to data compiled by Layoffs.fyi.
Tech Companies Affected
A staggering total of 1,030 tech companies have contributed to this wave of layoffs, resulting in the termination of 238,306 employees. Comparatively, in 2022, only 1,024 tech companies laid off approximately 154,336 employees.
Epic Games Inc.: The Latest Casualty
The parent company of the popular game "Fortnite," Epic Games Inc., recently joined the ranks of the companies announcing layoffs. They revealed plans to lay off 16% or 830 employees from their workforce. The majority of these cuts will occur in teams not directly involved in core development activities.
Cisco Systems Inc.: Downsizing in Silicon Valley
Networking giant Cisco Systems Inc. is also included in the list of tech companies making cutbacks. They plan to lay off 350 employees in Silicon Valley next month, marking their latest round of job cuts. The filing with California's Employment Development Department disclosed this information.
Roku Inc.: Streamlined Operations
Roku Inc., a leading streaming company, has decided to downsize by letting go of 10% of its workforce. As of the end of 2022, Roku employed approximately 3,600 individuals, as stated in their most recent annual filing.
Microsoft Corp.: Further Reductions
In addition to the 10,000 job cuts announced earlier this year, software giant Microsoft Corp. recently announced more job losses in July.
Niantic Inc.: Layoffs in the Pokemon Universe
The creators of the immensely popular "Pokemon Go" game, Niantic Inc., sadly announced 230 layoffs in June.
This wave of mass layoffs in the global tech sector has sent shockwaves throughout the industry, raising concerns about the state of the economy and future employment opportunities.
Tech Companies Announce Job Cuts in 2023
In June, several well-known tech companies revealed plans to lay off a significant number of employees. Robinhood Markets Inc. announced that it would be reducing its full-time staff by approximately 7%, equating to about 150 individuals. A spokesperson for Robinhood emphasized that the company aims to enhance operational efficiency and adapt to changes in volume, workload, and organizational structure. Similarly, Spotify Technology SA disclosed that it would be letting go of around 200 employees, which accounts for approximately 2% of its workforce.
These two companies were not alone in their staffing adjustments. Numerous other tech giants have also made announcements regarding job cuts in 2023. Meta Platforms Inc., Amazon.com Inc., LinkedIn, Electronic Arts Inc., Palantir Technologies Inc., Twilio Inc., DocuSign Inc., Salesforce Inc., SAP, Zoom Video Communications Inc., eBay Inc., Dell Technologies Inc., PayPal Holdings Inc., International Business Machines Corp., Intel Corp, and Alphabet Inc. have all taken steps to restructure their workforce.
The dynamics of the tech industry continue to evolve, prompting these companies to make strategic decisions to ensure their competitiveness and long-term success. While these job cuts may pose challenges for those affected, they also represent opportunities for these tech companies to reallocate resources and optimize their operations as they navigate the ever-changing landscape of the technology sector.