Most of the world’s major companies are in a wave of layoffs, especially IT giants. Tens of thousands of employees have been laid off, even immediately, by some companies. The labor sector is currently in ruins.
Cost-cutting, poor performance and financial difficulties are some of the reasons behind the major layoffs that occurred amid inflationary pressures and the global economic downturn.
In response to weak consumer spending, rising interest rates and the growing effects of inflation on global economic and financial markets, the world’s leading IT companies have frozen their hiring process or laid off employees.
Here is a list of the top 10 companies that will lay off employees in 2022 and the key reasons behind the move.
1.Goal
IT giant founded in 2004
CEO: Mark Zuckerberg
Laid off: 11,000 employees
The biggest tech layoff of 2022 came when Meta, the parent organization of Facebook, Instagram and WhatsApp, announced on November 9 that it would lay off more than 11,000 employees, nearly 13% of its workforce.
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2. Amazon
E-commerce giant founded in 1994
CEO: Jeff Bezos
Laid off: 10,000 employees
The layoffs were first announced by Amazon in mid-November and affected about 3% of its corporate employees. The company’s devices segment, which includes its Alexa products, as well as its retail and human resources businesses, were the main targets of its layoffs. It’s the largest job reduction Amazon has ever experienced.
3. Twitter
Social media platform founded in 2006.
CEO: Elon Musk
Laid off: 3700
In one of the most surprising developments of the decade, billionaire and Tesla founder Elon Musk acquired social media platform Twitter for $40 billion, making it one of the most expensive acquisitions in history. More than 3,700 employees were laid off after Musk took over the social media platform, representing more than 50% of the platform’s global workforce, including top executives and former CEO Parag Agarwal.
4.Ford
Automobile manufacturer founded in 1903.
CEO: Jim Farley
Layoffs: 3,580 employees
One of the world’s largest automakers, Ford, announced in April that it was laying off 580 of its American employees. Later, in August, the company began its second layoff, laying off more than 3,000 employees and contract workers. The corporation wants to adopt new technologies that were not previously vital to its operations, which is reportedly the cause of layoffs and redeployment of resources.
5. Best.Com
Digital home ownership company founded in 2014
CEO: Vishal Garg
Layoffs: 3,250 employees
Although substantially smaller in number of layoffs compared to IT giants, Better.com’s layoffs are probably the most controversial to date. In 2021, the company and its CEO came under intense criticism for laying off more than 900 employees in a single Zoom call. It laid off about 1,000 workers in April after laying off about 2,000 workers in March, and about 250 employees in August, about 3,250 of its employees this year alone.
6.Microsoft
US-based technology corporation founded in 1975
CEO: Satya Nadella
Laid off: 3000 employees
Source: Mike Mozart/Flickr
American tech giant Microsoft became the first tech giant to start laying off employees. He began his layoffs as part of a “realignment” process. Microsoft laid off 1,800 workers in July 2022 and 200 more workers a month later. It made its third round of layoffs in 2022, laying off nearly 1,000 workers in October.
7. BYJU’S
India-based educational technology company founded in 2011
CEO: Byju Raveendran
Laid off: 2,500 employees
BYJU’S, one of the world’s largest edtech companies, laid off 2,500 employees, about 5% of its workforce, in October. The company’s co-founder and CEO attributed the main reasons for the layoffs to macroeconomic factors and the company’s plans to become more profitable by the end of the current fiscal year. The company is currently valued at $22 million.
8. Blink
India based instant delivery service provider founded in 2013
Managing Director: Albinder Dhindsa
Laid off: Approximately 1,600 employees
Instant delivery services platform Blinkit, formerly called Grofers, laid off more than 5% of its workforce, which amounts to approximately 1,600 employees. Most of the layoffs occurred in the cities of Hyderabad, Kolkata and Mumbai. The company has cited cost-saving measures as the main reason for the layoff.
9.Unilever
UK-based consumer goods corporation
General Manager: Alan Jope
Laid off: 1500
Consumer goods conglomerate Unilever announced its decision to lay off 1,500 employees in January 2022. The decision to go global is due to its failure to acquire GlaxoSmithKline’s consumer health sector.
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10. Entrance door
Online food ordering and delivery platform founded in 2013
CEO: Tony Xu
Layoffs: 1,250 employees
DoorDash Inc., the US-based online food ordering and delivery service, is laying off about 1,250 employees, representing 6% of its total workforce. The general director of the platform has stated that the main reason for the layoffs is cost control to deal with a decrease in demand.
Key reasons behind mass layoffs
Below are some of the most common reasons behind the 2022 mass layoffs:
- The Covid-19 pandemic and the confinement that followed.
- Financial challenges caused by rising inflation and recession.
- The incompetence of the workforce.
- Modernization and reorganization of a company.
- The Russian-Ukrainian conflict that has impacted the global economy.
Global inflation is rising and amidst the growing recession and economic slowdown, large corporations have started laying off their employees to adopt profitable measures. The decline of the economy is affecting everyone around the world; However, people who work in the service sector are the ones who are severely affected by this.
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Source: ptivs2.edu.vn