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From Salesforce and Beyond Meat to Meta and Twitter, big names across a number of sectors have announced major layoffs in October and November.
Salesforce Inc.
CRM,
laid off hundreds of employees from its sales team, according to news reports, as the tech sector continues to wrestle with a challenging economic environment.
Axios reports that the San Francisco-based company laid off several hundred workers. “Our sales performance process drives accountability,” said a Salesforce spokesman, in a statement emailed to MarketWatch. “Unfortunately, that can lead to some leaving the business, and we support them through their transition.”
Think you had a bad week? Salesforce, cloud companies had some of their worst weeks ever
As of February 2022, the customer relationship management software company had over 78,000 employees globally. Citing a source, Barron’s reported that the recent job cuts represent less than 1% of the company’s workforce.
RingCentral
RingCentral Inc.
RNG,
joined the list of tech companies making layoffs, when it announced a plan to cut 10% of its workforce amid a broader plan to cut costs amid a deteriorating economic environment. The cloud-based communications company’s stock jumped on news of the layoffs and RingCentral’s third-quarter earnings beat.
In October RingCentral was added to the list of “zombie” stocks compiled by equity research firm New Constructs.
See Now: RingCentral added to ‘zombie’ stocks list by equity research firm New Constructs
The research firm, which uses machine learning and natural language processing to parse corporate filings and model economic earnings, described RingCentral as a “cash incinerator” at risk of declining to $0 per share.
Redfin
Redfin
RDFN,
announced another round of layoffs, with CEO Glenn Kelman saying that the company is laying off 13% of its staff, or 862 employees. The real-estate brokerage also announced the closure RedfinNow, the company’s service that bought homes for cash and resells them to buyers on the market.
‘The housing market will get smaller in 2023,” Kelman wrote in an email to staff. “A layoff is awful but we can’t avoid it,” he added.
See Now: ‘A layoff is awful but we can’t avoid it:’ Redfin lays off 13% of staff as housing market slows down
In June Redfin laid off 8% of staff, citing “years” of “fewer home sales.”
Beyond Meat
Beyond Meat Inc.
BYND,
made fresh job cuts in October, slashing about 19% of its total global workforce. The company also issued a revenue warning amid softness in the plant-based meat category, increased competition and inflation pressures. Beyond Meat said it will book a roughly $4 million one-time cash charge in the third quarter to cover the job cuts.
The cuts followed a 4% workforce reduction in August.
See Now: Beyond Meat’s stock edges lower on sales drop, growing losses
The pressures on the plant-based food company continue. In November Beyond Meat reported a big drop in third-quarter revenue, escalating losses and tepid revenue guidance.
Meta
Facebook parent Meta
META,
is cutting 11,000 employees, or about 13% of its workforce, in the first layoffs in the company’s 18-year history. Chief Executive Mark Zuckerberg has taken responsibility for the cuts, admitting to expanding the company too quickly amid a pandemic-fueled surge in revenue.
“Not only has online commerce returned to prior trends, but the macroeconomic downturn, increased competition, and ads signal loss have caused our revenue to be much lower than I’d expected,” he wrote in a post on the company’s public newsroom. “I got this wrong, and I take responsibility for that.”
Zuckerberg wrote that while Meta will be making reductions in every area across both its Family of Apps and Reality Labs segments, some teams will be affected more than others. The cuts to Reality Labs will be closely watched for any potential impact on the company’s bold metaverse strategy, which is handled within the segment.
Meta’s job cuts came hot on the heels of layoffs at Twitter that affected about half of that company’s 7,500 employees. In late October, after a monthslong struggle, Elon Musk bought Twitter for the inflated price of $44 billion and quickly launched an effort to slash costs at the unprofitable company.
Before the layoffs hit, Twitter faced a class-action lawsuit over lack of notice to employees.
Also read: ‘I just killed it’: Musk scraps Twitter’s gray ‘official’ label just hours after its launch
The cuts, which came just before the midterm elections, have also sparked concern about the microblogging site’s ability to fight misinformation in the postelection period.
Lyft
In November, Lyft Inc.
LYFT,
announced plans to lay off 13% of its workforce, or about 683 employees. The ride-hailing company’s executives described the move as a proactive step as they eye a possible recession and plan for the coming year.
Now read: Lyft lays off 13% of workers in second round of cuts this year, maintains financial guidance
The latest layoffs follow 60 job cuts in July; a hiring freeze through the end of the year was also implemented in September. In April 2020, in the early days of the pandemic, Lyft laid off nearly 1,000 employees and put another 288 on furlough.
Intel
In October, Intel Corp.
INTC,
announced plans for job cuts as it reported its third-quarter results. The chip maker said it is focused on driving $3 billion in cost reductions in 2023. “Inclusive in our efforts will be steps to optimize our headcount,” chief executive Pat Gelsinger said during a conference call with analysts to discuss the third-quarter results.
Now read: Intel reportedly to start ‘targeted’ layoffs in November
Intel is said to be planning “targeted” layoffs in November. It is not yet clear how many of the company’s 121,000-plus employees will be affected.
Snap
Some companies confirmed their layoffs earlier this year. In August, Snap Inc.
SNAP,
announced job cuts as part of a “broader strategic reprioritization” that would see the social-media company focus on cost cuts and aim for profit and positive free cash flow. The company said it would cut about 20% of its full-time employees.
“The scale of these changes vary from team to team, depending upon the level of prioritization and investment needed to execute against our strategic priorities,” said Snap Chief Executive Evan Spiegel in a statement. “The extent of this reduction should substantially reduce the risk of ever having to do this again, while balancing our desire to invest in our long-term future and reaccelerate our revenue growth.”
Related: Snap stock rallies more than 10% after company confirms layoffs, launches restructuring
The Verge reports that Snap had more than 6,400 employees prior to the job cuts.
Robinhood
Also in August, Robinhood Markets Inc.
HOOD,
announced plans to cut its workforce by 23%. The company, which was a launchpad for 2021’s meme-stock phenomenon, cited a weaker economic environment and depressed trading activity.
Also read: Robinhood to lay off 23% of its workforce, with CEO admitting ‘this is on me’
In April, Robinhood cut about 9% of its workforce. At that time, CEO Vlad Tenev wrote in a blog post that the company had grown from about 700 employees at the start of 2020 to nearly 3,800.
Coinbase
In July, Coinbase Global Inc.
COIN,
announced plans to lay off 18% of its employees, just two weeks after extending a hiring freeze and rescinding some job offers. In a blog post, CEO Brian Armstrong said the decision was made “to ensure we stay healthy during this economic downturn.”
Now read: Why Coinbase is laying off 18% of employees and what it means for crypto
The crypto exchange had expanded rapidly, from 1,250 employees at the beginning of 2021 to 4,948 at the end of March 2022. “I am the CEO, and the buck stops with me,” said Armstrong, adding that the company grew too rapidly.
Shopify
Also in July, Shopify Inc.
SHOP,
announced plans to lay off 10% of its staff, with the e-commerce company citing an evolving business landscape. In a blog post, Chief Executive Tobi Lütke explained that, as a result of the pandemic, Spotify had bet that the share of dollars going through e-commerce rather than physical retail would permanently leap ahead by five or even 10 years. “It’s now clear that bet didn’t pay off,” he wrote. “What we see now is the mix reverting to roughly where pre-COVID data would have suggested it should be at this point.”
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