Several technology companies have recently undertaken workforce reductions, a notable shift after significant hiring during the COVID-19 pandemic when online activities surged. Now, these companies are strategically cutting jobs to manage costs and strengthen their financial positions. Here’s a look at some of the tech giants that have implemented layoffs:
1. Google
Google announced layoffs affecting hundreds of employees across its hardware, voice assistance, and engineering teams. This move aligns with cost reduction pledges made by Google and its parent company, Alphabet. Approximately a year ago, Google had announced plans to lay off 12,000 employees, constituting around 6% of its workforce.
2. Riot Games
Riot Games, the developer of the popular multiplayer game “League of Legends,” is reducing its workforce by 11%, eliminating 530 jobs. Owned by Chinese tech giant Tencent, Riot Games attributed the layoffs to overexpansion in various areas, leading to a doubling of its staff. The company is now refocusing its efforts on game development.
3. TikTok
TikTok, the social media platform owned by ByteDance, is cutting 60 jobs in its advertising and sales unit. The company has not provided specific reasons for the layoffs, indicating a strategic adjustment in response to changing business dynamics.
4. eBay
Online retailer eBay Inc. is set to cut about 1,000 jobs, representing an estimated 9% of its full-time workforce. eBay cited the need to align its workforce and costs with the pace of its business growth in a slowing economy.
5. Amazon
Amazon-owned Twitch is undertaking a workforce reduction of over 500 jobs to streamline operations and reduce costs. The CEO acknowledged the need for efficiency improvements but emphasized that the platform remains larger than necessary for its current business size.
Amazon’s audiobook and podcast service, Audible, is laying off approximately 5% of its workforce. The company’s CEO cited an “increasingly challenging landscape” as the reason behind the job cuts.
Amazon’s Prime Video and MGM Studios unit are trimming hundreds of employees as part of a strategic realignment, focusing resources on more promising areas.
6. Spotify
Music streaming service Spotify revealed plans in December to cut 17% of its global workforce, amounting to around 1,500 people. This marks the third round of layoffs in the past year, reflecting a commitment to cost reduction and profitability.
These workforce reductions highlight the evolving strategies of technology companies as they navigate changing market dynamics, streamline operations, and adjust to economic shifts.
Featured image: Megapixl © Wrightstudio
