It appears that major technology companies, both Tier 1 and Tier 2, are targeting a 25% reduction in workforce. Airbnb implemented a 25% cut earlier, and now Facebook has also reduced their staff by 25%. With a total employee count of 86K, Facebook has so far laid off 21K individuals. Additionally, this wave of layoffs seems to be synchronized across all firms. The approach to downsizing is strikingly similar among big tech companies. Amazon had a workforce of 330K corporate employees. They conducted layoffs in three phases: 18K in the first wave, 9K in the second wave, and 20K during the 2022 URA. This resulted in a total of 47K layoffs, which equates to a 14% reduction in their overall corporate staff. In order to reach the 25% reduction goal, Amazon needs to lay off an additional 27K employees. If they halt new headcounts, including backfills for the URA, by the 2023 performance cycle, they would eliminate 16K more positions. However, this would still leave them 10K short of their target. Unless 10K more positions are reduced through RTO measures, a third round of layoffs may be inevitable.
For a second I thought you said Target laid off 25% lol
2 companies laid off 25% of workforce, therefore every other company will lay off 25% of their workforce. Fantastic logical reasoning mate, bravo! 👏
You make these snarky ass remarks but tech companies do, in fact, take cues from one another to decide what the industry, market, and they themselves should do as a result. They overhired in 2020-2021 because they saw other companies doing it and didn’t want to miss the boat on talent and now they’re all downsizing together. A part of it is done individually but the timing being similar isn’t really a coincidence.
Hopefully we don’t follow Twitters lead
Solid analysis based on a sample of size 1
Another assumption you made is that Amazon will keep the URA rate consistent with that of 2022. This likely is false, URA will likely be 10% this year with > 7.5% not making it. That lands us at 22k additional layoffs instead of the 16k you quoted, which leads to a much smaller 4K discrepancy between your numbers. Then we have the beast that is RTO that we haven’t accounted for (10k resignations?)
Bard tier analysis
😂
There isn't some backroom collusion going on at these companies or even a wide benchmarking via monkey-see monkey-do. What's going on is that interest rates, GDP projections, and other macroeconomic metrics have a significant impact on the financial modeling and strategic planning at companies. Tech is highly-focused around consumer products (or services customers who are consumer product oriented), so it's not a surprise that when the economy contracts, they need to make cuts. I think what's basically happening is everyone is using similar financial modeling principles and similar metrics and the output is leading them to the same conclusions. Those same metrics led them to hire aggressively in the boom times. This is what working through a downmarket feels like and despite the tight talent market over the last decade, tech isn't exceptional to market forces.
Swear to god some if you have no management potential
Source: my wife’s boyfriend
You know in ur heart, big tech is full of fat. People are paid to do nothing and coast. Products built are sub standard and most importantly are not profitable. True or not more layoffs are coming.
Actually, it's OP's wife's bf's second gf who sleeps with me