Mass layoffs in the tech universe: from Amazon to Facebook and WhatsApp | They estimate a difficult first quarter for the sector

Big tech companies started 2023 the same way they ended 2022: by cutting staff. With the layoffs, the large firms seek to balance the losses they had in recent months to continue operating in a market that did not respond as expected. The last announcement of mass layoffs was made by Microsoft on Wednesday, when it announced that it would fire 10,000 employees.

Amazon, Meta, Twitter, Alphabet, Lyft, Robinhood and Coinbase they had already informed their employees that a cut would come in the last weeks of 2022, and that, apparently, it could continue in the first quarter of 2023.

The momentum of the pandemic gave the sector significant dividends and the possibility of a huge expansion in months where users in most countries transformed their daily actions into virtual ones. However, in the post-pandemic, especially in 2022, there was a brake on the growth of the sector, which forced companies to review their structures and investments.

The rising prices of raw materialsthe inflation world and the decline in loans They made techs need to make quick decisions in order to get on with business. Globally, the volume of layoffs in the technology industry reaches, in these first weeks of 2023, 120,000 employees.

The bulk of casualties was announced in November, when Goal, the parent company of Facebook, Instagram and WhatsApp, It started with 11,000 casualties. He followed Amazon, with 10,000 layoffs, Y Twitter, with the arrival of Elon Musk, with 3,700 dismissals. The slowdown in subscriptions and e-commerce -driven by the pandemic- took its toll on Amazon; advertising declines and commercial rejection of the metaverse caused problems for Mark Zuckerberg’s accounts; and the arrival of Elon Musk marked a before and after on Twitter.

Layoffs in Argentina

Argentina was no exception, the fintech oula confirmed in november 53 layoffs of a total of 1,300 employees. Cloud Store announced a 5% reduction of your workforce in all the countries in which it operates, which implied 17 layoffs in the country.

kavak sent telegrams to 200 employees in the country and ethermaxthe Argentine technology company that created Trivia Crack, confirmed 40 layoffs.

the chinese company didi admitted layoffs in various Latin American countries, including Chile, Mexico and Peru, as well as in Brazil, a country where it also decided to close its food delivery application. Meta also laid off staff in Argentina.

Expectations for 2023 are unclear. The scenario seems that, for the moment, it will not be very different from that experienced in 2022. Although it is estimated that the sector will continue to be “attractive” for the market.

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Mass layoffs in the tech universe: from Amazon to Facebook and WhatsApp | They estimate a difficult first quarter for the sector