7 companies lay off thousands of workers

DC Studio / Shutterstock.com

The nation is preparing for a recession. The US Federal Reserve continues to steadily raise interest rates to fight inflation, and many experts fear an economic slowdown will be an unfortunate side effect of this campaign.

CEOs of large companies in particular are concerned that the economy will soon contract. A staggering 86% of CEOs surveyed in October predicted a recession in 2023. And they’re wasting no time preparing for tough times.

At least seven large companies have recently announced layoffs of 1,000 or more employees. Some of these companies are trying to restructure, while others are seemingly getting lean and mean before a possible downturn.

This is followed by an appeal from companies that are downsizing their workforces.

Amazon

7 companies lay off thousands of workersJanet Julie Vanatko / Shutterstock.com

Amazon recently told employees that the company plans to lay off around 10,000 employees. According to the Seattle Times, the cuts are expected to affect multiple areas of the business, including appliances, books, staff and stores.

The Times quotes an anonymous former employee who was fired from the equipment department as saying a manager told her and her colleagues their team had become “a little bloated”. The layoffs are expected to last through 2023.

Carvana

CarvanaJonathan Weiss / Shutterstock.com

Online used car dealer Carvana is laying off 1,500 employees, or around 8% of its workforce.

In an email to employees, CEO Ernie Garcia said the company is making cuts due to economic conditions such as higher financing costs and delayed car purchases.

Garcia reportedly wrote to employees that the company “could not accurately predict how this was all going to play out and the impact it would have on our business.”

Cisco systems

Cisco signVarious photographs / Shutterstock.com

Networking company Cisco Systems plans to cut more than 4,000 jobs, or about 5% of its workforce.

The cuts are part of a proposed $600 million restructuring. However, the company notes that it will hire new jobs as part of the reorganization and plans to end the current fiscal year with roughly the same number of employees as before the layoffs.

hp

Hewlett-Packard - HP FranceHJBC / Shutterstock.com

Information technology company Hewlett-Packard has announced layoffs that could result in between 4,000 and 6,000 employees getting their pink slips over the next three years.

According to a press release from HP, the job cuts are part of a plan to achieve savings “through digital transformation, portfolio optimization and operational efficiencies”.

meta platforms

Meta Headquarters – Menlo Park, Californiaaskarim / Shutterstock.com

On Nov. 9, Meta Platforms Inc. — which owns Facebook, Instagram and WhatsApp — announced it was laying off 11,000 employees, or about 13% of its workforce.

In a letter to employees, CEO Mark Zuckerberg wrote that the move aims to make Meta “a leaner and more efficient company.”

A hiring freeze will remain in place until the first quarter of 2023. By the end of next year, Meta will be “roughly the same size or even a slightly smaller organization than we are today,” Zuckerberg wrote.

stripes

stripesarrarorro / Shutterstock.com

Online payments company Stripe announced in early November that it was laying off about 14% of its employees. According to a CNBC report:

“Stripe said the headcount will be reduced to about 7,000 employees, meaning the layoffs will affect about 1,100 people. A Stripe spokesperson was not immediately available to provide the exact number of employees affected.”

In a memo to employees, CEO Patrick Collison said the layoffs were necessary because of rising inflation, fears of an impending recession, higher interest rates and other factors.

Twitter

Twitter buildingMichael Vi / Shutterstock.com

In what is perhaps the most well-known round of layoffs, new Twitter owner Elon Musk has significantly reduced the company’s workforce.

According to a CNN report:

“Musk appeared to see the sweeping layoffs as necessary for a company that, like other social media companies prior to its acquisition, was facing ‘revenue woes’ as advertisers reconsider spending amid recession fears.”

The layoffs — and an estimated 1,000 layoffs since Musk took over — mean Twitter’s roster has shrunk from 7,500 to about 2,700.

But the trend to slim down Twitter may be over. At least one report suggests the company is now back in hiring mode.