Massive layoffs and hiring freezes are happening across the Big Tech world. Some of the sector’s biggest names, from Amazon (AMZN) to Meta (META) to Stripe, have cut thousands of employees, while others have announced hiring freezes.
- Amazon plans to cut 10,000 jobs
- Meta (Facebook) laid off 11,000 employees
- Twitter laid off 3,700 employees
- Snapchat laid off 20% of it’s employees
- Netflix laid off 2% of it’s workforce
- Coinbase announced it will be laying off 18% of it’s workforce
So, when will this stop?
“We know when it stops when the Fed starts to become dovish,” said White.
The holidays will also have an effect on how things go from here, added White. A better-than-expected holiday season could soften the effects of the difficult macroeconomic environment moving forward. In the end, the next phase of tech layoffs will depend on the severity of any recession. Goldman Sachs (GS) recently expressed optimism that a gentler landing is possible and ZipRecruiter Chief Economist Julia Pollak said that she expects tech growth to pick up where it left off once all that is sorted out.
“I think Big Tech is going to have a period of paused headcount growth, even a dip, but overall in the aggregate it’ll be a very slight dip, and growth will resume again,” she told Yahoo Finance. “The long-term trend is still towards more people having phones and laptops, and consuming online entertainment and content… That long-term line is going right up, but there will be some fluctuations around it.”
