Massive Layoffs With Social Media Companies
Key Points:
- 2022 is not very kind to social media companies.
- Why are social media companies suddenly laying off?
- The job losses are stacking up with no end in sight.
- How will these layoffs affect social media companies?
The current US public market reflects what the late billionaire Herb Kelleher once said: “Nothing kills your company’s culture like layoffs.” That’s the feeling at Meta, with 11,000+ employees let go, Twitter, over 50% of the employees, and 80% of the contracted staff.
Often companies are accused of laying off people to profit. Still, old-timers would tell you it’s a sign the economy is about to shift. In today’s video, Luis Alvarez, CEO of Alvarez Technology Group, discusses the sectors hit hardest and what recently happened in South Korea.
Why Are Social Media Companies Suddenly Laying Off?
Though it may be a social media company, by definition, it is a technology company. And when a publicly traded tech business continually sees disappointing quarterly earnings reports, something must change. Historically it is the non-essential staff that gets laid off first.
Furthermore, news reports of a looming recession grab a leader’s attention. It indicates the level to which the rising cost of living and high-interest rates are pressing firms out of money. Economists alert that such high discharges could be a problem for various other sectors.
Along with the massive layoffs at Microsoft, other tech giants, Twitter, Stripe, Salesforce, Amazon, Lyft, and many others, are seeking ways to scale back expenses and transform their companies to remain competitive. And they, too, are releasing employees permanently.
How Many Technology Jobs Ended?
Since the start of 2022, layoffs at social media and technology companies have begun. In April, the numbers rose to 17,000. Then the numbers grew to 21,000. At the time of this writing, Crunchbase news showed mid-November at 73,000+ mass job cuts. [1]
One of the factors most companies have discovered is remote workers are more expensive than in-house staff. Now that returning to the workplace is growing, there is no need to use extra equipment or specialized technology to keep a company’s networks secure offsite.
Second, wider financial wobbles have made brand names a lot more hesitant to invest in electronic advertisements– a resource of income for numerous technology firms. Also, the high rate of interest has placed an end to the cheap-money period of financial backing.
How Will These Layoffs Affect Social Media Companies?
It was the gold standard for over twenty years. Silicon Valley’s technology sector brought people worldwide to join companies like Google, Apple, and Facebook. Staff members wanted mentorship from innovative leaders, and in turn, they loyally built tech empires.
However, the last few years, specifically the pandemic, have started to reveal the gaps, cracks, and fractures in the exterior that exposed the company’s drawbacks. That would include information leakages, employee lawsuits to leadership overreach.
The appeal to work for the Amazons, Fords, and Twitters of the world has lost much of its luster. Even the Startups are feeling the pressure because their valuations have started to drop, and investors are not as eager to lend.
Alvarez Technology Group Provides Backup Plans
For over two decades, the technology space only witnessed growth and expansion. Massive social media layoffs at this level never existed. But now, employees are released in record numbers from their jobs without warning or a plan and face financial loss or ruin.
That loss could represent your company if your cybersecurity backup plans never get drafted. Alvarez Technology Group will provide the necessary steps to take if your network experiences a data breach. Contact us today or call Toll Free 1-866-78-iTeam to schedule a meeting.
[1] Tech Layoffs: US Startups And Tech Companies With Job Cuts In 2022 (crunchbase.com)
