Amazon the Latest in Huge Tech Layoffs, Just the Start or A Healthy Rationalization?

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  • #47737
    MoneyNeverSleeps
    Participant

    In this down cycle of the economy, more specifically the growth sector, technology has been particularly hit. These companies were some of the most to
    [See the full post at: Amazon the Latest in Huge Tech Layoffs, Just the Start or A Healthy Rationalization?]

    #47842
    TradersCom
    Keymaster

    Amazon CEO Jassy:
    There will be more role reductions.
    I don’t know exactly how many roles impacted

    #48058
    TradersCom
    Keymaster

    HP $HPQ adds to Tech job cuts:
    – To slash up to 12% of its workforce (4,000 to 6,000) with sharp slump in demand for personal computers.
    – Aims to achieve $1.4 billion in annualized cost savings.
    – About $1 billion in upfront costs

    “We think that at this point it’s prudent not to assume that the market will turn during 2023,” Chief Executive Enrique Lores said in an interview.

    HP announced the layoffs as it reported an 11.2% drop in quarterly revenue to $14.8 billion. The company also posted a small net loss for the period, largely reflecting costs from a legal settlement.

    A day earlier, HP rival Dell Technologies Inc. also suggested the lull in PC buying this year would continue after a surge early in the pandemic.

    Dell late Monday reported a 6% drop in overall revenue for the company’s third quarter, including a 17% drop in the unit that includes sales of laptops and desktops to consumers and commercial clients.

    Dell expects revenue from PC sales to fall at an even steeper rate in the fourth quarter from the same period a year earlier, Chief Financial Officer Thomas Sweet said on a Monday earnings call.

    “We expect ongoing global macroeconomic factors, including slowing economic growth, inflation, rising interest rates and currency pressure, to weigh on our customers,” he said.

    The results come a month after data showed that PC demand in October slid at its fastest pace in more than two decades.

    https://www.wsj.com/amp/articles/pc-demand-is-expected-to-soften-further-as-spending-patterns-shift-11669141037?mod=hp_lead_pos6

    #50736
    MoneyNeverSleeps
    Participant

    Amazon increases previously announced job cuts to more than 17,000 employees. $AMZN announced they would be laying off 10,000 employees 2 mths ago. The assumption was they were waiting for the holiday season to pass.

    #51040
    Truman
    Participant

    According to tracking website “layoffs.fyi,”

    Over 150K tech workers were fired in 2022, and that number is poised to grow this year.

    Companies in the industry that have shed employees include Airbnb (ABNB), Booking Holdings (BKNG), Carvana (CVNA), Cisco (CSCO), Groupon (GRPN), HP (HPQ), Lyft (LYFT), Meta (META), Netflix (NFLX), Peloton (PTON), Twitter, Uber (UBER) and Zillow (ZG).

    Note $AMZN has 1,544,000 employees, laying off 18,000. 1 tenth of a percent. .001 ‘headlines’fear!

    Bloated payrolls of $META and $CRM clearing house

    #51041
    Truman
    Participant

    Salesforce (CRM) this week said it would cut 10% of its workforce, and close some offices, leading to $1.4B-$2.1B in charges for the company and around 8,000 layoffs.

    “The environment remains challenging and our customers are taking a more measured approach to their purchasing decisions,” Salesforce co-CEO Marc Benioff wrote in a letter to employees.

    #51243
    TradersCom
    Keymaster

    Alphabet Unit Verily to Trim More Than 200 Jobs

    CEO of healthcare unit announced the layoffs as part of a broader reorganization

    Verily Life Sciences, a healthcare unit of Alphabet Inc., is laying off more than 200 employees as part of a broader reorganization, the first major staff reductions to hit Google’s parent following a wave of layoffs at other technology companies.

    The cuts will affect about 15% of roles at Verily, which will discontinue work on a medical software program called Verily Value Suite and several early-stage products, CEO Stephen Gillett said in an email to employees Wednesday. Verily has more than 1,600 employees.

    Verily oversees a portfolio of healthcare projects largely focused on applying data and technology to patient treatments, including a virtual diabetes clinic and an online program for connecting research participants to clinical studies. 

    “We are making changes that refine our strategy, prioritize our product portfolio and simplify our operating model,” Mr. Gillett wrote in the email. “We will advance fewer initiatives with greater resources.”

    Originally known as Google Life Sciences, Verily is one of the largest businesses other than Google under the Alphabet umbrella, part of a group of companies known as “Other Bets.” Alphabet had 186,779 employees at the end of September last year, according to company filings.

    Verily has recently looked to pare back a once sprawling collection of projects spanning insurance to mosquito breeding. Last year, the company hired McKinsey & Co. and Innosight to do consulting work, The Wall Street Journal reported.

    Mr. Gillett took over as Verily CEO this month, succeeding the well-known geneticist Andy Conrad,
    who moved to executive chairman.

    “As we move into Verily’s next chapter, we are doubling down on our purpose, with the goal to ultimately be operating in all areas of precision health,” Mr. Gillett wrote to employees on Wednesday. “We will do this by building the data and evidence backbone that closes the gap between research and care.”

    https://www.wsj.com/amp/articles/alphabet-unit-verily-to-trim-more-than-200-jobs-11673466950?mod=hp_lead_pos7

    #51634
    TradersCom
    Keymaster

    More Big Tech Job Cuts:

    Microsoft plans to announce layoffs today, according to WSJ

    $MSFT 241.55 +1.20 (+0.50%) Pre-Market

    #53835
    MoneyNeverSleeps
    Participant

    Today’s latest tech company layoff prize goes to:

    Sweden’s Ericsson to lay off 8,500 workers as part of cost-cutting plan

    A minor 8% of Ericsson’s staff of 105,529 worldwide.

    ADR $ERIC 5.48 -0.11(- 1.97%)

    STOCKHOLM, Feb 24 (Reuters) – Telecom equipment maker Ericsson (ERICb.ST) will lay off 8,500 employees globally as part of its plan to cut costs, a memo sent to employees and seen by Reuters said.

    While technology companies such as Microsoft (MSFT.O), Meta (META.O) and Alphabet (GOOGL.O) have laid off thousands of employees citing economic conditions, Ericsson’s move would be the largest layoff to hit the telecoms industry.

    “The way headcount reductions will be managed will differ depending on local country practice,” Chief Executive Borje Ekholm wrote in the memo.

    “In several countries the headcount reductions have already been communicated this week,” he said.

    On Monday, the company, which employs more than 105,000 worldwide, announced plans to cut about 1,400 jobs in Sweden.

    While Ericsson did not disclose which geography would be most affected, analysts had predicted that North America would likely be most affected and growing markets such as India the least.

    The company said in December it would cut costs by 9 billion crowns ($880 million) by the end of 2023 as demand slows in some markets, including North America.

    “It is our obligation to take this cost out to remain competitive,” Ekholm said in the memo. “Our biggest enemy right now may be complacency.”

    Many telecom companies had beefed up their inventories during the height of the pandemic which is now leading to slowing orders for telecom equipment makers.

    https://www.reuters.com/business/media-telecom/ericsson-lay-off-8500-employees-memo-2023-02-24/

    #55272
    MoneyNeverSleeps
    Participant

    Does seem like Groundhog Day over at Amazon

    CEO Jassy announced that the company intends to eliminate about 9,000 more positions over the next few weeks.
    $AMZN 97.66 ▼ -1.29 (-1.30%) today

    “Given the uncertain economy in which we reside, and the uncertainty that exists in the near future, we have chosen to be more streamlined in our costs and headcount,” said CEO Andy Jassy in a statement.

    The company previously said it was slashing 18,000 positions.

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