These Companies Have Announced the Biggest Layoffs in 2023 (2023)

Amid an avalanche of layoffs in some sectors of the U.S. job market, particularly across technology, retail, and finance sectors, Swedish music streaming giant Spotify announced Monday that it would cut 6% of its global workforce.

The news comes day after Google’s parent company Alphabet announced on Jan. 20 that it would cut 12,000 jobs.

The Google layoffs are the company’s largest ever, accounting for 6% of the company’s global personnel, and comes after a decision to defer a portion of employees’ January bonuses to be paid later in the year. Sundar Pichai, Alphabet’s chief executive, shared a memo on Friday via the company’s website citing ill-hiring decisions over the past two years, which aimed to “match periods of dramatic growth.” He said, “To match and fuel that growth, we hired for a different economic reality than the one we face today.”

His memo added that domestic employees would receive a severance package worth 16 weeks of salary and two weeks off additional pay for every year served, as well as six months worth of healthcare and immigration support. Meanwhile, employees outside the U.S. will be supported “in line with local practices.”

Spotify and Alphabet’s announcements build on the overall 6% increase in job cuts recorded in the U.S. during 2022, and places the companies among a growing number of technology giants resorting to layoffs—including Amazon, Microsoft, and Meta—that experts say were driven by misjudging pandemic booms for sustainable growth. This resulted in over 154,843 jobs being cut by technology firms last year, according to Layoffs.fyi, a website that tracks job cuts across the industry. So far, in 2023, an additional 55,970 employees have been laid off by technology firms.

“In 2020 and 2021, technology companies went on a hiring spree, fueled by low interest rates and demand for tech products while people were staying at home during the pandemic,” Roger Lee, the creator of Layoffs.fyi, tells TIME. “Now that we’re in a completely opposite environment, these same tech companies are performing layoffs to undo their overhiring from the past couple of years.”

(Video) Google slashes 12,000 jobs, as tech sector layoffs continue

John Van Reenen, the Ronald Coase School Professor at the London School of Economics, reiterates that the “general economic situation” is one of the key driving forces behind major layoffs.

“With the war in Ukraine and all the world in, or entering into recession, their companies are trenching as demand is falling, belt tightening is going on,” he says. “One part of this is just a general reflection of what’s happening in the economic situation around the world.”

Van Reenen notes that the share prices of tech firms over the last year have all “taken quite a significant hit” and mass layoffs reflect company’s attempts to regain control of this.

While the technology industry remains the hardest hit, Lee says, other industries have also announced sizable layoffs. Below are some of the largest employee layoffs that have taken place in 2023 so far.

More from TIME

Microsoft

On Jan. 18, Microsoft announced plans to eliminate 10,000 jobs, or around 4.5% of its 220,000 person global workforce. The software company’s chief executive officer, Satya Nadella, wrote in a blog post that the software titan, which has a market value of $1.78 trillion, was affected by global economic stagnation.

Amazon

In early January, Amazon CEO Andy Jassy revealed that the company was cutting 18,000 jobs, including layoffs in November. The cuts are less than 1% of the global workforce, but would amount to about 6% of corporate jobs. Sizable cuts were first proposed in November and, according to reports from the New York Times and the Wall Street Journal, at the time, the company estimated that they would eliminate 10,000 posts.

(Video) Microsoft joins list of tech companies to announce sweeping layoffs

According to the New York Times, an anonymous source in Amazon’s Human Resources department said the number of layoffs was fluid and could be changed once business plans were finalized. Spurred on by pandemic success, the company’s global workforce grew exponentially from 798,000 in the final quarter of 2019 to 1.6 million by the end of 2021.

Salesforce

Salesforce announced in early January that it planned to lay off 10% of its 80,000 person workforce, or around 8,000 individuals. “The environment remains challenging, and our customers are taking a more measured approach to their purchasing decisions,” Salesforce CEO Marc Benioff said in a memo to employees. (Benioff is TIME’s owner and co-chair.)

Spotify

The Swedish music streaming giant said Jan. 23 that it would cut 6% of its global workforce, estimated to be around 400 employees, as part of a management reshuffle. CEO Daniel Ek said the cuts were part of a management reshuffle and “to bring our costs more in line.” Spotify’s operating costs were double its revenue growth last year.

Vimeo

American video hosting platform Vimeo also launched a round of layoffs at the very start of the year. In a note to staff that was later shared online, CEO Anjali Sud said the layoffs would affect 11% of the company’s workforce, across departments like sales and research and development. Vimeo reported 1,219 workers in its December 2021 annual regulatory filing.

In November 2022, Vimeo reported $108.1 million in revenue during the third quarter and roughly 1.6 million paying subscribers. Sud said the decision was the “right thing to do to enable Vimeo to be a more focused and successful company, operating with the necessary discipline in an uncertain economic environment.”

Goldman Sachs

Away from technology, Goldman Sachs announced Tuesday that it will spend $275 million on the 3,200 job cuts announced in January. David Solomon, the bank’s chief executive said “we feel deeply for the individuals that were impacted by these reductions” and that they were “extremely dedicated and talented individuals.” The news marked the bank’s largest staff reduction since the 2008 financial crisis, when they recorded the same number of layoffs.

Bed Bath & Beyond

Retail chain Bed Bath & Beyond is particularly affected by the economic downturn, as it seeks buyers or lenders to avoid bankruptcy. In a bid to cut costs due to depleting sales figures, the retailer said on Jan. 18 that it would slash an additional $80 million to $100 million across the company, including an unspecified number of layoffs. The company’s shares are down by more than 72% over the past 12 months.

Sales dropped by 33% to $1.26 billion for the three months ending Nov. 26 from $1.88 billion the previous year. Additionally, sales recorded in stores that have existed for at least a year dropped by 32%. The company previously announced in September that they would close 150 stories and cut 20% of its workforce to save money.

(Video) Google, Amazon and other major tech companies lay off thousands

Blackrock

The world’s largest asset management company, BlackRock Inc., cut 500 global jobs as the result of a $91 million restructuring at the end of 2022. Last year’s full-year revenue was down 8% to $17.9 billion and earnings per share was down 16% year over year to $8.93. The company’s stocks also fell by the highest amount since the 2008 crisis.

BlackRock had 19,900 employees as of Sept. 30, according to a filing with the U.S. Securities and Exchange Commission. Per Reuters, layoffs will affect less than 3% of employees.

The Bank of New York Mellon Corporation

On Jan. 13, Reuters reported that the Bank of New York Mellon Corp (BK.N) is planning to cut around 3% of its workforce in the year ahead. Approximately 1,500 jobs of the bank’s total reported headcount, which was 51,700 at the end of 2022, will be cut. The announcement brought company shares up by 2.4% at the time, as high interest rates and inflation continue to shake the financial services industry.

Coinbase

Meanwhile, 950 employees lost their jobs at Coinbase, according to a Jan. 10 announcement by the cryptocurrency exchange platform. This makes up 20% of the company’s workforce as they aim to cut operating expenses by 25%. This is a second round of layoffs for Coinbase, who let 18% of its workforce go in June.

Will these layoffs continue in the long term?

Despite the alarming increase in job losses across these sectors, Van Reenen is hopeful that they are temporary. “The U.S. economy has been quite resilient compared to expectations. The labor markets held up reasonably well and inflation is coming down much faster in the U.S. than it is in Europe,” he says.

But stability remains uncertain due to global factors, he says, noting the ongoing conflict in Ukraine, and China’s influence over the supply chain—especially as the nation battles mounting COVID-19 cases and a lack of medication.

As for the blows technology firms have incurred, Van Reenen believes that in the long run, “the whole world economy is becoming more high-tech and using more AI so the long term prospects of companies like Alphabet are optimistic. But in the short term there’s gonna be bumps on that road.”

Correction, Jan. 20

(Video) Tech companies are laying off workers to ‘get ahead’ of economic headwinds: Expert


The original version of this article misstated the portion of Amazon’s workforce that was laid off. It was less than 1% of the global workforce, not 5%.

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Write to Armani Syed at armani.syed@time.com.

FAQs

Who is laying off employees 2023? ›

Companies with layoffs in 2023:

Google (Alphabet) layoffs: 6% of workforce laid off (January, 2023) Microsoft layoffs: 4-5% of workforce laid off (January, 2023) Amazon layoffs: 1-2% of workforce laid off (January, 2023) Carta layoffs: 10% of workforce laid off (January, 2023)

Who usually gets laid off first? ›

Factors That Layoff Decisions Are Frequently Based On

One of the biggest is your term of employment. Many organizations will first lay off employees who have been with the company for the shortest amount of time.

Why Google is firing employees? ›

The tech company said that it is laying off thousands of employees as a result of "macroeconomic conditions and changing customer priorities."

What are signs layoffs are coming? ›

Why are the layoffs happening in 2022 and signs that your job is in danger -
  • Micro and macro economics. ...
  • Mergers and Acquisitions. ...
  • Poor financials. ...
  • Hiring freezes. ...
  • Executives leaving. ...
  • Companies who say there are no layoff plans is a warning sign that it might happen. ...
  • Cost-cutting - another sign to watch out for.
Dec 6, 2022

What big companies are laying off? ›

  • Alphabet. Google (GOOGL)'s parent said Friday it is laying off 12,000 workers across product areas and regions, or 6% of its workforce. ...
  • Microsoft. The tech behemoth is laying off 10,000 employees, the company said in a securities filing on Wednesday. ...
  • Vox Media. ...
  • BlackRock. ...
  • Goldman Sachs. ...
  • Coinbase. ...
  • McDonald's. ...
  • Stitch Fix.
18 hours ago

Which all companies are laying off? ›

There was a clear message communicated to startups by all investors: cut costs and increase the runway. So far, 20,484 employees have been laid off by 67 startups, including unicorns BYJU'S, Chargebee, Cars24, LEAD, Ola, OYO, Meesho, MPL, Innovaccer, Udaan, Unacademy and Vedantu.

Will layoffs happen in 2023? ›

6 in 10 companies will likely lay off employees in 2023

Notably, a higher percentage (84%) said layoffs were likely, and 65% estimated that 30% or more of the company's workforce would be let go.

What month do most layoffs occur? ›

December is often the second-highest month for job cuts. January is worse.

Is it better to quit or be laid off? ›

Is it better to quit or be laid off? Unless you have significant savings or another job lined up, being laid off may be preferable to quitting your job. You're likely to qualify for unemployment benefits, for which you would be ineligible if you quit.

What is the number 1 reason employees are fired? ›

Failing to perform the job for which one was hired

Unsatisfactory performance is the primary reason why most employees get fired. Such a reason encompasses a number of specific things that can cause an individual to lose his job.

Which company does not fire employees? ›

7) HSBC--- This is the most secure company. It has never fired any employee, even when they know that the employee is showing fake experience.

Is Amazon firing employees? ›

Amazon on Wednesday announced it is planning to lay off more than 18,000 jobs amid a push to cut costs. Amazon is laying off 18,000 employees, the tech giant said Wednesday, representing the single largest number of jobs cut at a technology company since the industry began aggressively downsizing last year.

What are red flags in a job offer? ›

A Lack of Consistency In the Hiring Process

Perhaps one of the most common job search red flags candidates observe is a hiring process that's too long, too short, or has a general lack of consistency.

What is most common day for layoffs? ›

According to multiple sources, the best day to hold a layoff is on Tuesday.

How do I protect myself from being laid off? ›

Here are 5 other ways to improve your chances of not being laid off from work:
  1. Constantly demonstrate your value to your company. Look for opportunities to showcase your talents and special skills. ...
  2. Promote your accomplishments. ...
  3. Take advantage of “bad” times. ...
  4. Make yourself indispensable to clients. ...
  5. Be positive.

What companies failed due to poor management? ›

Biggest Failed Companies Due to Poor Management
  • New Century Financial Corporation. Asset Value at Time of Bankruptcy: $26 billion. ...
  • Wirecard AG. Asset Value at Time of Bankruptcy: $28 billion. ...
  • Bank of New England Corporation. Asset Value at Time of Bankruptcy: $30 billion. ...
  • FTX. ...
  • Refco.
Nov 29, 2022

What are the biggest companies that have failed? ›

  • Blockbuster.
  • Enron.
  • Blackberry.
  • Kodak.
  • Pan-Am.
  • MySpace.
  • Yahoo.
  • Polaroid.

Why are big tech companies laying off employees? ›

As inflation, supply-chain problems, and geopolitical turmoil curb revenue growth for tech companies, they have resorted to reducing headcount—some with massive layoffs—to bolster their balance sheets.

What are the benefits of being laid off? ›

Some common benefits you might get after being laid off include:
  • Payment for COBRA to extend your medical, dental, or vision coverage while you're unemployed.
  • Job search assistance, like getting a referral to work with an outside agency that can help you find a new role.
Jun 19, 2020

Are there more layoffs coming? ›

For the first time since the early days of the pandemic, most business economists expect their companies to cut payrolls in the coming months, according to a new survey released Monday.

Are big companies laying off 2022? ›

Tech Layoffs: U.S. Companies That Have Cut Jobs In 2022 and 2023. The U.S. tech sector layoffs continue. Tech giants Microsoft and Alphabet were just a few of the companies that announced sweeping layoffs this week.

What jobs will disappear in the next 5 years? ›

Jobs to decrease in demand by 2025
  • Data entry clerks.
  • Administrative and executive secretaries.
  • Accounting, bookkeeping and payroll clerks.
  • Accountants and auditors.
  • Assembly and factory workers.
  • Business services and administration managers.
  • Client information and customer service workers.
  • General and operations managers.
Jan 26, 2021

Who is most affected by layoffs? ›

Employees of technology companies have been particularly at risk of layoffs due to the industry having overhired amid the economic recovery following the onset of COVID-19.

What will the job market look like in 2024? ›

Officials now see the unemployment rate climbing to 3.8% by the end of the year, up slightly from the latest reading of 3.7%. The measure is then expected to rise to 4.4% next year and stay there through 2024. That's up from the prior estimates of 3.9% and 4.1% rates in 2023 and 2024, respectively.

Who decides who gets laid off? ›

These companies may follow the rule of “last in, first out” to prioritize layoffs—meaning that the most recent employees to be hired will be the first to be let go. Although its rare, some employers choose to offer severance pay to incentivize workers to leave on their own instead of being selected by management.

What is the best day to get fired? ›

There are a few schools of thoughts on what is the best day of the week to fire an employee: Mid-Week – The middle of the week (Tuesday-Thursday) is good because an employee can utilize the rest of the business week to immediately get their job search back on track.

What month do employers hire the most? ›

However, January and February are the most popular hiring months. Avoid the summer and holiday season when looking for a new job, since most companies slow down during these periods. The best time to look for a job is toward the beginning of the workweek and late mornings. This is when most companies update job boards.

Can I say I quit if I was fired? ›

It is not a legal designation. We have clients who have stopped a manager beginning to say "Therefore I regret to tell you that -- " in order to say "I quit!" They held off the termination announcement for the split second it took them to quit before they got fired. You can do the same thing in retrospect.

What looks worse quitting or getting fired? ›

It's theoretically better for your reputation if you resign because it makes it look like the decision was yours and not your company's. However, if you leave voluntarily, you may not be entitled to the type of unemployment compensation you might be able to receive if you were fired.

Is it smarter to quit or get fired? ›

The advantages of quitting instead of being fired include the possibility of negotiating severance and a positive recommendation. Disadvantages of quitting include forfeiting the right to claim unemployment. Any time you think your job is in danger, it's a good idea to start looking for a new job just in case.

What are the top 5 states to find a job? ›

The 10 best states to find a job right now, according to new...
  • Washington.
  • Vermont.
  • New Hampshire.
  • Colorado.
  • Minnesota.
  • Rhode Island.
  • Massachusetts.
  • Virginia.
Dec 1, 2022

How stressful is getting fired? ›

Experts rank losing a job high on the list of stressful life events. Between financial worries, damage to self-esteem, and the embarrassment of having to rehash the details to loved ones and potential future employers, the experience can leave quite a traumatic aftermath.

Does the average person get fired? ›

40% of people are fired from a job in their lifetime.

But the percentage of people who get fired is higher than you'd think. So don't feel bad if you've been terminated from a job in the past, because our research shows that: 40% of Americans have been fired from a job.

What job has the highest retention rate? ›

Government positions, which number 22.2 million in the U.S., took the top spot for industries where people stay in their jobs the longest.

What jobs have the highest turnover rate? ›

Industries With The Highest Turnover Rates
  • Food services and drinking places have the highest turnover rates, with workers staying on average only 1.8 years.
  • Food prep and serving related jobs (only 1.9 years)
  • Employees in the utilities industry (7.4 years) experience the longest tenure in the private sector.
Jul 13, 2022

Why do people quit from Amazon? ›

One frequently cited reason for the high rate of departures is Amazon's unusual compensation structure. Unlike other tech companies, Amazon caps salaries at around $160,000 for its white-collar workers, then adds stock grants that gradually vest in steadily increasing chunks over a period of four years.

Is Google doing layoffs? ›

Google has announced that it is laying off 12,000 employees worldwide, making it the latest in the list of tech giants like MetaOpens a new window , Microsoft, CISCO, and Twitter to do so over the last few months. Google's CEO, Sundar Pichai, informed his employees about the layoffs on Friday through an email.

What is the problem with Amazon workers? ›

A shift in power dynamic. Workers at Amazon have long complained about the stresses unique to their warehouses, from repetitive labor to the computerized face-recognition surveillance and comparatively high injury rates.

Are layoffs expected in 2023? ›

6 in 10 companies will likely lay off employees in 2023

Notably, a higher percentage (84%) said layoffs were likely, and 65% estimated that 30% or more of the company's workforce would be let go.

Will work from home continue in 2023? ›

Govt allows 100% work from home for employees of IT units in SEZ till Dec 2023. The government has amended the Special Economic Zones (SEZs) rules to permit IT/ITeS units in SEZs to allow 100 per cent of their workforce to work from home (WFH) till December 31, 2023 with certain conditions.

Will there be a hiring freeze in 2023? ›

Even though 77% of organizations have not implemented a hiring freeze or reduced 2023 hiring plans, more than half of HR decision-makers are worried about layoffs impacting their organization next year, the report emphasizes. Meanwhile, 8% believe that they will make fewer hires in the next 12 months.

Why layoffs 2023? ›

According to analysts, the major reason why IT businesses are preferring to lay off thousands of employees is because of the predicted recession that will strike the United States and Europe in 2023.

Will tech layoffs continue in 2023? ›

After a year in which technology companies announced massive layoffs, 2023 is looking no different — in fact, the year is starting off worse than 2022.

What companies can do to avoid layoffs? ›

How to Avoid Layoffs: Cost-Cutting Strategies for Business
  1. Put Promotions and Raises on Hold. Unless critical to your business, halt all promotions. ...
  2. Consider Executive Compensation Adjustments. ...
  3. Reduce Employee Hours. ...
  4. If Necessary, Furlough Employees. ...
  5. Evaluate Your Company's Top Performers. ...
  6. If Possible, Pay People Now.

Is any companies giving permanent work from home? ›

Swiggy. For several roles, Swiggy had previously established a permanent work-from-anywhere policy. Teams like corporate, key business functions and technology will work remotely and only convene once every three months for a week at base sites under this arrangement.

Will the job market get better in 2023? ›

Job Searching and Resume Building in the 2023 Labor Market

Despite the resilience of the current labor market, there is still a strong possibility for employers to gain the upper hand in 2023. There is much top talent in the pool, making the market strong but competitive.

Which companies are moving to permanent work from home? ›

List of companies providing permanent work from home
  • Atlassian.
  • Brex.
  • Coinbase.
  • AWeber Communications.
  • Dropbox.
  • HubSpot.
  • Novartis.
  • Skillshare.

What jobs will be obsolete in 5 years? ›

You know how it goes. Robots are going to come along and take our jobs.
...
Automation: 5 jobs that will never disappear, and 5 that will be gone by 2030
  • Travel agent.
  • Taxi drivers.
  • Store cashiers.
  • Fast food cooks.
  • Administrative legal jobs.
May 30, 2022

What are the fastest declining jobs? ›

Fastest declining occupations
2021 National Employment Matrix title2021 National Employment Matrix codeEmployment change, 2021–31
Cutters and trimmers, hand51-9031-2.3
Nuclear power reactor operators51-8011-1.3
Print binding and finishing workers51-5113-10.5
Watch and clock repairers49-9064-0.5
28 more rows
Sep 8, 2022

Which jobs will become obsolete in the next 5 10 years? ›

These aren't the only jobs that will disappear
  • Travel agents (as people use Booking.com and community-destroying vacation sites like Airbnb)
  • Paralegal and legal assistants (94% chance of automation)
  • Fast food cooks (hello robo-flippers)
  • Songwriters (hey Google)
  • Translators and Interpreters (hey Google)

Videos

1. Google axes 12,000 jobs amid major tech layoffs
(CBS Evening News)
2. Companies start 2023 with massive layoffs
(FOX 11 Los Angeles)
3. Google Layoffs
(Clément Mihailescu)
4. Meta and other Big Tech companies announce layoffs
(CNBC Television)
5. Google joins in on tech layoffs as Alphabet plans to cut 12,000 workers
(Yahoo Finance)
6. Massive tech layoffs, slowing growth boost fears of possible recession
(PBS NewsHour)
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