Tech Layoffs Keep Coming As Meta Prepares For Major Job Cuts
Facebook parent Meta Platforms Inc. is expected to begin large-scale layoffs this week, making it the latest in a string of tech companies that have let people go in recent days.
Meta could lay off thousands of workers, according to The Wall Street Journal. The company employed 87,000 people as of September. The layoffs could take place as early as Wednesday, the WSJ reported, and will be the first major headcount reduction at Meta since its founding in 2004.
The move by Meta comes after a particularly bruising week for Silicon Valley, in which several companies announced staff reductions, with more than 5,000 people losing their jobs at high-profile tech companies across the Bay Area.
The lion’s share of those job losses came at Twitter, where that company’s new owner, Elon Musk, began cutting jobs a week after purchasing the company for $44B.
The layoffs were needed to “place Twitter on a healthy path,” an email from Twitter management said, according to Bloomberg. Reports indicated that as much as half of the company’s workforce would be impacted, or about 3,700 people.
A class-action lawsuit against Twitter was brought last week for allegedly failing to comply with the federal Worker Adjustment and Retraining Act, which requires large companies to provide 60 days’ notice before mass layoffs.
Payment processing company Stripe also reported layoffs last week, with CEO Patrick Collison announcing 14% of the company’s workforce would be let go, or roughly 1,100 people, according to CNBC. The layoffs will primarily impact the company’s recruiting department, with Collison also saying Stripe will hire fewer people next year.
Financial tech company Chime has also struggled in recent months, with the company this week announcing layoffs of 12% of its staff, signaling further difficulties for the financial tech segment. The layoffs are estimated to impact 150 people, according to The Information.
Chime closed a deal to occupy 200K SF at 101 California St. in San Francisco last year, committing to 12 years and reportedly paying $85 per SF, according to the San Francisco Business Times.
Real estate tech firm Opendoor announced that it would cut 18% of its workforce, or an estimated 550 employees, primarily due to economic headwinds facing the housing market as mortgage rates have skyrocketed.
Opendoor’s offices in San Francisco remain at 303 Second St., and the company reaffirmed its position in the city to the San Francisco Business Times in June.
The market has been particularly hard on public real estate startups over the past few weeks. An analysis from Crunchbase indicated that companies such as Opendoor, WeWork and Compass have lost over $42B in value from their opening prices.
In addition to layoffs, a glacial wind is pushing through the tech industry, as companies including Apple, Qualcomm, Amazon, Salesforce and Credit Karma have all announced hiring freezes for the foreseeable future.
Credit Karma, based out of Oakland, added 500 employees over the past year. The company cited revenue challenges amid economic uncertainty as the primary reason for the freeze, according to Bloomberg.
The Bay Area has been wracked with layoffs for the past six months, with companies such as Oracle, Gap, Paypal and several others instituting dismissals.
The office market in the San Francisco area struggled to rebound from the pandemic, as tech companies were more likely to maintain remote work policies. Layoffs and hiring freezes from the area's biggest employers are likely to push up already-climbing office vacancies, especially in the once-bustling Financial District.
UPDATE, NOV. 4, 10:43 A.M. ET: This story has been updated with information about layoffs at Twitter.
UPDATE, NOV. 6, 7:39 P.M. ET: This story has been updated with information about impending layoffs at Facebook.