Layoffs are on the rise in the US
A few days ago, the META group, formerly Facebook, decided to lay off 11,000 employees, more than 10% of META’s workforce, which is considerable. Almost twenty years after its foundation, this is the first time that the group, including Facebook, Messenger, WhatsApp and Instagram, with more than 3 billion users, has launched a huge social plan. On the contrary, in recent years and mainly since the pandemic, Meta had recruited in spades to reach 87,000 employees at the end of September. Meanwhile, META has invested in the Metaverse, and the results are disappointing.
On the Amazon side, it’s panic. Amazon plans to lay off nearly 10,000 employees soon. These layoffs will occur in the devices branch of the tech giant, including its voice assistant Alexa, but also in retail, which includes its few physical stores and e-commerce. Human resources will also be involved. According to several sources, Alexa would lose more than 5 billion USD annually.
Twitter, which had nearly 7,500 employees at the end of October, notified thousands of people by email and announced the temporary closure of its offices.
The text of the layoff is terse,” As informed earlier today, Twitter is reducing its workforce to help improve the health of the company. These decisions are never easy, and regretfully, we write to inform you that your position at Twitter is affected. Today is your last day of work.”
Today, the world leader in personal computers and printers, HP, the Hewlett-Packard group, announced that it will lay off between 4,000 and 6,000 employees by 2025.
HP currently has about 60,000 employees. As a result of the layoffs, HP hopes to save 1.4 billion USD per year over the next three years.
On its 2022 balance sheet, which ends on October 31, HP has achieved a turnover of USD 63 billion, down 0.8% year-on-year, of which it has made a net profit of USD 3.5 billion, divided by two over one year.
On Wall Street, its share price lost approximately 1% in electronic trading after closing the stock market.
Silicon Valley could thank the pandemic benefited mainly the high-tech sector. Unfortunately, the economic crisis has passed through, and these same companies, yesterday, at the top of the world, are falling back to earth heavily, some of which had hired a lot, betting on strong growth over time.