Mass layoffs in the tech universe: from Amazon to Facebook and WhatsApp | They estimate a difficult first quarter for the sector

Big tech companies began 2023 in the same way they finished 2022: by cutting staff. In an effort to offset losses incurred in recent months, these large companies have implemented mass layoffs. Microsoft’s most recent announcement saw 10,000 employees let go.

Amazon, Meta, Twitter, Alphabet, Lyft, Robinhood, and Coinbase had already informed their employees that layoffs were coming in the last weeks of 2022, and that this trend would likely continue into the first quarter of 2023.

The pandemic gave the tech industry a boost, allowing them to expand quickly as users around the world shifted their daily activities to digital platforms. However, the post-pandemic period, especially in 2022, saw a slowdown in growth, forcing companies to review their structures and investments. Rising raw material prices, inflation, and a decrease in loans all contributed to the tech industry’s need to make quick decisions in order to stay afloat.

Globally, the tech sector has seen 120,000 layoffs in the first weeks of 2023. Meta, the parent company of Facebook, Instagram, and WhatsApp, led the way with 11,000 layoffs, followed by Amazon with 10,000 and Twitter with 3,700. The pandemic-driven decrease in subscriptions and e-commerce hit Amazon hard, while advertising declines and a commercial rejection of the metaverse caused problems for Mark Zuckerberg’s accounts, and Elon Musk’s arrival marked a turning point for Twitter.

Argentina was not exempt from the layoffs. Fintech Oula confirmed 53 layoffs of its 1,300 employees, Cloud Store announced a 5% reduction in its workforce across the globe, resulting in 17 layoffs in the country, and Poplar sent telegrams to 200 employees. Argentine tech company Etermax, which created Trivia Crack, also reported 40 layoffs.

Chinese company Didi admitted layoffs in various Latin American countries, including Chile, Mexico, Peru, and Brazil, where it also decided to close its food delivery application. Meta also laid off staff in Argentina.

The outlook for 2023 remains unclear, though it is expected that the sector will remain “attractive” to the market. As the tech universe continues to grapple with mass layoffs in the first quarter of the year, a difficult period is forecasted ahead.