{"id":12491,"date":"2023-02-06T06:35:00","date_gmt":"2023-02-06T12:35:00","guid":{"rendered":"https:\/\/www.shieldagency.com\/blog\/?p=12491"},"modified":"2023-01-31T08:00:53","modified_gmt":"2023-01-31T14:00:53","slug":"the-tech-industrys-moment-of-reckoning-layoffs-and-hiring-freezes","status":"publish","type":"post","link":"https:\/\/www.shieldagency.com\/blog\/the-tech-industrys-moment-of-reckoning-layoffs-and-hiring-freezes\/","title":{"rendered":"The tech industry\u2019s moment of reckoning: layoffs and hiring freezes"},"content":{"rendered":"\n

The Verge<\/a> | By<\/em>\u00a0VERGE STAFF | Jan 26, 2023 | layoffs and hiring freezes | Business Insurance with Shield<\/a><\/p>\n\n\n\n

Over the past few months, the economy has started to turn, and tech workers are being hit hard. Meta, Twitter, and more have fired thousands, and others are slowing or freezing hiring.<\/h2>\n\n\n\n

Over the last year, it feels like every day, we\u2019ve heard the news of mass layoffs and hiring freezes from big tech companies that were formerly famous for having deep pockets and near-endless amenities for workers.<\/p>\n\n\n\n

Now, it\u2019s clear that the industry as a whole is tightening its belt, leaving hundreds of thousands of employees out of work \u2014 and more wondering if they\u2019ll have a job within the next few months or searching for jobs in an industry that no longer has a spot for them. It\u2019s gotten to the point where one tech recruiting site created an interactive tool<\/a> to track the layoffs across established companies and startups.<\/p>\n\n\n\n

To open 2023, Amazon announced<\/a> layoffs of mostly corporate employees will trim 18,000 workers from the roster, the biggest reduction \u2014 in raw numbers, despite Amazon\u2019s 1.5 million-strong workforce \u2014 yet. Slightly smaller raw numbers popped up at Google, with 12,000 layoffs<\/a>, and Microsoft, with 10,000<\/a>.<\/p>\n\n\n\n

Elizabeth Lopatto spoke to experts<\/a> to try and answer the question of why so many layoffs are happening right now, despite tech companies continuing to register sizable profits. One reason is that \u201cinvestors have changed how they\u2019re evaluating companies,\u201d even if there\u2019s a lack of evidence that the layoffs can help solve any of the problems they may have.<\/p>\n\n\n\n

Twitter\u2019s layoffs<\/a> happened because Elon Musk bought the company and took it private, and Meta\u2019s CEO claims its 13 percent reduction in staff<\/a> is a course correction after the company went on a hiring spree during the online retail boom that came out of the pandemic. Companies that rely on advertising, like Meta and Snap<\/a>, have also been hit hard by privacy policy changes from Apple<\/a>.<\/p>\n\n\n\n

Meanwhile, the iPhone maker is blaming the economy for its own hiring slowdown<\/a>, despite being one of the few companies still announcing record-breaking earnings<\/a> and beating estimates.<\/p>\n\n\n\n

We\u2019ll probably see even more reasons for layoffs or freezes as other companies announce their own. Stay tuned to this page for the latest on big tech companies\u2019 cost-cutting measures and how they affect current and former employees.<\/p>\n\n\n\n

Here\u2019s all our coverage of the recent outbreak of layoffs and hiring freezes from big tech, auto, crypto, and more:<\/h2>\n\n\n\n

Read m<\/a>ore on layoffs and hiring<\/a>.<\/a>.<\/a>.<\/a><\/p>\n\n\n\n

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More great blogs by Shield Insurance Agency<\/h2>\n\n\n