Here’s which Silicon Valley tech companies have ordered layoffs and hiring freezes

SAN FRANCISCO, Calif. (KRON) — It’s been a tough year for tech companies in San Francisco and Silicon Valley with layoffs and hiring freezes. High-tech CEOs have said they are cutting staff because they see a recession looming.

Telsa CEO Elon Musk hit the pause button on hiring because he has a “super bad feeling” about what’s to come next. Coinbase CEO Brian Armstrong said he predicts the worst because if a recession sets in, a “crypto winter” is coming.

Technology layoffs

Telsa – factory operates in Fremont: The electric car manufacturing company reportedly laid off 10% of its staff in June. Tesla CEO Elon Musk said he would also suspend hiring because he had a “super bad feeling” about the economy, Reuters reported.

According to a May filing with the Securities and Exchange Commission, Tesla said it had more than 100,000 employees worldwide.

A Model Y electric vehicle is pictured at Tesla’s “Gigafactory” on March 22, 2022 (Photo by PATRICK PLEUL/POOL/AFP via Getty Images)

Netflix – headquartered in Los Gatos: The movie and TV streaming service has laid off 450 employees in the past two months. Netflix laid off 150 workers in its first round of layoffs in May, followed by another 300 layoffs in June. The company is cutting costs in a city center with growing revenues and a sharp drop in subscriber numbers.

A sign is displayed outside Netflix headquarters on April 20, 2022 in Los Gatos (Photo by Justin Sullivan/Getty Images)

Coinbase – headquartered in San Francisco:

The cryptocurrency exchange platform announced layoffs for 18% of its employees.

Coinbase CEO and co-founder Brian Armstrong wrote in a post dated June 14, “I am making the difficult decision to reduce the size of our team by approximately 18%, to ensure we stay healthy during this downturn. economic.

Armstrong listed the reasons the layoff was necessary. “Economic conditions are changing rapidly. We seem to be entering a recession after an economic boom of more than 10 years. A recession could lead to another crypto winter and could last for an extended period. Over the past crypto winters, trading revenue (our primary source of income) has declined significantly. Although it is difficult to predict the economy or the markets, we always expect the worst. We want to make sure we can successfully navigate a prolonged downturn,” he wrote.

Armstrong also admitted that his business “grew too quickly.” “At the beginning of 2021, we had 1,250 employees. At the time, we were in the early innings of the bull run and the adoption of crypto products was exploding. It is difficult to grow at the right pace given the scale of our growth (~200% y/y since the start of 2021). Although we did our best to make it perfect, in this case it is now clear to me that we have over-hired,” he wrote.

(Photo by JUSTIN TALLIS/AFP via Getty Images)

Stitch Fix – headquartered in San Francisco:

The online personal shopping and styling company announced on June 9 that it was cutting its workforce by 15%, or around 330 employees.

Stich Fix CEO Elizabeth Spaulding wrote in a memo to employees: “I am writing to share the difficult news that we are reducing our workforce by approximately 15% of salaried positions. Most of the reductions relate to our non-tech corporate roles and our style leadership roles. In light of our recent business momentum and an uncertain macroeconomic environment, we have taken a fresh look at our business and what is needed to build our future.

Sonder – headquartered in San Francisco: The short-term rental company bills itself as a more upscale version of Airbnb and was once valued at nearly $2 billion.

Sonder Holdings Inc. announced on June 9 that it was “restructuring” its operations, including cutting 21% of the company’s corporate roles and 7% of frontline roles, according to Market Watch.

Freezing the hiring of technicians

Meta – the parent company of Facebook and Instagram based in Menlo Park:

Even this social media tech giant is enacting a hiring freeze for certain positions. The product groups experiencing a freeze are the dating app, the gaming app, and a messaging app designed for kids. One of the reasons for the freeze is due to Apple’s iOS privacy change that requires apps to ask for permission before tracking user activity. Meta said Apple’s app tracking transparency feature will cut the company’s 2022 sales by about $10 billion.

A person takes a selfie in front of a logo for “Meta”, the new name for Facebook’s parent company, outside Facebook’s headquarters in Menlo Park on October 28, 2021. (Photo by NOAH BERGER/AFP via Getty Images)

Twitter – headquartered in San Francisco:

Twitter froze the majority of its hiring in May, according to Business Insider.

“As of this week, we are suspending most hiring and replacements, except for business-critical roles,” the company spokesperson told Insider. Twitter CEO Parag Agrawal told employees that the company was struggling and failing to meet its audience building and revenue goals, Bloomberg reported.

Twitter is facing a possible takeover by Musk, who has offered to buy the social media company for $44 billion.

Musk, the world’s richest man, met virtually with Twitter employees earlier this month. Musk reportedly discussed possible layoffs at the company and said, currently, “costs are outpacing revenue. It’s not a good situation. He also touched on growth, saying he would like to see Twitter reach a billion users, about four times its current user base.

SF twitter
People walk past the Twitter headquarters on April 26, 2022 in downtown San Francisco. (Photo by AMY OSBORNE/AFP via Getty Images)

Intel – based in Santa Clara

Intel also ordered a hiring freeze in June for its computer group that creates PC chips for desktop and laptop computers, according to Fortune magazine.

“Increased focus and prioritization of our spending will help us weather macroeconomic uncertainty, execute our strategy, and meet our commitments to customers, shareholders and employees,” Intel told Fortune.

Intel headquarters in Santa Clara. (Photo by Justin Sullivan/Getty Images)

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