Arab Press

بالشعب و للشعب
Monday, Apr 06, 2026

Layoffs 2023: Tech companies lead job cuts amid economic uncertainty

Layoffs 2023: Tech companies lead job cuts amid economic uncertainty

FedEx, Okta, PayPal, Rivian Automotive are the latest companies to lay off workers

Layoffs are mounting as concerns of a weakening economy grow.

The tech industry has undeniably taken the biggest hit as companies try to feverishly cut costs after hiring too rapidly during the COVID-19 pandemic

However, job cuts have affected several industries – from media to Wall Street to the crypto world – in recent months. Recently, the growing list has included companies such as FedEx, Hasbro and Newell Brands, parent of Sharpie and Yankee Candle, proving that the slowdown is spilling outside the tech sector.

Despite the growing layoffs, the government offered up some optimistic news in regard to job growth in January. Employers added 517,000 jobs last month, the Labor Department said in its monthly payroll report released Friday. This topped the 185,000 jobs forecast by Refinitiv economists and marked the best month for job creation since July.

The unemployment rate, meanwhile, dropped to 3.4%, the lowest level since 1969.


Here are the major companies that laid off workers in recent weeks:


3M


Multinational conglomerate 3M announced on Tuesday that it will cut 2,500 global manufacturing roles after fourth-quarter profits plummeted due to a slowing economy.

"In a year impacted by inflation, global conflicts, and economic softening, our team took actions to position 3M for future success," CEO Mike Roman said.

Still, the company expects "macroeconomic challenges to persist in 2023."

Alphabet


Google parent company Alphabet Inc. announced that it plans to cut 12,000 jobs to weather the current economy.

Google CEO Sundar Pichai


CEO Sundar Pichai said the cuts affect teams globally, including recruiting and some corporate functions as well as some engineering and products teams.


Affected employees in the U.S. were notified by email, Pichai said in a blog post.

Pichai said he takes full responsibility for the decisions that led the company to this point.

"Over the past two years we’ve seen periods of dramatic growth. To match and fuel that growth, we hired for a different economic reality than the one we face today," he said.

Amazon


Amazon said in early January that it would lay off more than 18,000 employees in what will be its largest workforce reduction to date. The company started cutting jobs on Jan. 18.

An Amazon Prime delivery van leaves a warehouse in Dedham, Massachusetts, on Oct. 1, 2020.


The layoffs mostly impact the company’s Amazon Stores division — which encompasses its e-commerce business as well as the company’s brick-and-mortar stores — and its PXT organizations, which handle human resources and other functions.


CEO Andy Jassy first warned employees in November that layoffs were on the horizon given the uncertain economy and the fact that the company rapidly hired over the course of the pandemic.

Dell


Dell announced on Feb. 6 that it plans to cut 6,650 jobs, or 5% of its global workforce, due to a drop in demand for its personal computers, according to a Securities Exchange Commission filing.

Dell's co-Chief Operating Officer Jeff Clarke said in a memo to employees that the company was facing market conditions that "continue to erode with an uncertain future."

Prior to the cuts, the company instituted cost-cutting initiatives such as pausing hiring and limiting travel, but said those are no longer sufficient.

Dow


Dow Inc. announced plans on Thursday to cut 2,000 jobs worldwide as part of a corporate restructuring plan to secure $1 billion in cost savings in 2023.

"We are taking these actions to further optimize our cost structure and prioritize business operations toward our most competitive, cost-advantaged and growth-oriented markets, while also navigating macro uncertainties and challenging energy markets, particularly in Europe," Dow CEO Jim Fitterling said.

FedEx


FedEx told employees in a memo on Feb. 1 that it is reducing its officer and director team by more than 10% and consolidating some teams and functions.

CEO Raj Subramaniam told employees that the cuts were necessary to "become a more efficient, agile organization."

"It is my responsibility to look critically at the business and determine where we can be stronger by better aligning the size of our network with customer demand," Subramaniam said. "While we have already taken many actions to that end, it was necessary to also look closely at the size of our leadership team and functions that could be consolidated."

Hasbro


Hasbro Inc. announced on Thursday that the company will cut 15% of its global workforce this year as part of an effort to substantially reduce costs and increase growth and profitability.

Hasbro CEO Chris Cocks said in a statement that the company's consumer products business "underperformed in the fourth quarter against the backdrop of a challenging holiday consumer environment."

The cuts, along with ongoing systems and supply chain investments, are slated to help the company save between $250 million and $300 million annually by the end of 2025, Hasbro said.

IBM


IBM announced large-scale layoffs on Wednesday.

CFO James Kavanaugh told Bloomberg the company plans to cut roughly 3,900 employees, about 1.5% of its workforce. The layoffs will mainly come from those still with the company after it spun off Kyndryl Holdings in 2021 and Watson Health in 2022.

Microsoft


Microsoft announced on Jan. 18 that it's cutting 10,000 positions.

Microsoft logo in Los Angeles on Nov. 7, 2017.


The move, which will take place at the end of the third quarter, is "in response to macroeconomic conditions and changing customer priorities," according to a filing with the Securities and Exchange Commission (SEC).

Newell Brands


Newell Brands announced on Monday that it will eliminate 13% of its office positions as part of a restructuring and savings initiative called "Project Phoenix."

The company's portfolio of well-known brands includes Rubbermaid, FoodSaver, Calphalon, Sistema, Sharpie, Paper Mate, Dymo, Expo, Elmer's and Yankee Candle.

"We expect to unlock significant savings from the restructuring initiatives, which should help partially offset the impact of macroeconomic pressures on the business, while making us a more nimble and agile organization," CEO Ravi Saligram said in a statement.

Okta


CEO Todd McKinnon told employees in Feb. 2 notice that the company was reducing its global workforce by 5%, which equates to about 300 employees.

McKinnon apologized to employees saying that a workforce reduction was "the last thing" he wanted to do.

"We entered fiscal 2023 with a growth plan based on the demand we experienced in the prior year," McKinnon said.

As a result, McKinnon said that the company overhired "for the macroeconomic reality we’re in today."

PayPal


PayPal CEO Dan Schulman told employees in a Jan 31. letter that the company will cut its global workforce by 7%, or approximately 2,000 full-time employees. The cuts will impact some organizations more than others, he added.

"Over the past year, we made significant progress in strengthening and reshaping our company to address the challenging macro-economic environment while continuing to invest to meet our customers’ needs," Schulman said.

Although the company has made "substantial progress" in right-sizing its cost structure and focusing its resources on its core strategic priorities, Schulman said more work needs to be done to better adapt to the current economic environment.

Rivian Automotive


The electric vehicle maker is cutting 6% of its workforce in order to lower costs.

In an email to employees, seen by FOX Business, CEO R.J. Scaringe said that the company is trying to focus its resources on ramping up production and reaching profitability amid the uncertain economic environment.

SAP


The software company said on Thursday that it is eliminating about 3,000 jobs, which amounts to about 2.5% of its workforce.

"This was a difficult decision, and we are deeply aware of the personal impact of these changes," the German company said in a statement. "We will provide colleagues the care and support they need during this challenging time."

SAP's full-year profits fell 68% last year compared with 2021.

Spotify


Spotify announced on Monday that it is planning to cut 6% of its global workforce in order to rein in costs.

CEO Daniel Ek said its operating expenses outpaced its revenue growth in 2022, which he acknowledged would have been impossible to sustain.

"Like many other leaders, I hoped to sustain the strong tailwinds from the pandemic and believed that our broad global business and lower risk to the impact of a slowdown in ads would insulate us," Ek said, adding that "in hindsight, I was too ambitious in investing ahead of our revenue growth."


Wayfair


Wayfair is also cutting its global workforce again.

The discount home retailer plans to shed 10% of its global workforce — or 1,750 jobs — as outlined in a Jan. 20 filing with the SEC. The move is part of ongoing plans to thin out management and become more agile in the current environment.

"In hindsight, similar to our technology peers, we scaled our spend too quickly over the last few years," CEO Niraj Shah said.

The Wayfair Inc. website on a laptop computer in St. Thomas, Virgin Islands, on Feb. 18, 2021.


The company already axed 5% of its global workforce in August.

WeWork


WeWork announced on Jan. 19 that it is cutting its global workforce.

In order to continue to streamline operations and optimize its portfolio, the company said it is cutting 300 positions.

Workday


Workday announced in a Securities and Exchange Commission filing on Jan. 31 that it's cutting 3% of its global workforce.

The majority of the roles being cut are within its Product & Technology organization, according to co-CEOs Aneel Bhusri and Carl Eschenbach.

"As we navigate this uncertain environment, it’s important we help ensure Workday is set up for continued growth for many years to come," Bhusri and Eschenbach said in a joint statement. "This includes continuing to invest in the strategic areas of our business so we can capitalize on the opportunity in front of us; aligning our resources against business priorities; optimizing in certain areas so we can operate more efficiently; and prioritizing to meet customer and market demands."


Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Iranian Drone Strike on US Embassy in Saudi Arabia Reportedly Targeted Intelligence Facility
Saudi Deputy Foreign Minister Meets French Embassy Official to Strengthen Bilateral Engagement
Saudi Arabia Calls on United States to Seize Strategic Opportunity to Reshape Middle East
Dating Apps Surge in Saudi Arabia as Social Norms Rapidly Evolve Among Youth
Saudi Arabia Detains Over Fourteen Thousand Illegal Residents in Week-Long Enforcement Drive
Saudi Foreign Minister Engages in Diplomatic Talks with Pakistan, Kuwait and Latvia on Regional Developments
Saudi Arabia Intercepts Cruise Missile as Regional Tensions Intensify
Saudi Stock Market Edges Higher as Tadawul Index Records Modest Gain
Underlying Rivalry Between Saudi Arabia and UAE Persists Despite Temporary Calm
Saudi Arabia’s Non-Oil Sector Contracts in March as Regional Tensions Weigh on Business Activity
Saudi Arabia Unveils Ambition to Establish Prestigious Global Prize Rivaling the Nobel
Saudi Crown Prince to Engage Wall Street in Push for Investment and Economic Expansion
Iran Accuses Saudi Arabia and UAE After Downing of Chinese-Made Drone
Saudi Arabia Condemns Attack on Hospital in Sudan, Calls for Protection of Civilians
Coordinated Drone Strike Targets CIA Facility Within US Embassy in Saudi Arabia
Italy’s Meloni Prioritises Energy Security and Strait of Hormuz Stability During Gulf Tour
Uncertainty Emerges Over Timeline and Direction of Saudi Arabia’s Ambitious Ski Resort Project
UAE and Saudi Arabia Escalate Strategy with Drone Operations Targeting Iran
Trump Delivers Characteristic Remarks on Saudi Crown Prince Amid Intensifying Iran Conflict
Drone Strike on US Embassy in Riyadh Caused Greater Damage Than First Reported
Saudi Arabia Introduces Flexible Solutions for Expired Visas Amid Regional Disruptions
Saudi Arabia’s Online Car Market Accelerates with AI Pricing and Fully Digital Buying Experience
Saudi Arabia Reassesses Defence Strategy as Iranian Drone Threat Drives Shift in Military Partnerships
Drone Strikes Target Saudi Arabia, Kuwait and Bahrain as Regional Conflict Intensifies
Japan and Saudi Arabia Align Efforts to Ease Rising Tensions with Iran
Saudi Crown Prince and Italy’s Meloni Strengthen Strategic Ties in High-Level Talks
SpaceX Explores Potential Five Billion Dollar Investment from Saudi Sovereign Wealth Fund Ahead of IPO
Saudi Arabia Lifts Key Import Barriers to Expand Access for U.S. Beef Exports
Saudi Arabia Enforces Strict Travel Penalties for Visits to Restricted Countries
Italy’s Meloni Embarks on Strategic Gulf Tour to Address Energy Security and Regional Stability
Saudi Film Festival Rescheduled to Summer as Regional Tensions Continue
Saudi Arabia Reports Forty Two Point Six Billion Dollars in Foreign Tourist Spending in 2025
Saudi Crown Prince and Russian President Hold Strategic Call on Escalating Regional Crisis
Saudi Arabia Advances Rail Network as Strategic Alternative to Strait of Hormuz Shipping Route
Ruanyun Edai Launches Saudi Arabia Hub With Forecast of Ten Percent Revenue Growth
Greek Defence Minister Visits Troops in Saudi Arabia Following Successful Missile Interception
Saudi Arabia Expands Global Strategy With Focus on African Critical Minerals
SpaceX Explores Potential Five Billion Dollar Investment From Saudi Fund Ahead of Possible IPO
US Central Command Dismisses Iranian Claim of Mass Casualties Among American Personnel in Saudi Arabia
Co-Diagnostics to Establish Molecular Diagnostics Facility in Saudi Arabia Through Joint Venture
Trump Engages Saudi Crown Prince in Talks on Potential Iran Ceasefire
Saudi Arabia’s Sadara Suspends Operations as Supply Chain Disruptions Intensify
Saudi Arabia Accelerates Energy Shift by Trading Oil Revenues for Battery Investments
Saudi Arabia Introduces Flexible Options for Expired Visas Amid Regional Disruptions
Online Narratives Surge as Iran–US Tensions Spill Into Digital Arena Following Trump Remarks
Saudi Arabia Urges Trump to Seize Strategic Moment as UAE Weighs Ground Deployment
Saudi Arabia Redirects Nearly One Million Barrels of Oil Daily Away from Strait of Hormuz
Saudi Arabia Carries Out Execution of Businessman Linked to 2011 Qatif Unrest
Ukraine–Saudi Defense Pact Signals Rising Demand for Battlefield Expertise
Saudi Arabia Balances Diplomacy and Defense Preparedness Amid Iran Conflict
×