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Mass Layoffs in 2022 & 2023: What’s Next for Employees?

Mass layoffs are a difficult but common occurrence in the business world that leaves many employees wondering how they’ll be affected and what to do should they find themselves holding a pink slip.

While the current employment market in the US is strong — with low unemployment rates and high job growth — this could all change in the near future as many businesses struggle to adapt to the changing economy.

Taking all of this into account, many US companies have already begun mass layoffs this year.

What is a mass layoff?

A “mass layoff” can be defined when the following occurs:

  • When at least 50 employees are laid off within 30-days or less resulting in the laid-off employees equaling more than one-third of the company’s workforce
  • 500 employees are laid off within 30-days or less, no matter how large the company’s workforce

This can be devastating for both the individuals affected personally and the economy as a whole.

Everything you need to know about company layoffs this year:

What companies have had mass layoffs this year?

Meta (Facebook) mass layoffs:

Today, after an early March announcement that Meta would be conducting a second round of layoffs that would potentially affect “thousands” in its workforce, it was confirmed that 10,000 of Meta’s workforce would be laid off.

Equating to roughly 13% of the Meta workforce, this latest round of layoffs is an attempt to support Meta CEO, Mark Zuckerberg’s proposed, “Year of Efficiency.”

Meta will also close out around 5,000 job listings that have yet to be filled.

This second round of layoffs comes after the Wednesday, November 9th, 2022 announcement of mass layoffs for 11,000 employees. These cuts came after Meta shares lost two-thirds of their value and accounted for 13% of its workforce — This was the first mass layoff in Meta’s 18-year history.

Disney / ESPN mass layoffs:

Disney CEO Bob Iger announced on February 8, 2023 that they plan cut 7,000 jobs, representing more than 3% of its global workforce. The layoffs will largely affect the entertainment and ESPN divisions.

Zoom mass layoffs:

Zoom CEO Eric Yuan announced layoffs of 1,300 employees, or 15% of its workforce, in an email on Tuesday, February 7th, 2023. As part of that announcement, Yuan said he will also reduce his salary by 98% this year, while other executives will see a 20% cut.

These layoffs will impact every department within the company, and laid-off employees are said to be receiving up to 16 weeks’ salary and healthcare coverage as severance.

Dell mass layoffs:

Due largely to the rapid reduction in the demand for PCs, as evidenced by a 37% decline in PC shipments in Q4 of 2022, computer manufacturer, Dell announced on February 6th, 2023 it will be laying off 6,500 people from its workforce

At 5% of its global workforce, these layoffs come as another cost-cutting measure in addition to hiring freezes and travel restrictions the company had already put into place.

PayPal mass layoffs:

PayPal closed out January 2023 by announcing that it would be laying off 2,000 employees, making up roughly 7% of its workforce.

The layoffs, scheduled to take place over the first few weeks of February, come as a result of the company’s attempts to “right-size” its cost structure, and focus its resources on its “core strategic priorities,” according to the statement made by PayPal President, Dan Schulman.

IBM mass layoffs:

IBM announced on Wednesday, January 25th that it will be cutting roughly 3,900 positions, or 1.5% of its global workforce, as a result of the previously announced spinoff and sale of two business units.

This move is expected to cost the company around $300 million this quarter making IBM the latest tech giant to make significant cuts to its workforce.

Spotify mass layoffs:

The latest in a slew of tech company mass layoffs in January, Spotify announced that it would be letting go of 6% of its global workforce.

In the message sent to employees that was also posted online, CEO Daniel Ek announced changes to high-level management and cited the need for speed and efficiency as some of the driving forces behind these “organizational changes.”

With roughly 6,600 global employees the 6% layoffs would account for roughly 400 of Spotify workers.

Google (Alphabet) mass layoffs:

On Friday, January 20, Alphabet, the parent company of Google sent a memo written by chief executive, Sundar Pichai announcing that 12,000 employees would be laid off.

In this memo, Pichai explained, “We hired for a different economic reality than the one we face today.”

The 12,000 employees being laid off account for roughly 6% of the global workforce and is the latest in a slew of tech company mass layoffs.

Microsoft mass layoffs:

In a memo sent to employees on January 18, 2023, Microsoft CEO Satya Nadella announced that the company is making changes that will result in 10,000 jobs being eliminated through the end of March 2023.

The memo also stated that while Microsoft would be eliminating roles in certain areas, they will continue to hire in key strategic areas.

This makes Microsoft the latest in a swell of tech companies that have resorted to mass layoffs in reaction to growing concerns over the economic landscape.

Amazon mass layoffs:

Amazon CEO Andy Jassy announced on January 4, 2023 via an internal memo, that they plan to cut 18,000 jobs worldwide centered around corporate and technology jobs, these initial layoffs are just the beginning of Amazon’s overall plan to consolidate certain teams.

After announcing plans for mass layoffs in mid-November 2022, Amazon began letting employees go on November 16th. These layoffs will make up roughly 1% of its global workforce or 3% of its corporate employees.

As part of its cost-cutting strategy, Amazon is also offering a voluntary severance buy-out package to some employees who resign on their own.

DirecTV mass layoffs:

DirecTV announced that it would be laying off 10% of its management which accounts for about half of its total workforce. In a memo sent on January 6th, 2023 employees were made aware of the layoffs and reports say that the affected workers’ last day is January 20th.

After losing roughly 400,000 subscribers in Q3 of 2022, DirecTV continues to struggle to keep up with streaming entertainment services.

“The entire pay-TV industry is impacted by the secular decline and the increasing rates to secure and distribute programming,” a DirecTV rep said in a statement. “We’re adjusting our operations costs to align with these changes and will continue to invest in new entertainment products and service enhancements.”

Salesforce mass layoffs:

Salesforce CEO Marc Benioff announced on January 4, 2023 that the B2B software company plans to cut 7,000 jobs, approximately 10% of its workforce, over the coming weeks.

Vimeo mass layoffs:

Popular video-hosting platform Vimeo plans to lay off 11% of their employees in January, 2023. This round of layoffs is on top of the 6% laid off in Juley, 2022.

CEO Anjali Sud stated the staff layoffs were necessary to give the company “financial flexibility,” while also noting “It is also the right thing to do to enable Vimeo to be a more focused and successful company, operating with the necessary discipline in an uncertain economic environment.”

Companies with layoffs in 2023:

  • Roku layoffs: 6% of workforce laid off (March, 2023)
  • Lucid Group layoffs: 18% of workforce laid off (March, 2023)
  • Meta layoffs: 13% of workforce laid off (March, 2023)
  • Twitter layoffs: 10% of workforce laid off (February, 2023)
  • Twillo layoffs: 17% of workforce laid off (February, 2023)
  • Roomba layoffs: 7% of workforce laid off (February, 2023)
  • Disney layoffs: 3% of workforce laid off (February, 2023)
  • Zoom layoffs: 15% of workforce laid off (February, 2023)
  • Dell layoffs: 5% of workforce laid off (February, 2023)
  • HubSpot layoffs: 7% of workforce laid off (February, 2023)
  • PayPal layoffs: 7% of workforce laid off (February, 2023)
  • IBM layoffs: 1.5% of workforce laid off (January, 2023)
  • Gemini layoffs: 10% of workforce laid off (January, 2023)
  • Yankee Candle layoffs: 13% of office workers laid off (January, 2023)
  • 3M layoffs: <1% of workforce laid off (January, 2023)
  • Spotify layoffs: 6% of workforce laid off (January, 2023)
  • Google (Alphabet) layoffs: 6% of workforce laid off (January, 2023)
  • Microsoft layoffs: 4-5% of workforce laid off (January, 2023)
  • Amazon layoffs: 1-2% of workforce laid off (January, 2023)
  • Carta layoffs: 10% of workforce laid off (January, 2023)
  • Coinbase layoffs: 20% of workforce laid off (January, 2023)
  • DirecTV layoffs: 5-6% of workforce laid off (January, 2023)
  • Salesforce layoffs: 10% of workforce laid off (January, 2023)
  • Vimeo layoffs: 11% of workforce laid off (January, 2023)
  • Goldman Sachs layoffs: 8% of workforce laid off (January, 2023)
  • Compass layoffs: size of layoffs not immediately known (January, 2023)
  • Stitch Fix layoffs: 20% of workforce laid off (January, 2023)

What companies had mass layoffs last year?

DoorDash mass layoffs:

On November 30th, 2022 a company spokesman for DoorDash confirmed that the company will layoff approximately 1,250 employees — representing 6% of the company’s staff. CEO Tony Xu called the mass layoff “the most difficult change to DoorDash that I’ve had to announce in our almost 10-year history.”

DoorDash’s stock price is down more than 60% since January, 2022.

Twitter mass layoffs:

On Friday, November 4th, 2022 Twitter laid off 3,700 employees — nearly half of its global employees.

Twitter’s mass layoff affected many departments, including the content moderation teams, sales, and advertising departments, and engineering & development divisions.

Twitter’s mass layoff of nearly 50% of its workforce is the largest mass layoff of 2022 by a tech company.

In a second round of mass layoffs, 200 — roughly 10% — of Twitter’s remaining workforce was laid off late in February of 2023.

Zillow mass layoffs:

Citing continued declines in the housing market, online real estate services company, Zillow laid off 300 employees at the end of October 2022.

At roughly 5% of its overall employees, these layoffs come as a result of mounting fears of an impending recession.

Peloton mass layoffs:

After Peloton had mass layoffs back in February of 2022, resulting in 20% of its workforce being laid off, the fitness company announced yet another round of layoffs (October, 2022), laying off 500 employees who made up 12% of their current workforce.

The layoffs, first reported by The Wall Street Journal, are reported as Peloton’s most recent attempt at internal restructuring as a result of the rapid drop in sales after its record growth during the at-home workout boom during the pandemic.

Snapchat mass layoffs

Snap Inc. has confirmed that the company will lay off 20% of its employee workforce, which accounts for approximately 1,300 people (September, 2022)

The layoff news was confirmed by Snap spokesman on August 31st, 2022 noting the layoffs were in an attempt to bring down costs.

The layoffs will be predominately from their content team, ending production for most of their original Snapchat long-form shows. Employee layoffs will also occur in the company’s hardware division.

SoundCloud layoffs

After an eventful year of teaming up with the likes of Pandora and Splice, in early August 2022 SoundCloud CEO, Michael Weissman announced that the online music streaming community platform would be reducing its global headcount by around 20%.

Cited as part of a “significant company transformation” and a tumultuous economic landscape, SoundCloud layoffs are set to affect employees worldwide — not just here in the United States.

Netflix mass layoffs 

The streaming giant’s subscriber count continues to shrink and as a result, Netflix has laid off 150 workers accounting for about 2% of its workforce in June 2022.

Citing slowing revenue as the reason for slow company growth, Netflix representatives explain that these layoffs come as the result of a business need and not due to any personal performance issues of those being let go.

Carvana mass layoffs

In one of the largest mass layoffs this year, Carvana cited a recession in auto sales as the main driver in laying off 2,500 employees in November, 2022.

Reports of this mass layoff have revealed that these 2,500 Carvana employees were made aware of layoffs via Zoom.

Coinbase mass layoffs

The cryptocurrency exchange platform announced that it would be laying off 18% of its workforce in June, 2022.

CEO Brian Armstrong cited a possible recession, a need to manage costs, and growing “too quickly” during a bull market as reasons for laying off almost one-fifth of the Coinbase workforce, leading many to wonder if this is a sign of things to come for the crypto industry at large.

Compass & Redfin mass layoffs

As the housing market remains as volatile as ever and interest rates continue to rise, Compass, a real estate brokerage, announced that it would be laying off 13% of its employees in November, 2022 — this after Compass laid off 18% of its workforce in June, 2022.

Redfin, another real estate brokerage feeling the effects of declining home sales, announced that it will be cutting its workforce by 8% in June, 2022.

These layoffs come as both companies have been struggling to keep up with the slowing housing market.

Companies with layoffs in 2022:

  • Cisco layoffs: 5% of workforce laid off (December, 2022)
  • DoorDash layoffs: 6% of workforce laid off (November, 2022)
  • Candy Digital layoffs: 33% of workforce laid off (November, 2022)
  • Redfin layoffs: 13% of workforce laid off(November, 2022)
  • Amazon layoffs: 1% of workforce laid off beginning (November, 2022)
  • Meta layoffs: 13% of workforce laid off (November, 2022)
  • Twitter layoffs: 50% of workforce laid off (November, 2022)
  • Zillow layoffs: 5% of workforce laid off (October, 2022)
  • Peloton layoffs: 12% of workforce laid off (October, 2022)
  • DocuSign layoffs: 9% of workforce laid off (September, 2022)
  • Taboola layoffs: 6% of workforce laid off (September, 2022)
  • Snapchat layoffs: 20% of workforce laid off (September, 2022)
  • Outbrain layoffs: 3% of workforce laid off (July, 2022)
  • Lyft layoffs: 2% of workforce laid off (July, 2022)
  • The Mom Project layoffs: 15% of workforce laid off (July, 2022)
  • Opensea layoffs: 20% of workforce laid off (July, 2022)
  • Substack layoffs: 14% of workforce laid off (June, 2022)
  • Ninantic layoffs: 8% of workforce laid off (June, 2022)
  • MasterClass layoffs: 20% of workforce laid off (June, 2022)
  • Bird layoffs: 23% of workforce laid off (June, 2022)
  • Superhuman layoffs: 22% of workforce laid off (June, 2022)
  • Cameo layoffs: 25% of workforce laid off (May, 2022)
  • Robinhood layoffs: 9% of workforce laid off (April, 2022)
  • Virgin Hyperloop layoffs: 50% of workforce laid off (February, 2022)
  • Peloton layoffs: 20% of workforce laid off (February, 2022)
  • Beachbody layoffs: 10% of workforce laid off (January, 2022)

What other companies had mass layoffs last year?

Although not technically a “mass” layoff (more than 1/3 of the company or more than 500 employees laid off in 30-days) the following companies have seen large layoffs in 2022:

DocuSign layoffs this year

DocuSign announced in September that it plans to cut around 9% of its workforce.

Like many other major corporations making mass layoffs, DocuSign says these layoffs are a part of a major restructuring plan ahead of the expected recession.

Ford Motor Company layoffs this year

Ford announced in late-August 2022 plans to lay off 2,000 salaried workers and 1,000 contract workers across the US, Canada and India — with a large percentage of these layoffs occurring in Michigan.

The layoffs will be effective September 1, 2022 according to a company spokesman.

7-Eleven layoffs this year

7-Eleven laid off at least 880 corporate employees in July of 2022 at offices in Ohio and Texas. A company spokesman said these layoffs were the result of an ongoing “integration process” after it bought rival Speedway in 2020.

Shopify layoffs this year

According to the WSJ, Shopify plans to lay off approximated 1,000 employees, roughly 10% of its global workforce.

In an internal memo on July 26, CEO Tobi Lutke told employees his belief that post-pandemic e-commerce would continue to grow did not come to fruition, noting “It’s now clear that bet didn’t pay off. Ultimately, placing this bet was my call to make and I got this wrong.”

Vimeo layoffs this year

Popular video-hosting platform Vimeo laid off 6% of their employees in July, 2022. CEO Anjali Sud stated the staff layoffs were necessary to give the company “financial flexibility,” while also noting “after assessing the challenging market conditions and uncertainty ahead, I believe this is the responsible action to take.”

Tesla layoffs this year

In late June, Tesla laid off 229 employees largely from it’s Autopilot team — with the majority being hourly workers, which is surprising given that CEO Elon Musk stated earlier in the year layoffs would be targeted at salaried positions.

Loom layoffs this year

While not technically a “mass” layoff, video messaging and collaboration service Loom recently laid off 34 members of its relatively small staff accounting for 14% of its overall workforce.

While Loom hosts 14 million monthly users, these layoffs are said to be a part of the company’s overall strategy for more sustainable growth moving forward.

What to do if you’ve been laid off

While you may be overwhelmed by what to do after being laid off, there are a few important things you should do immediately after.

If you’ve recently been laid off, be sure to take care of these three things immediately before figuring out what to do next…

Tip 1: File for unemployment immediately

Filing for unemployment is the first step you should take if you’ve been laid off. You can usually file for unemployment online, simply by providing information like your Social Security number, driver’s license or state ID number, and contact information for your previous employer.

Tip 2: Health insurance options

Exploring your health insurance options after being laid off is also important. If you were previously covered by your employer, you may be eligible for COBRA, which allows you to keep your health insurance for a certain period of time after leaving your job.

Tip 3: Retirement savings

If you had access to a 401k contribution plan at your former employer, you have the option to cash out your 401k, though this option is usually not advised as certain penalties can be incurred.

There is also the option to roll the account over into an IRA but take the time you need to decide which option is best for you with a licensed finance professional.

Top industries to apply to after you’ve been laid off 

Once you’ve taken care of those 3 housekeeping items to stay afloat while you search for your next job, take some time to update your resume, start networking, and consider the following industries in high demand for talented professionals.

Tech Industry

The tech industry is always in need of talented professionals and there is no sign of that changing anytime soon. Companies like Google, Amazon, and Apple are always on the lookout for top talent in fields with top salaries in data science, software engineering, and product management.

Digital Marketing Industry

The rise of social media and online advertising has led to a boom in the digital marketing industry. Companies are in need of talented marketers to help them reach their target audiences online in new and innovative ways.

With countless, in-demand roles with top salaries in social media and digital marketing, now is a great time to consider a career as a social media coordinator, digital marketing manager, and more.

Creative Industry

The creative industry, which includes roles with top salaries in web design, graphic design, and copywriting, is also in high demand.

Companies are always looking for creative professionals to help them stand out from the competition. If you’re a creative professional who has recently been laid off, consider pursuing a career in the creative industry.

For a complete breakdown of all the top Tech, Creative & Digital Marketing salaries, download our 2023 Salary Guide.

Are more mass layoffs coming in 2023?

While employment trends for 2023 continue to change and evolve and many companies have experienced mass layoffs, economists say that this won’t necessarily be the norm moving forward.

Recent U.S. employment numbers show that employment rates remain steady and although certain sectors have been hit by layoffs harder than others, these companies are largely those that saw larger than average growth throughout the Covid-19 pandemic.

Were you affected by a mass layoff?

Every year,  Mondo helps over 2,000 candidates find jobs they love.

Get Hired

If you’ve been affected by mass layoffs in 2022 or 2023, remember you still have plenty of options.

There are many industries that are still hiring and there are many things you can do to improve your employability.

Be sure to file for unemployment, explore your health insurance options, and update your resume before applying to jobs in high-demand industries like tech, digital marketing, and the creative arts.

With a little effort, you’re sure to find yourself gainfully employed again in a fulfilling role.

Continued Reading:

By

Digital Content Strategist for Mondo National Staffing Agency

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