Companies across the tech industry have announced layoffs, affecting thousands of workers in the first few weeks of 2023.
Sales at top tech firms have retreated from the blistering pace attained during the pandemic, when billions across the world were forced into isolation. Customers stuck at home came to rely on delivery services like e-commerce and virtual connections formed through social media and videoconferencing.
Company officials have often cited economic uncertainty and fears of a recession in their job-cutting, cost-cutting decisions. It follows a volatile 2022, which was also marred with layoffs by the thousands across major tech brands.
Spotify, the Sweden-based music streaming platform, announced on Monday plans to slash 6% of its workforce, which amounts to about 600 employees.
After strong pandemic-era performance, the company encountered a challenging business environment, CEO Daniel Ek told employees in a memo on Monday.
“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,” he said. “In hindsight, I was too ambitious in investing ahead of our revenue growth.”
Online home goods retailer Wayfair will lay off about 1,750 workers or roughly 10% of its staff, the company announced Friday, Jan. 20.
Wayfair saw business surge during the pandemic, as people stuck at home eschewed brick-and-mortar shopping and increased spending on furniture, home renovations and other domestic improvements.
But the economic environment has turned against the company, as inflation has strained household budgets and limited nonessential purchases.
The move last week follows a previous round of layoffs in August that cut 5% of the company’s workforce.
“We thrive when we are scrappy and dedicated to customer outcomes,” Wayfair CEO and Co-founder Niraj Shah said Friday