Meta, the parent company of Facebook, is the newest tech giant to lay off a significant portion of its workforce. Yesterday, CEO Mark Zuckerberg told employees that the company would lay off 11,000 employees and its hiring freeze would continue through the first quarter of 2023.
Meta isn’t the only company to implement such large-scale layoffs — Salesforce, Twitter, and Stripe have also announced sizeable layoffs. Other companies, like Amazon and Apple, have also implemented hiring freezes.
In many ways, the layoffs come as a surprise since the most recent jobs report alluded to a stronger economy, showing that the U.S. added 261,000 new jobs in October. So, what does this recent wave of layoffs indicate about the economy, and what should workers expect in 2023?
The wave of high-profile company layoffs has congested the news headlines over the last few weeks. Twitter laid off 7,500 employees, Salesforce laid off hundreds of workers, and Stripe plans to reduce its workforce by 14%.
Other companies are following suit by implementing hiring freezes or significantly reducing their spending. This has led to doubts about the strength of the economy and, more importantly, what will happen in 2023.
Many of these layoffs are the result of companies that overhired during the pandemic and were forced to cut staff when business slowed. This was the case with Meta — the company assumed that the pandemic-fueled surge in revenue growth would last.
Instead, the company has seen its revenue decrease due to the economic downturn and increased competition. Other companies have been affected by the recent rate hikes and reduced consumer spending.
While it’s worth paying attention to mass layoffs, these incidents don’t necessarily reflect the tech industry as a whole. What’s really worth paying attention to is how quickly the employees that have been laid off are able to re-enter the workforce.
Getting laid off is stressful, but it’s important to remember that your skills are valuable and needed elsewhere. Certain large tech companies are dealing with decreased earnings, but there are opportunities elsewhere.
Here are some steps you can take if you’ve been recently laid off:
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Lauren is the Marketing Manager at Nationalbusinesscapital.com. She has 7 years of professional experience with a focus on small business marketing and finance. She previously worked as a senior business analyst for B2B SaaS, Sky IT Group. She has covered topics including, business financing, startups, retail, taxes & regulations, etc. Her work has been featured by USA Today, Google & Yahoo News. Lauren holds a B.A. from the Fashion Institute of Technology’s (FIT) School of Business.